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Rates API does not work

I had a developer implement the API for rates. He is not much help in debugging, so I have to try it myself. He sends the following query:

Array
(
[origin_country_alpha2 ] => US
[origin_state] => California
[origin_postal_code] => 95014
[destination_country_alpha2] => US
[destination_city] => Houston
[destination_state] => TX
[destination_address_line_1] => 3335 Ashfield Dr
[destination_postal_code] => 77082
[taxes_duties_paid_by] => Receiver
[is_insured] =>
[items] => Array
(
[0] => Array
(
[actual_weight] => 3
[height] => 2.8
[width] => 4.5
[length] => 6.5
[category] => accessory_no_battery
[declared_currency] => USD
[declared_customs_value] => 16
[quantity] => 30
)

    )

[output_currency] => USD
[apply_shipping_rules] => 1
[box] => Array
    (
        [length] => 10
        [width] => 17.7
        [height] => 5
    )

[total_actual_weight] => 3.07

If the total_actual_weight is less than about 0.3Kg, rates are calculated correctly.
For anything over that, the response is always $7.99.
For the example above, the USPS First Class rate should be about $25.
The system responds with $7.99.

Any help would be greatly appreciated.