B-167038, JUN. 16, 1969

B-167038, JUN. 16, 1969

TO MR. SHERMAN R. KILLIAN:

WE REFER TO YOUR LETTER OF MAY 14, 1969, REQUESTING REVIEW OF OFFICE SETTLEMENT OF MAY 1, 1969, WHICH SUSTAINED THE ADMINISTRATIVE SETTLEMENT OF YOUR CLAIM FOR SUBSISTENCE WHILE OCCUPYING TEMPORARY QUARTERS UNDER SECTION 2.5 OF BUREAU OF THE BUDGET CIRCULAR NO. A-56, OCTOBER 12, 1966.

THE ADMINISTRATIVE OFFICE DETERMINED, IN ACCORDANCE WITH SECTION 2.5, THAT YOU WERE ENTITLED TO $730.51 BUT THAT SUCH AMOUNT WAS REQUIRED TO BE REDUCED BY THE TERRITORIAL COST-OF-LIVING ALLOWANCE TO WHICH YOU WERE ENTITLED AT THE TIME.

YOU POINT OUT THAT THE TOTAL AMOUNT SPENT BY YOU INCIDENT TO THE OCCUPANCY OF THE TEMPORARY QUARTERS WAS $1,146.11 AND THAT YOUR TERRITORIAL COST-OF-LIVING ALLOWANCE SHOULD HAVE BEEN DEDUCTED FROM THAT FIGURE ($1,146.11) RATHER THAN FROM THE $730.51 FIGURE, SINCE YOU FEEL THAT NO DUPLICATION OF BENEFITS WOULD OCCUR UNTIL YOU HAD RECEIVED THE FULL AMOUNT EXPENDED BY YOU LESS THE TERRITORIAL COST-OF LIVING ALLOWANCE OR $867.23.

TO ACKERMAN, STOCKLER AND BROWN:

REFERENCE IS MADE TO YOUR LETTER OF MAY 19, 1969, TO THE VETERANS ADMINISTRATION HOSPITAL, ALLEN PARK, MICHIGAN, COPY OF WHICH WAS TRANSMITTED TO OUR OFFICE BY THE VETERANS ADMINISTRATION, PROTESTING ON BEHALF OF OAKLAND AMBULANCE SERVICE, INCORPORATED, AGAINST THE PROPOSED AWARD OF A CONTRACT TO DIS-VET SERVICE COMPANY PURSUANT TO INVITATION FOR BIDS NO. 70-8, FOR AMBULANCE AND COMMERCIAL CAR SERVICE FOR THE PERIOD JULY 1, 1969, THROUGH JUNE 30, 1970.

BIDS WERE OPENED ON MAY 13, 1969, AND HAVE AN ACCEPTANCE PERIOD OF 60 DAYS. YOUR PROTEST INVOLVES THE AWARD OF GROUP B UNDER THE SUBJECT INVITATION. DIS-VET SERVICE COMPANY SUBMITTED A NET BID OF $6,456. YOUR CLIENT SUBMITTED A BID OF $6,618, LESS A PROMPT PAYMENT DISCOUNT OF THREE PERCENT FOR 10 DAYS AND TWO PERCENT FOR 20 DAYS IN THE SPACES PROVIDED IN BLOCK 16 OF STANDARD FORM 33. IF THE 10-DAY PROMPT PAYMENT DISCOUNT IS CONSIDERED IN THE EVALUATION OF BIDS YOUR CLIENT WILL BE THE LOW BIDDER. HOWEVER, THE CONTRACTING OFFICER IS OF THE OPINION THAT THE 10-DAY PROMPT PAYMENT DISCOUNT IS NOT PROPERLY FOR CONSIDERATION IN VIEW OF PARAGRAPH 9 OF STANDARD FORM 33A, ATTACHED TO

SECTION 2.5B (8) OF BUREAU OF THE BUDGET CIRCULAR NO. A-56 IS AS FOLLOWS:

"IN NO CASE SHALL SUBSISTENCE EXPENSES UNDER THESE PROVISIONS BE ALLOWED WHICH DUPLICATE IN WHOLE OR IN PART PAYMENTS RECEIVED UNDER OTHER LAWS OR REGULATIONS COVERING SIMILAR COSTS.'

YOU WILL NOTE THAT UNDER THE QUOTED PROVISION THE EXPENSES REFERRED TO ARE "SUBSISTENCE EXPENSES UNDER THESE PROVISIONS.' WE UNDERSTAND THAT $730.51 WAS THE MAXIMUM AMOUNT OF SUBSISTENCE EXPENSES OTHERWISE AUTHORIZED UNDER SECTION 2.5 OF THE REGULATIONS, AND SINCE THAT AMOUNT DUPLICATES IN PART SIMILAR COSTS -- SUBSISTENCE ITEMS -- RECEIVED AS TERRITORIAL COST-OF-LIVING ALLOWANCE, THE $278.88 IS REQUIRED TO BE DEDUCTED FROM THE $730.51 FIGURE TO DETERMINE THE AMOUNT ACTUALLY PAYABLE UNDER SECTION 2.5.

THE VIEW EXPRESSED IN OUR DECISIONS IS THAT THE SPECIFIC PROVISIONS OF SECTION 2.5B (8) OF CIRCULAR NO. A-56, QUOTED ABOVE, PROHIBIT THE CONCURRENT RECEIPT OF SUBSISTENCE FOR TEMPORARY QUARTERS AND ACOST-OF LIVING ALLOWANCE EACH OF WHICH INCLUDES ALL OR PART OF SIMILAR SUBSISTENCE COSTS. FOR YOUR INFORMATION WE ARE ENCLOSING COPIES OF DECISIONS OF DECEMBER 26, 1967, AND APRIL 29, 1968, B-162977.