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B-194116 1 (1979-04-09)

handle is hein.gao/gaobadhcw0001 and id is 1 raw text is: 

                                THE   COMPTRDLLER GENERAL
                      OF             THE    UNITED       STATES
                                VVASHINGTON. D.C. 20548




   FILE:  B-194116                     OATE: AP

   MATTER OF:;Pacific Intermountain Express Co. (/,&t7 07J27

LzV 7 1     1 A de 1~ ~
   IGEST:

   1.    Inclusion by Air Force installation of overhead cost of 26
        percent in damages collected from carrier for Government's
        repair of generator damaged in transit was not improper
        because the law is concerned with restoration.of claimant to
        position that would have been occupied had there been no damage
        to shipment and overhead cost assessed is sustained by cost
        accounting records.

    2.  Damage noted on delivery receipt is not conclusive as to extent
         of damage to shipment and does not prevent pr pf     a  s by
         other means. In addition, where Air. Fr-'  repair       c  ity
         documents number of work hours needed for repairs and claimant
         does not present any evidence challenging propriety of those
         costs, we have no basis to question l-bor costs in the damage
         claim.

    3.   Transportation costs to ship generator to repair facility are
         incidental to costs of repair and are proper elements of damag6es
         but should be corrected to reflect constructive cost of motor
         carrier transportation to repair facility..

         Pacific Internpuntain Express Co. (PIE) by letter dated
    November 27, 1978, requests review of our Claims Division's settlement
    certificate dated October 24, 1978, in which the Division disallowed
    PIE's claim for $2,123, [Clairas Division file No. Z-1351463(6)1. The
    claim represents the amo pnt collected by the Covernmentb vsetoff from
    monies otherwise due PIE to satisfy the Government's claim for damage
    against the carrier.

         The Government's claim arose from the damages sustained to a
    generator shipped by the/Department of the Air Force under Government
    bill of lading (GBL) No. -5506352. The generator which weighed 4,483
    pounds was picked up at Loring Air Force Base, Maine, by Coles Express
    on February 25, 1975, and interlined to PIE for delivery on March 11,
    1975, to McClellan Air Force Base, California. -An inspection at the
    destination revealed that the generator had been damaged during the
    transportation, and the delivery receipt was annotated to reflect the
    damaged condition. The damage was acknowledged by the signature of
    the carrier's driver and was inspected by an agent of the carrier.

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