A-24222, MAR. 26, 1963

A-24222, MAR. 26, 1963

TO THE SECRETARY OF COMMERCE:

REFERENCE IS MADE TO LETTER OF DECEMBER 21, 1962, FROM MR. HERBERT W. KLOTZ, YOUR ASSISTANT SECRETARY FOR ADMINISTRATION, IN WHICH IT IS REQUESTED (1) THAT THE USE OF COMMERCIAL BILLS OF LADING BE PERMITTED AND THE ESTABLISHED PROCEDURES PRESCRIBED IN 5 GAO 3050 FOR CONVERSION OF COMMERCIAL BILLS OF LADING TO GOVERNMENT BILLS OF LADING BE WAIVED IN CONNECTION WITH CERTAIN SHIPMENTS OF PROPERTY OF THE UNITED STATES, AND (2) THAT PERMISSION BE GRANTED TO ALLOW IMPREST FUND CASHIERS OF THE NATIONAL BUREAU OF STANDARDS TO MAKE PAYMENT FROM IMPREST FUNDS OF TRANSPORTATION CHARGES OF $15 OR LESS ON SUCH COMMERCIAL BILLS OF LADING.

THE ASSISTANT SECRETARY FOR ADMINISTRATION EXPLAINS THAT NATIONAL BUREAU OF STANDARDS CEMENT INSPECTORS USE COMMERCIAL BILLS OF LADING FOR SHIPPING SAMPLES FROM VARIOUS LOCATIONS IN THE UNITED STATES TO WASHINGTON, D.C. HE STATES THAT, IN SOME INSTANCES, THE BUREAU SENDS BILLS OF LADING (PRESUMABLY GOVERNMENT BILL OF LADING FORMS) TO VENDORS ALONG WITH PURCHASE ORDERS WHEN THE FREIGHT COSTS ARE TO BE BORNE BY THE GOVERNMENT. THE BUREAU'S REVIEW OF ONE MONTH'S TRANSACTIONS IS SAID TO SHOW THAT OF 239 GOVERNMENT BILLS OF LADING PROCESSED, COVERING SHIPMENTS BY AIR, RAILWAY EXPRESS, AND MOTOR, 157 WERE FOR $15 OR LESS, WITH AN AVERAGE COST OF $7.20. THE PROPOSAL IS MADE THAT COMMERCIAL BILLS OF LADING BE USED FOR SUCH SHIPMENTS AND PAYMENT THEREFOR MADE BY AGENCY CASHIERS FROM IMPREST FUNDS, AFTER DELIVERY.

IT IS ALLEGED THAT THE PROPOSED PROCEDURE WOULD REDUCE THE COST OF ISSUING, OBLIGATING, ADJUSTING, AND MAKING FINAL SETTLEMENT ON OVER 50 PERCENT OF THE TRANSPORTATION BILLS PROCESSED BY THE BUREAU, AND WOULD ELIMINATE THE NECESSITY FOR A PERIODIC REVIEW OF THE UNPAID GOVERNMENT BILLS OF LADING TO DETERMINE THEIR STATUS. THE ASSISTANT SECRETARY FOR ADMINISTRATION POINTS OUT THAT UNDER THE PROPOSED PROCEDURE THE CHARGES WOULD NOT BE SEPARATELY LISTED TO PERMIT SUBMISSION OF THE TRANSPORTATION VOUCHERS TO THE GENERAL ACCOUNTING OFFICE FOR AUDIT AS PRESCRIBED IN 5 GAO 4060.10, BUT IN SUPPORT OF THE PROPOSAL HE URGES THAT THE COST OF CONVERTING COMMERCIAL BILLS OF LADING TO GOVERNMENT BILLS OF LADING AND THE RELATED COST OF ESTABLISHING AND LIQUIDATING ACCOUNTS PAYABLE FOR SUCH CHARGE IS MORE THAN ANY RECOVERIES THAT MIGHT BE MADE AS A RESULT OF A DETAILED RATE AUDIT OF SUCH BILLS. HOWEVER, HE PRESENTS NO EVIDENCE TO SUPPORT SUCH STATEMENT.

