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B-266114 1 (1996-04-12)

handle is hein.gao/gaocrptaduc0001 and id is 1 raw text is: Comptroller General of the United States Washington, D.C. 20548 Decision Matter of: Resource Protection File: B-266114 Date: Aptil 12, 1996 DIGEST In settling a claim against a household goods carrier for loss in transit of a service member's compact discs (CDs), the service applied a flat 10 percent depreciation rate to determine the amount of the carrier's liability. Carrier argues that the 50 percent rate applicable to phonograph records under the Joint Military Industry Depreciation Guide should be used, and that the 10 percent rate the service used, applicable in the service's settlement of claims with members, may not be applied against the carrier. In the absence of an agreed rate under the Depreciation Guide, the service applied the 10 percent rate which it states was established based on evaluation of the unique characteristics of CDs, which significantly differ from phonograph records. The carrier has not shown that the service's use of the 10 percent rate is unreasonable. Therefore, the service's action is sustained. Fogarty Van Lines, B-248982, Aug. 16, 1993, distinguished. DECISION Resource Protection, on behalf of Carlyle Van Lines, requests refund of $120 setoff by the Air Force for loss to the household goods of David W. Decembly, an Air Force member, whose goods were moved by Carlyle in October 1992 under GBL TP-522,787. BACKGROUND The missing items in question are 19 compact discs (CDs) which the member indicates he purchased new at various times during 1992, the year in which the shipment took place. The CDs were valued at $300, to which the Air Force applied a fiat 10 percent depreciation rate and paid the member the resulting $270 in settlement of his claim. The Air Force applied the same 10 percent rate in asserting its claim against Carlyle, and collected $270 from Carlyle. Resource Protection does not dispute Carlyle's liability for the CDs but argues that the depreciation rate used in the claim against Carlyle should have been 50 percent rather than 10 percent, which would result in a collection from Carlyle of $150, not $270. 404411

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