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B-195482 1 (1980-01-17)

handle is hein.gao/gaobadhxh0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISION OF THE UNITED STATES WASHINGTON, D.C. 20546 FILE: B-195482 DATE: January 17, 1980 / bLG 0206o MATTER OF: Baggett Transportation Company-- LReconsideration deduo / 7rt >'o SA/ 'A- zec, DIGEST: Zat r~er A5Vee_la 1. Reimbursable nature of Foreign Military Sales program does not rebut presumption, arising from Government bill of lading contracts and Government's payment of resulting transportation charges to carrier, that Government was not in fact reimbursed by its FMS customers. 2. Where Government pays full transportation charges and is not reimbursed, Govern- ment receives entire benefit of lower section 22 rates. Baggett Transportation Company (Baggett)_xgrquests reconsideration of our decision of October 16, 1979, B-195482, in which we sustained deduction action taken by the General Services Administration(GS) to recover overcharges collected by Baggett in connection with the transportation of Foreign Military Sales (FMS) shipments, in'1977. See the Arms Export Control Act, 22 U.S.C. 2751 (1976). The overcharges represented the difference between commercial tariff rates, considered by Baggett to be applicable to the FMS shipments, and lower section 22 rates, considered by GSA to be applicable to those shipments. Based on our decision of March 30, 1978, B-1.90739, to True Transp.ort, Inc., we held that Baggett failed to rebut the presumption of fact that the Government re- ceived the entire benefit of the lower section 22 rates. 49 U.S.C. 22 (1976). The presumption arises from issuance of Government bills of lading (GBL) and from payment of transportation charges from appropriated funds. Baggett contends that the presumption is rebutted by the reimbursable nature of the FMS program. Baggett describes the Government's function under FMS contracts ~~ 3AV5\

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