GENERAL ACCOUNTING OFFICE REGULATIONS (5 GAO 3010) REQUIRE THE USE OF U.S. GOVERNMENT BILL OF LADING FORMS FOR THE PROCUREMENT OF, AND BILLING FOR, FREIGHT OR EXPRESS TRANSPORTATION SERVICES BY RAIL, HIGHWAY, WATER OR AIR, FURNISHED FOR THE ACCOUNT OF THE UNITED STATES, EXCEPT AS OTHERWISE PROVIDED THEREIN OR AS SPECIFICALLY AUTHORIZED IN WRITING BY THE COMPTROLLER GENERAL OF THE UNITED STATES. ALSO, IN 5 GAO 3050, THE REGULATIONS, IN EFFECT, PROHIBIT THE SHIPMENT OF PROPERTY FOR THE ACCOUNT OF THE UNITED STATES ON COMMERCIAL BILLS OF LADING, WITH THE PROVISO, ,IF, HOWEVER, PROPERTY FOR THE ACCOUNT OF THE UNITED STATES UNAVOIDABLY MOVES ON A COMMERCIAL BILL OF LADING * * * THE WORDS "TO BE CONVERTED TO A GOVERNMENT BILL OF LADING" MUST BE PLACED ON THE ORIGINAL COMMERCIAL DOCUMENT AND ON ALL COPIES THEREOF IN A CONSPICUOUS MANNER.'

WHILE WE HAVE IN THE PAST ACQUIESCED IN THE WAIVER OF THE USE OF GOVERNMENT BILLS OF LADING IN CERTAIN INSTANCES, GENERALLY SUCH WAIVER HAS BEEN GRANTED AS TO SPECIFIC PROGRAMS ONLY UPON A SHOWING THAT THE ECONOMIES IN ADMINISTRATION UNDER COMMERCIAL BILLS OF LADING ARE MORE THAN SUFFICIENT TO OFFSET THE ADVANTAGES WHICH ACCRUE TO THE GOVERNMENT FROM THE USE OF GOVERNMENT BILLS OF LADING, OR THAT SPECIAL CIRCUMSTANCES IN A PARTICULAR PROPOSAL WARRANT THE WAIVER. OUR APPROVAL IS USUALLY LIMITED TO SMALL LOT SHIPMENTS CONFINED TO A SINGLE MODE OF TRANSPORTATION (MAINLY EXPRESS SHIPMENTS) WITH SPECIFIC MONEY OR WEIGHT LIMITATIONS.

IN THE PRESENT INSTANCE, ALTHOUGH YOUR REQUEST REFERS TO CEMENT SAMPLES, APPROVAL APPARENTLY IS SOUGHT TO APPLY THE EXEMPTION TO ALL OF THE SHIPPING ACTIVITIES OF THE NATIONAL BUREAU OF STANDARDS. THEREFORE, YOUR FIRST PROPOSAL IS SIMILAR TO THE FIRST SUGGESTION OF THE GENERAL SERVICES ADMINISTRATION WHICH WAS DISCUSSED BUT NOT FAVORABLY CONSIDERED IN OUR DECISION OF JANUARY 6, 1959, B-135157, 38 COMP. GEN. 462. ALSO, THE SECOND PROPOSAL APPEARS TO BE SIMILAR TO THE SECOND SUGGESTION REFERRED TO IN THAT DECISION WHICH WAS NOT ADOPTED FOR THE REASONS SET OUT ON PAGES 466 AND 467 OF THAT DECISION. ACCORDINGLY, THE REQUEST FOR A GENERAL EXCEPTION FROM 5 GAO 3050, AS PROPOSED, ON THE PRESENT RECORD MUST BE DENIED. HOWEVER, A PROPOSAL WITH RESPECT TO THE CEMENT SAMPLES SHIPPED FROM VARIOUS LOCATIONS IN THE UNITED STATES TO WASHINGTON, D.C., PROPERLY LIMITED AND JUSTIFIED, WILL BE GIVEN FURTHER CONSIDERATION AT YOUR REQUEST.

IN CONNECTION WITH THE USE OF COMMERCIAL BILLS OF LADING FOR THE TRANSPORTATION OF THESE SHIPMENTS, YOU MAY WISH TO GIVE CONSIDERATION TO THE LIABILITY OF YOUR CERTIFYING OFFICER IN CONNECTION WITH THE CERTIFICATION OF VOUCHERS FOR THIS TRANSPORTATION. THE RELIEF AFFORDED CERTIFYING AND DISBURSING OFFICERS BY THE ACT OF JUNE 1, 1942, 56 STAT. 306, 31 U.S.C. 82G, EXTENDS ONLY TO OVERPAYMENTS MADE FOR TRANSPORTATION FURNISHED "ON GOVERNMENT BILLS OF LADING OR TRANSPORTATION REQUESTS," AND, ACCORDINGLY, WOULD NOT BE PERTINENT WHERE A SHIPMENT IS TRANSPORTED ON A COMMERCIAL BILL OF LADING.