Board of Contract Appeals General Services Administration Washington, D.C. 20405 _________________________________ October 23, 1998 _________________________________ GSBCA 14248-RATE In the Matter of TRI-STATE MOTOR TRANSIT CO. Robert D. Norcom, Auditor, Tri-State Motor Transit Co., Joplin, MO, appearing for Claimant. James F. Fitzgerald, Director, Transportation Audits Division, General Services Administration, Washington, DC, appearing for General Services Administration. Col. James F. Quinn, Staff Judge Advocate, Headquarters, Military Traffic Management Command, Department of the Army, Falls Church, VA, appearing for Department of Defense. WILLIAMS, Board Judge. Tri-State Motor Transit Co. (Tri-State) has asked us to review denials by the General Services Administration's (GSA's) Office of Transportation Audits (now the Transportation Audits Division) of twenty-eight separate claims for monies due the carrier for transporting vehicles for the Department of Defense (DoD) during 1992. The claims all involve the identical issue: Whether DoD must pay additional amounts for transporting vehicles 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. Consistent with our precedent, we conclude that DoD must pay the excess valuation charges. Background Tri-State seeks the following amounts in excess value charges for the following twenty-eight GBLs for shipping the commodities listed below during 1992: 2 GBL Amounts Commodities Shipped G-0,669,528 $155.70 Rocket Launcher (Truck) D-2,002,099 52.50 Truck to Decon System G-0,669,529 155.70 Rocket Launcher (Truck) D-1,033,608 63.75 Trailer D-2,467,636 21.45 Two Trailers D-2,467,631 21.45 Two Trailers D-2,002,098 52.50 Truck G-0,669,371 155.70 Rocket Launcher (Truck) D-2,467,902 21.45 T w o HEMATs[foot #] 1 D-2,013,413 154.80 Semi Trailer Van D-2,467,622 21.45 Two Trailers D-1,971,854 21.45 Two Munitions Trailers D-2,467,624 21.45 Two Munitions Trailers D-2,467,616 21.45 Two Munitions Trailers D-2,467,618 21.45 Two Munitions Trailers D-2,467,627 21.45 Two Munitions Trailers D-2,467,628 21.45 Two Munitions Trailers D-2,467,626 21.45 Two Munitions Trailers D-2,467,619 21.45 Two Munitions Trailers D-2,467,634 21.45 Two Munitions Trailers D-2,467,633 21.45 Two Munitions Trailers D-2,408,997 33.75 Military Van Trailer D-2,467,620 21.45 Two Munitions Trailers D-2,467,621 21.45 Two Munitions Trailers D-0,709,123 25.20 Five-Ton Truck D-0,709,122 25.20 Truck D-2,467,903 21.45 Two HEMATs D-2,467,905 21.45 Two HEMATs ----------- FOOTNOTE BEGINS --------- [foot #] 1 HEMAT denotes a heavy expanded mobility ammunition trailer. ----------- FOOTNOTE ENDS ----------- 3 TOTAL $1,260.90 Discussion According to Item 190 of the Military Traffic Management Command (MTMC) 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, if a value exceeding that released value is stated on the bill of lading, the latter valuation shall control. Construing this rule, we have consistently held that where a higher value is stated the shipper must pay an additional amount, which we have characterized as a premium to cover the carrier's increased liability. E.g., Tri-State Motor Transit Co., GSBCA 14244-RATE, 98-2 BCA 29,787. Specifically, excess value charges of $0.15 for each $100 or fraction thereof by which the declared value of the shipment exceeds $20,000 per vehicle are properly assessed. In all of these claims, DoD stated on the GBL a specific value for the vehicle or vehicles being shipped (either $2.50 or $1.75 per pound per vehicle), and the vehicles were sufficiently heavy that this value was more than the default released value. MTMC argues that it has not been established that the commodities shipped were "self-propelled, wheeled vehicle[s] which might, under different circumstances, have been subject to a $20,000 default released value." Item 190 does not differentiate among vehicles on the basis of their being self- propelled or wheeled; it simply lists various kinds of vehicles the shipment of which will be subject to a maximum released value of $20,000, unless a higher value is stated on the bill of lading. MTMC's argument is irrelevant to the issue in this case. Decision Claimant is entitled to an additional payment of $1,260.90, the amount it claims, for transporting vehicles pursuant to the twenty-eight GBLs listed above. ________________________________ MARY ELLEN COSTER WILLIAMS Board Judge