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B-188186 1 (1979-09-05)

handle is hein.gao/gaobadhos0001 and id is 1 raw text is: 



                        'THE COMPTROLLER GENERAL
DECISION      .          OF  THE   UNITED STATES
                         WASHINGTON, O.C. 20548




FILE:  B-188186                DATE:   September 5, 1979

MATTER   OF:  District Containerized Express-
      8    f k4 Reconsideration]

DIGEST:

1.   Under Section 901 of the Merchant Marine
     Act of 1936, 46 U.S.C. § 1241(a) (1976),
     economy alone may not be relied on to
     justify use of foreign-flag ship.

2.   Where carrier submits evidence of ocean
     freight charges paid to foreign-flag
     carrier, its bills for through door-to-
     door transportation charges less ocean
     freight charges may be certified for payment.

     District Containerized Express (District) requests
reconsideration of our decision of April 21, 1977,
B-188186.  In that decision we held that District's
bills for freight charges allegedly due for the door-
to-door through transportation of two privately-owned
vehicles (POV) from Frankfurt, Germany, to Bladensburg,
Maryland, could not be certified for payment because
contrary to Section 901 of the Merchant Marine Act of
1936, 46 U.S.C. § 1241(a) (1976), foreign-flag ships
were used for part of the transportation when American-
flag containership service was available. District's
bill numbers are DCE-895 and DCE-865.

     District contends that use of American-flag
containership services would have doubled the cost of
the ocean part of the transportation. However, economy
alone may not be relied upon to justify use of a
foreign-flag ship.  31 Comp. Gen. 351, 353 (1952).

     District's agent in Germany tendered the POVs to a
foreign-flag line, Wallenius Lines, which transported 1.500-
them from Bremerhaven, Germany, to Baltimore, Maryland.
District arranged for transportation of the POVs
between the employees' residences and the ports.

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