_______________________________________________ January 9, 1998 _______________________________________________ GSBCA 14249-RATE In the Matter of TRI-STATE MOTOR TRANSIT CO. 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. Col. James F. Quinn, Staff Judge Advocate, Headquarters, Military Traffic Management Command, Department of the Army, Falls Church, VA, appearing for Department of Defense. BORWICK, Board Judge. Tri-State Motor Transit Company (Tri-State) filed a request for review with the General Accounting Office of the General Services Administration s (GSA S) denial of claims for reimburse- ment for alleged excess released value on five shipments sent by government bills of lading (GBLs).[foot #] 1 GSA had denied each claim for the same reason, essentially that the Government had no intention of declaring a released value in excess of the default released value of $20,000 established for the shipped goods by Military Traffic Freight Rules Publication No. 1A (MTFRP 1A) Item 190. In considering this matter, the GAO stated: ----------- FOOTNOTE BEGINS --------- [foot #] 1 Congress transferred the review function formerly performed by GAO to the Director of the Office of Management and Budget (OMB) and authorized him to delegate it to any other agency or agencies. Pub. L. No. 104-53, 211, 109 Stat. 514, 535 (1995). The Acting Director of OMB delegated this function to GSA (Delegation, June 28, 1996), and the Acting GSA Administrator redelegated it to this Board (Delegation, July 17, 1996). Later, Congress made permanent the assignment of this duty to the Administrator. Pub. L. No. 104-316, 202(o)(2), 110 Stat. 3826, 3844 (1996). ----------- FOOTNOTE ENDS ----------- As you suggest, GSA's settlements appear to be contrary to our decision in Tri-State Motor Transit Company- Reconsideration, B-254378.2 et. al., July 5, 1995. Your letter to the [Administrator of General Services], dated September 14, 1995, indicates that you are at- tempting to enforce our July 5, 1995, decision within GSA. If you are unsuccessful with the Administrator, you may have to pursue other remedies. We have clearly stated our position on the matter and have nothing further to add. We will maintain this letter as evi- dence of your request for review, and will provide a copy of it with all enclosures to GSA and to the Mili- tary Traffic Management Command. Please advise if you believe there are further steps we can take. We consider the last paragraph of this letter to be an indication that the matter remained pending and was not resolved by GAO. Tri-State Motor Transit Co., GSBCA 14243-RATE (Nov. 4, 1997). We proceed to consider the claim on its merits. For the reasons stated below, we conclude that GSA erred in denying the claims. The GBLs and claimed amounts are: D-2,408,998 $60.00 C-1,038,403 9.00 E-2,255,752 37.35 D-1,038,400 9.00 C-7,934,279 88.80 The claim for GBL D-2,408,998 is typical of the five claims presented here. Under that GBL, Tri-State carried a motor vehicle/truck, weighing 24,000 pounds, from Martin Marietta facilities in Orlando, Florida to the Redstone Arsenal in Ala- bama. The truck was shipped as freight all kinds (FAK), and the GBL contained the following notation: "RVNX [released value not to exceed] $2.50 [per pound]." Tri-State charged the Government $817.40, which the Govern- ment paid. Then, Tri-State filed a claim for the excess declared value, which it calculated as follows. Tri-State derived the declared value of $60,000 (24,000 (the weight of the truck) x $2.50). The excess declared value above the default released value of $20,000 established by MTFRP 1A) Item 190 was therefore $40,000. Tri-State applied the rate of $.15/$100 to arrive at an amount due of $60.00 (($40,000/100) x $.15). The Government maintains the released value statements on the GBLs such as "RVNX $2.50 per lb.," do not entitle claimant to payment beyond the FAK rates. Both this Board and the General Accounting Office have considered this "released valuation" issue and have concluded that the Government is wrong. Tri-State Motor Transit Co., GSBCA 14352-RATE (Jan. 6, 1998); Tri-Stae Motor Transit Co., GSBCA 14245-RATE (Nov. 26, 1997); 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; Tri-State Motor Transit Co.--Reconsideration, B-254378.2, et al. (July 5, 1995). We follow our earlier decisions and the decisions of the GAO. Tri-State is entitled to payment on its claims. __________________________ ANTHONY S. BORWICK Board Judge