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B-236389 1 (1990-07-25)

handle is hein.gao/gaobadntt0001 and id is 1 raw text is: 


Comptroller General
of the United States
Washington, D.C. 20548

Decision


Matter of:      Consolidated Freightways, Inc. -- Exclusive Use

File:           B-236389

Date:           July 25, 1990

DIGEST

The Military Traffic Management Command's Freight Traffic
Rules Publication No. 1A precludes a carrier from assessing
an additional charge for exclusive use of vehicle service when
per mile per vehicle used rates apply.


DECISION

Consolidated Freightways, Inc., asks that we review a
transportation audit settlement by the General Services
Administration (GSA) denying the carrier's charges of
$1,890.90 for exclusive use of vehicle service as requested
by the government. Consolidated states that Item 106 of the
Military Traffic Management Command (MTMC) Freight Traffic
Rules Publication Number 1A (MFTRP 1A), effective July 1,
1987, allows a carrier to charge a premium for exclusive use
when a proper tender setting such a charge is filed. GSA
contends that Item 106 in fact prohibits exclusive use
charges when payment already is based on per mile per vehicle
used (PM) rates, in which case the government is paying for
the entire vehicle anyway.

We sustain GSA's settlement action.

We addressed the precise issue involved here in our recent
decision in Phoenix Motor Express, Inc. -- Exclusive Use,
B-235886, June 4, 1990, where we agreed with GSA. We noted
that Item 106, paragraph 1, provided for exclusive use of the
vehicle at the shipper's request but that charges for it
will not be assessed when . . . tender rates are based on
Rate Qualifiers [including] PM. We further noted the
direction in Item 106, paragraph 2, that:

        Carriers desiring to offer exclusive use of
        vehicle, as an optional accessorial service
              should complete Section F(2) of the DOD
        tender by entering an appropriate charge for
        EU(1). Carriers filing tenders with . . . one
        of the Rate Qualifiers [including] PM . .
        should complete Section F(2) of the DOD tender
        by entering EU(1)$. X X.

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