Board of Contract Appeals General Services Administration Washington, D.C. 20405 May 22, 1998 GSBCA 14244-RATE In the Matter of TRI-STATE MOTOR TRANSIT CO. John D. Bagileo and Claire Shapiro of Bagileo, Silverberg and Goldman, L.L.P., Washington, DC; and Robert D. Norcom, Auditor, Tri-State Motor Transit Co., Joplin, MO, appearing for Claimant. Jeffrey J. Thurston, Director, Office of Transportation Audits, General Services Administration, Washington, DC, appearing for General Services Administration. Colonel James F. Quinn, Staff Judge Advocate, Headquarters, Military Traffic Management Command, Department of the Army, Falls Church, VA, appearing for Department of Defense. DANIELS, Board Judge (Chairman). Tri-State Motor Transit Co. has asked us to review denials by the General Services Administration's Office of Transportation Audits (OTA) of thirty-four separate claims pertaining to moneys due the carrier for transporting wheeled vehicles for the Department of Defense (DoD) during 1990 and 1991.[foot #] 1 ----------- FOOTNOTE BEGINS --------- [foot #] 1 Earlier, when the General Accounting Office (GAO) had statutory responsibility for reviewing (on request by carriers) determinations made by OTA, Tri-State had asked GAO to consider OTA's denials of these claims. GAO's response contained language which, we have held, indicated that the matter remained pending and was never resolved by that Office. Tri-State Motor _______________ Transit Co., GSBCA 14249-RATE, 98-1 BCA 29,516; Tri-State Motor ___________ _______________ Transit Co., GSBCA 14245-RATE, 98-1 BCA 29,431; Tri-State Motor ___________ _______________ Transit Co., GSBCA 14243-RATE, 98-1 BCA 29,411. After the ____________ review authority was transferred to this Board, Tri-State asked us to examine the denials. Since GAO never rendered judgment on these OTA actions, we proceed to consider the claims on their merits. ----------- FOOTNOTE ENDS ----------- The claims all involve an issue which we have considered many times before: whether DoD must pay additional amounts for carriage when it declares on a Government bill of lading (GBL) a value for the vehicle which is in excess of the default "released value." The "released value" limits the carrier's liability in the event that the shipment is lost or damaged. According to Item 190 of the Military Traffic Management Command Freight Traffic Rules Publication No. 1A, tenders filed with DoD for the movement of vehicles for that agency "will be subject to a released value not exceeding $20,000 for each vehicle." However, "[i]f a value exceeding th[is] released value is stated on the bill of lading, this valuation shall control." Consequently, we have held that where a higher value is stated, the shipper must pay an additional amount -- a premium to cover the carrier's increased liability. Tri-State Motor Transit Co., GSBCA 14352-RATE, 98-1 BCA 29,521; Tri-State Motor Transit Co., GSBCA 14249-RATE, 98-1 BCA 29,516; Tri-State Motor Transit Co., GSBCA 14353-RATE, 98-1 BCA 29,515; Tri-State Motor Transit Co., GSBCA 14245-RATE, 98-1 BCA 29,431; Tri-State Motor Transit Co., GSBCA 13735-RATE, 98-1 BCA 29,415 (1997); Tri-State Motor Transit Co., GSBCA 14251-RATE, 98-1 BCA 29,443; Tri-State Motor Transit Co., GSBCA 14243-RATE, 98-1 BCA 29,411; Tri-State Motor Transit Co., GSBCA 14241-RATE, 97-2 BCA 29,306; McGil Specialized Carriers, GSBCA 14127-RATE, 97-2 BCA 29,295; Tri-State Motor Transit Co., GSBCA 13839-RATE, 97-1 BCA 28,953; Tri-State Motor Transit Co., GSBCA 13746-RATE, 97-1 BCA 28,951. With the exception of three claims which we treat later, each of the claims involved in this case is similar to the ones in the cases cited above. DoD stated on the GBL a specific value for the vehicle or vehicles being shipped (usually $2.50 per pound per vehicle, but sometimes $1.75), and the vehicles were sufficiently heavy that this value was more than the default released value. DoD is liable, in accordance with the terms of Item 190, for the additional excess released value charge. The amount is as calculated by Tri-State as to the following nineteen GBLs, for which the total sum sought by the carrier is $1,634.70: GBL Amount C-0,997,977 $ 90.00 C-1,103,032 178.20 C-1,103,052 153.15 C-1,137,759 97.05 C-7,653,961 41.70 C-7,867,882 43.95 C-9,072,771 166.50 C-9,531,628 39.00 D-0,506,146 18.60 D-0,556,268 90.00 D-0,665,027 91.05 D-0,711,177 119.85 D-0,977,876 204.60 D-0,980,567 40.65 D-1,043,709 111.30 D-1,655,268 26.10 E-2,038,543 41.40 S-1,356,316 40.80 S-1,356,318 40.80 Tri-State is also due additional compensation totaling $287.40 for transporting vehicles under the following three GBLs; the amounts we find due for these shipments are slightly different from those calculated by the carrier: GBL Amount C-8,125,413 $ 89.10 D-0,973,074 99.15 D-0,973,075 99.15 As to the following nine GBLs, the copies of the documents which Tri-State provided to the Board are illegible, but if the weights of the vehicles and the statement "Released value not exceeding $2.50/lb." are as maintained by the carrier on its claim worksheets, DoD owes Tri-State a total of $792.30. Neither OTA nor DoD has challenged the accuracy of the statements made on the worksheets, so we accept those statements as accurate. The nine claims are as follows: GBL Amount E-1,049,057 $ 112.95 E-1,049,058 112.95 E-1,049,059 112.95 E-1,049,060 112.95 E-1,049,067 114.45 E-1,049,068 109.50 E-1,049,070 38.85[foot #] 2 E-1,049,071 38.85 E-1,049,352 38.85 The total additional amount we find due Tri-State for transporting vehicles pursuant to the thirty-one GBLs listed above is $2,714.40. The three final claims, involving GBLs numbered C-9,248,422, C-9,248,425, and C-9,248,426, are different from all those discussed above. Each of these GBLs contains two statements regarding the value of the vehicles being shipped. On the first page of the GBL appears, "Release [sic] value not to exceed $2.50 per /lb." On the second page appears, "Released value not to exceed $20,000 per veh[icle]." These statements are inconsistent ----------- FOOTNOTE BEGINS --------- [foot #] 2 Tri-State's calculation of the amount due for this GBL, $23.85, is in error. ----------- FOOTNOTE ENDS ----------- with each other. The vehicle being shipped under each GBL weighed 41,344 pounds, which, if valued at $2.50 per pound, yields a figure of $103,360 -- considerably more than $20,000. Because carriers are legally responsible for issuing bills of lading, if a carrier executes a bill which contains conflicting or erroneous entries without first obtaining clarification from the shipper, it may not benefit from neglecting its duty to secure such clarification. C. I. Whitten Transfer Co., GSBCA 13893-RATE, 97-2 BCA 29,031. Because these GBLs on their face contain conflicting entries, and Tri-State executed the bills without first securing clarification from DoD, we will not permit the carrier to obtain the additional charges it seeks for transporting the vehicles in question. __________________________ STEPHEN M. DANIELS Board Judge