A-28947, OCTOBER 18, 1929, 9 COMP. GEN. 161

A-28947: Oct 18, 1929

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CONTRACTS - DISCOUNTS WHERE THE CONTRACT PROVIDED THAT PAYMENTS WERE TO BE MADE BY THE BUREAU OF SUPPLIES AND ACCOUNTS. THE RESPONSIBILITY OF SEEING THAT THE INVOICES WERE RECEIVED PROMPTLY BY THE BUREAU OR OFFICE OF THE GOVERNMENT SPECIFIED IN THE CONTRACT WAS THAT OF THE CONTRACTOR. ITS CONTENTION THAT THE DEDUCTION OF DISCOUNT FOR PROMPT PAYMENT SHOULD NOT HAVE BEEN MADE IN VIEW OF THE RESPECTIVE DATES THE INVOICES WERE RECEIVED AT THE OFFICE OF THE INSPECTOR OF NAVAL MATERIAL IN NEW YORK. IS NOT TENABLE. THE CONTRACTOR CONTENDS THAT THE GOVERNMENT IS NOT ENTITLED TO A DISCOUNT FROM THE CONTRACT PRICE FOR THE ARTICLES INASMUCH AS THE ORIGINAL INVOICES THEREFOR (FOUR IN NUMBER) WERE TRANSMITTED TO THE CONTRACTING OFFICER.

A-28947, OCTOBER 18, 1929, 9 COMP. GEN. 161

CONTRACTS - DISCOUNTS WHERE THE CONTRACT PROVIDED THAT PAYMENTS WERE TO BE MADE BY THE BUREAU OF SUPPLIES AND ACCOUNTS, NAVY DEPARTMENT, WASHINGTON, D.C., UPON PROPERLY CERTIFIED BILLS, AFTER INSPECTION AND ACCEPTANCE OF THE MATERIAL, THE RESPONSIBILITY OF SEEING THAT THE INVOICES WERE RECEIVED PROMPTLY BY THE BUREAU OR OFFICE OF THE GOVERNMENT SPECIFIED IN THE CONTRACT WAS THAT OF THE CONTRACTOR, AND ITS CONTENTION THAT THE DEDUCTION OF DISCOUNT FOR PROMPT PAYMENT SHOULD NOT HAVE BEEN MADE IN VIEW OF THE RESPECTIVE DATES THE INVOICES WERE RECEIVED AT THE OFFICE OF THE INSPECTOR OF NAVAL MATERIAL IN NEW YORK, N.Y., IS NOT TENABLE.

DECISION BY COMPTROLLER GENERAL MCCARL, OCTOBER 18, 1929:

THERE HAS BEEN PRESENTED TO THIS OFFICE FOR CONSIDERATION AND SETTLEMENT CLAIM OF THE STAR MACHINE MANUFACTURERS (INC.), IN THE SUM OF $70, AN AMOUNT PREVIOUSLY DEDUCTED AS DISCOUNT FOR PROMPT PAYMENT FOR BOMB RACKS FURNISHED UNDER GOVERNMENT CONTRACT NO. 8584, DATED JUNE 25, 1928.

THE CONTRACTOR CONTENDS THAT THE GOVERNMENT IS NOT ENTITLED TO A DISCOUNT FROM THE CONTRACT PRICE FOR THE ARTICLES INASMUCH AS THE ORIGINAL INVOICES THEREFOR (FOUR IN NUMBER) WERE TRANSMITTED TO THE CONTRACTING OFFICER, AS FOLLOWS: NO. 3155, JUNE 13, 1929; NO. 3157 JUNE 14, 1929; NO. 3163, JUNE 21, 1929; AND NO. 3166, JUNE 22, 1929, AND PAYMENT FOR THE SUPPLIES WAS NOT MADE UNTIL JULY 8, 1929.

ON JUNE 25, 1928, THE CLAIMANT AGREED BY CONTRACT NO. 8584, FOR AND IN CONSIDERATION OF $24,100 (LESS ONE-HALF OF 1 PERCENT--- 10 DAYS), TO FURNISH AND DELIVER CERTAIN BOMB RACKS AND MACHINE-GUN SIGHTS, F.O.B. SUPPLY OFFICE, NAVAL AIRCRAFT FACTORY, NAVY YARD, PHILADELPHIA, PA., IN ACCORDANCE WITH THE SPECIFICATIONS THEREFORE, AND THAT DELIVERY WOULD BE MADE WITHIN 180 DAYS AFTER DATE OF CONTRACT OR BUREAU ORDER. THE CONTRACT FURTHER PROVIDED THAT PAYMENTS WOULD BE MADE BY THE BUREAU OF SUPPLIES AND ACCOUNTS, NAVY DEPARTMENT, WASHINGTON, D.C., UPON PROPERLY CERTIFIED BILLS, AFTER INSPECTION AND ACCEPTANCE OF THE MATERIAL.

