B-169876, NOV 20, 1972
Highlights
WHICH WAS PAID ON YOUR CLAIM ARISING FROM THE BILLETING OF MILITARY PERSONNEL AT THE MADISON PARK HOTEL UNDER DEPARTMENT OF THE ARMY CONTRACT NO. THE GOVERNMENT IS OBLIGATED TO PAY INTEREST FROM THE DATE ON WHICH A DEBT IS DUE UNTIL THAT DEBT IS PAID.
B-169876, NOV 20, 1972
CONTRACTS - INTEREST ON CLAIMS DECISION AFFIRMING DENIAL OF PAYMENT OF INTEREST ON A SUM PAID TO GREEN & GREEN ON A CLAIM ARISING FROM THE BILLETING OF MILITARY PERSONNEL AT THE MADISON PARK HOTEL, CHICAGO, ILL. UNDER A CONTRACT OF THE DEPARTMENT OF THE ARMY. PARAGRAPH 28 OF THE ADDITIONAL GENERAL PROVISIONS IN THE CONTRACT PROVIDES ONLY FOR PAYMENT OF INTEREST "BY THE CONTRACTOR" ON MONIES OWED TO THE GOVERNMENT AND DOES NOT PROVIDE FOR PAYMENT OF INTEREST BY THE GOVERNMENT.
TO GREEN & GREEN:
WE REFER TO YOUR LETTER OF OCTOBER 16, 1972, REQUESTING PAYMENT OF INTEREST ON THE SUM OF $9,418.25, WHICH WAS PAID ON YOUR CLAIM ARISING FROM THE BILLETING OF MILITARY PERSONNEL AT THE MADISON PARK HOTEL UNDER DEPARTMENT OF THE ARMY CONTRACT NO. DA-11-074-AV-4392-SD.
ALTHOUGH WE DENIED YOUR CLAIM FOR INTEREST BY LETTER B-169876, DATED AUGUST 11, 1970, YOU CONTEND THAT UNDER THE CONTRACT WITH THE ARMY, SPECIFICALLY PARAGRAPH 28 OF THE ADDITIONAL GENERAL PROVISIONS, THE GOVERNMENT IS OBLIGATED TO PAY INTEREST FROM THE DATE ON WHICH A DEBT IS DUE UNTIL THAT DEBT IS PAID.
PARAGRAPH 28 OF THE ADDITIONAL GENERAL PROVISIONS PROVIDES ONLY FOR PAYMENT OF INTEREST "BY THE CONTRACTOR" ON MONIES OWED TO THE GOVERNMENT. PARAGRAPH 28 DOES NOT PROVIDE FOR PAYMENT OF INTEREST BY THE GOVERNMENT AND THEREFORE INTEREST MAY NOT BE PAID AS REQUESTED.