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B-114874 1 (1978-10-13)

handle is hein.gao/gaobadgkq0001 and id is 1 raw text is: / ~' THRI COCIPTSCLLEn fgNERAL. CECISION ': . F UITED ETATE S WADaMINOrON. 0.C. a0154H FILE: B-114874 DATE:0ctober 13, 1973 MATTER OF: Goveronent Lossem in Shipment Act - Pureaies of Postal Insurance DIGEST: 1. Neither the Government Louses in Shipment Act, 40 U.S.C. 1 726 (1970), nor the Government's general self-insurance policy prohibit Federal agencies from usiig registered mail where admin- istratively determined necessary in order to obtain the special aervice of greater protec- tion in the handling and delivery of mail rather than to obtain the insurance coverage also offered. 2. Federal agencies are prohibited from using in- sured mail under both 40 U.S.C. I 726 and the Government's melt-insurance policy since in- sured mail provides no special or additional service in addition to the indemnity offered. The dministrator, General Services Administration (GSA), requests our decision as to whether ,the Government Losses in Shipment Act, 40 U.S.C. If 721 et soi. (1970), prohibits Federal agencies from pur- chasing poistal insurance to obtain indemnity, unless specifically required by law. Under the Federal Records Management Amendments of 1976, Pub. L. No. 94-575, October'21, 1976, f 2(a)(2), 90 Scat. 2725, the Admin- lairator of GSA in responsible' for providing Federal agencies with guidance and assistance in the creation, maintenance, use and dis- position of records. Pursuant to this authority, GSA recently e.amined the use of insured and registered mail by Federal agencies and-concluded that, unless specifically required by law, agancies should not obtain indemnity by purchasIng postal inburance. This conclusion was based both on the well-established policy that the Government in its own insurer and on the requirements of the Govern- ment Losses In Shipment Act (40 V.S.C. 5 725). - 1- i

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