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B-260604.2 1 (1996-04-18)

handle is hein.gao/gaocrptadpu0001 and id is 1 raw text is: Comptroller General of the United States Washington, D.C. 20548 Decision Matter of: Trism Specialized Carriers, Inc. File: B-260604.2 Date: April 18, 1996 DIGEST The Department of Defense (DOD), as a shipper, is not directly liable to a carrier for the charges incurred by a DOD authorized shipper agent where the record indicates the carrier knew prior to performing services that a government bill of lading relationship existed between DOD and the shipper agent which did not include the carrier as a party to that contract, and where, in addition the relationship between DOD and the shipper agent was one in which: DOD paid the shipper agent in accordance with the shipper agent's charges and without regard to the charges of the underlying carrier; DOD held the shipper agent liable for any loss and damage and did not view the shipper agent as a mere conduit for recovery from the underlying carrier; the shipper agent had substantial authority to select the underlying carrier; and DOD did not organize or substantially control the shipper agent, a for-profit business which generally provided similar service for customers other than DOD. DECISION Trism Specialized Carriers, Inc. (Trism), requests our review of the General Services Administration's (GSA) settlements disallowing its claims against the Department of Defense (DOD) for services it performed in connection with several government bill of lading (GBL) transactions. The issue presented is whether the government is directly liable to a carrier for unpaid charges incurred by an approved shipper agent of the DOD under item 11 of the Military Traffic Management Command's Freight Traffic Rules Publication No. IA (MFTRP IA). We affirm GSA's settlement. BACKGROUND Our review of Trism's submissions indicate that between December 1992 and June 1993, DOD tendered several shipments in the Province of Quebec to Roadair Feeder Service, an authorized shipper agent of DOD, for transport to various points in the 1148417

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