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B-245855 1 (1992-04-27)

handle is hein.gao/gaobadoaz0001 and id is 1 raw text is: Comptroller General of the United States WashIngton, DC, 20548 Decision Matter of: SEKO Air Freight, Inc. File: B-245855 Date: April 27, 1992 DIGESTS Department of Defense Guaranteed Traffic agreement provides that a participating carrier or forwarder will not be released from its obligation to furnish service until the expiration date of the agreement unless the Military Traffic Management Command assigns a replacement carrier with a definite start-up date, If such an agreement is extended by mutual agreement, the expiration date becomes the expiration date of the extension. DECISION SEKO Air Freight, Inc., requests review of GSA's deductions of approximately $250,000 from current bills to collect overcharges arising in more than 1,500 Government Bill of Lading (GBL) transactions with shipment dates between May 31, '1987, and September 16, 1987. We sustain GSA's audit actions. GSA's overcharge claims arose after SEKO attempted to withdraw, by letter to the Defense Mapping Agency (DMA) dated May 8, 1987 (effective COB May 30), from four Guaranteed Traffic agreements executed with the Department of Defense on behalf of DMA. These agreements had been extended by mutual agreement from April 3, 1987, to September 16, 1987. GSA and the Military Traffic Management Command (MTMC) contend that SEKO's withdrawal was not effective until after September 16, because SEKO only notified a DMA official of the company's intent to withdraw, and did not formally notify MTMC (the negotiating agency) by tender supplementation. GSA and MTMC also point out that MTMC had not assigned a replacement carrier with a definite start-up date, and contend that under Item 35b of each agreement such action was a condition to SEKO's release

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