Board of Contract Appeals
                 General Services Administration
                      Washington, D.C. 20405



                                                 

                         November 3, 2004
                                                 


                         GSBCA 16254-RATE


              In the Matter of SERVICE BY AIR, INC.


     Bruce L. Wald, Jeffrey B. Rose, and Inez K. Tremain of Tishler & Wald, Ltd.,
Chicago, IL, appearing for Claimant.

     James F. Fitzgerald, Director, Audit Division, Office of Transportation and Property
Management, Federal Supply Service, Washington, DC, appearing for General Services
Administration.

     Amy Kiger Crotts and Mark Langstein, Office of General Counsel, Department of
Commerce, Washington, DC, appearing for Department of Commerce.

DANIELS, Board Judge (Chairman).

     Service By Air, Inc. (SBA) was engaged by the Department of Commerce's Bureau
of the Census to provide freight forwarding services for that Bureau in conjunction with the
2000 Census.  In auditing the Bureau's payments to Service By Air, the General Services
Administration (GSA) concluded that the Bureau should have paid $1,789,777.87, rather than
the $4,244,874.22 which it actually paid.  GSA issued to Service By Air more than 1800
notices of overcharge, in the total amount of $2,455,096.35, regarding these payments.

     The case has now been settled, due to hard work, careful analysis, and admirable
cooperation by all concerned.  Counsel for Service By Air organized the claimant's
presentation in a way which greatly facilitated review.  They grouped the alleged overcharges
by subject, explained the claimant's position on each of those matters, and submitted
meticulous documentation which detailed the relationship between specific allegations and
the various topics.  Census Bureau managers and counsel for the Department of Commerce
responded by analyzing Service By Air's material with precision and common sense, openly
acknowledging errors they had made while under pressure to have materials shipped
promptly and proposing sensible means of correcting those mistakes.  GSA Audit Division
managers and counsel reflected on the materials submitted by both Service By Air and
Census and Commerce and modified GSA's initial position.  After the presiding judge made
informal comments, suggesting that the parties discuss settlement based on the general
principles and assessments of facts he expressed, all parties worked cooperatively toward a
voluntary resolution of the case.  In particular, GSA showed great reasonableness in reaching
a settlement.

     On November 2, 2004, Service By Air submitted to the Board a motion to dismiss the
case and a settlement agreement and release signed by representatives of both Service By Air
and GSA.  The settlement agreement provides for the payment by Service By Air to GSA of
$186,113.71.  This sum is actually less than the total amount Service By Air had earlier
agreed to pay; the difference between the two amounts has already been offset by the
Government against invoices presented by Service By Air for freight forwarding services on
shipments for other agencies.

     The motion is granted.  The case is dismissed.





                                   __________________________
                                   STEPHEN M. DANIELS
                                   Board Judge