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B-205368 1 (1982-06-15)

handle is hein.gao/gaobadkkd0001 and id is 1 raw text is: tI' iTHE COMPTROLLER ENLRAL 0 Cz Co*l1l 1 C3 AM OF THE UNITED 3TArUS / WABHINGTObJ, D. Q. 20548 ,,-..'&aito S FILE:B-,205368 DATE: June 15, 1982 MATTER OF: American Farm Lines, Inc* DIGEST: Wherti tender offers Government lower rates for a Freight-all-kinds (FAR), mixed shipment, but states that the truckload FAK rates will not apply to contraband such as radioactive mate- rials, GSA may apply truckls.ad FVA rates to noncontraband portion of shipment and use other applicable less than truckload rates $ for tho contraband, The Nation~al Motor Freight Classification Rule 645, which governs tender applicable here, does not prohibit GSA's appli- dation of the tender FAR rates under these circumstances. American Farm Lines, Inc. (AFL), requests review of the General Services Administrations (GSA) determination that AFL overcharged the United States *846.90 under Government bill of lading (GBL) S-i,042,121. The shipment was a truckload (TL) quantity consigting of a consolida- tion of less than truckload (LTL) quantities of different articles, including two cartons of radioactive material weighing 114 pounds. In its audit, GSA corsidered the shipment as two separate shipments. It applied an LTL class rate to the radioactive material, and a TL Freight all kinds (FAK) rate under AFL Tender 266 to the other articles. The FAR rate could not'be applied to the entire shipment because item 140 of the tender expressly stated that the FAK rates therein would not apply to radioac.ive m&terial, among others. AFL objects to this audit basis. AFL contends that the lower TL FAK rate is not applicable because the tender is governed by the National Motor Freight Classification (NMFC), which includes the TL mixing rule, Rule 645. Sec- tion 3 of this rule provides for dividing shipments into TL and LTL shipments for rate purposes where it results in lower charges; however, by the section 3 language, it is subject to section 1, which prohibits the use of FAX rates on mixed shipments. I $

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