IN THE "SCHEDULE" ON WHICH BID WAS SUBMITTED BY THE CLAIMANT IT WAS PROVIDED THAT:

DISCOUNT: SUBJECT TO THE CONDITIONS SPECIFIED IN STANDARD GOVERNMENT FORM OF BID AND IN SPECIAL INSTRUCTIONS TO BIDDERS (S. AND A. FORM 466) ISSUED BY THE NAVY DEPARTMENT JANUARY 1, 1929, DISCOUNT WILL BE ALLOWED FOR PAYMENT WITHIN CALENDAR DAYS AS FOLLOWS: WITHIN 10 DAYS 1/2 OF PERCENT.

(TIME WILL BE COMPUTED FROM DATE OF THE DELIVERY OF THE SUPPLIES TO CARRIER WHEN FINAL INSPECTION AND ACCEPTANCE ARE AT POINT OF ORIGIN, OR FROM DATE OF DELIVERY AT DESTINATION OR PORT OF EMBARKATION WHEN FINAL INSPECTION AND ACCEPTANCE ARE AT THOSE POINTS, OR FROM DATE CORRECT BILL OR VOUCHER PROPERLY CERTIFIED BY THE CONTRACTOR IS RECEIVED IF THE LATTER DATE IS LATER THAN THE DATE OF DELIVERY.)

IT IS NOTED THAT THE TWO INVOICES ATTACHED TO VOUCHER NO. 1071, DATED JUNE 21 AND 22, 1929, WERE RECEIVED BY THE INSPECTOR OF NAVAL MATERIAL, SOUTH AND WHITEHALL STREETS, NEW YORK, N.Y., JUNE 22 AND 24, 1929, RESPECTIVELY, WHILE THE TWO INVOICES ATTACHED TO VOUCHER NO. 1072, DATED JUNE 13 AND 14, 1929, WERE RECEIVED BY THE SAME NAVAL INSPECTOR JUNE 17, 1929. IT APPEARS THAT THE SUPPLIES UNDER VOUCHER NO. 1071 WERE DELIVERED TO THE NAVAL AIRCRAFT FACTORY SUPPLY DEPARTMENT, PHILADELPHIA, JUNE 24, 1929, AND THE SUPPLIES UNDER VOUCHER NO. 1072 WERE DELIVERED JUNE 17, 1929.

THE TWO VOUCHERS WITH THE FOUR INVOICES ATTACHED (TWO TO EACH) WERE NOT RECEIVED AT THE NAVAL AIRCRAFT FACTORY SUPPLY DEPARTMENT, PHILADELPHIA, UNTIL 9:33 P.M., JUNE 28, 1929, NOR AT THE BUREAU OF SUPPLIES AND ACCOUNTS, NAVY DEPARTMENT, WASHINGTON, D.C., UNTIL JULY 6, 1929. PAYMENT WAS MADE ON JULY 8, 1929, AS HEREINBEFORE STATED.

THE CLAIMANT'S CONTENTION THAT DEDUCTION FOR PROMPT PAYMENT SHOULD NOT HAVE BEEN MADE IN VIEW OF THE RESPECTIVE DATES THE INVOICES WERE RECEIVED AT THE OFFICE OF THE INSPECTOR OF NAVAL MATERIAL IN NEW YORK CITY IS NOT TENABLE IN VIEW OF THE TERMS OF THE CONTRACT, WHICH PROVIDES THAT PAYMENTS WERE TO BE MADE BY THE BUREAU OF SUPPLIES AND ACCOUNTS, NAVY DEPARTMENT, WASHINGTON, C., UPON PROPERLY CERTIFIED BILLS AFTER INSPECTION AND ACCEPTANCE OF THE MATERIAL. THE RESPONSIBILITY OF SEEING THAT THE INVOICE WAS RECEIVED PROMPTLY BY THE BUREAU OR OFFICE OF THE GOVERNMENT SPECIFIED IN THE CONTRACT WAS THAT OF THE CONTRACTOR.

AS THE PAYMENT WAS MADE WITHIN 10 DAYS FROM THE DATE THE INVOICES WERE RECEIVED AT THE PROPER OFFICE, THE DEDUCTION OF THE DISCOUNT WAS LEGAL AND PROPER. SEE A-24456, DATED OCTOBER 4, 1928.