A-83436, MARCH 8, 1937, 16 COMP. GEN. 828

A-83436: Mar 8, 1937

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THAT THE INVOICE "SHALL SHOW THE PRICE IN EFFECT AT THE PLACE AND TIME OF DELIVERY AND THE TOWN OR CITY WHERE SUCH PRICES ARE PUBLICLY POSTED. " A SHOWING ON INVOICES OF THE PRICE AT THE PLACE FROM WHICH DELIVERY IS MADE IS NOT A COMPLIANCE WITH SAID PROVISIONS UNLESS IT IS ALSO STATED TO BE THE PLACE AT WHICH THE "PLACE OF DELIVERY" PRICE IS PUBLICLY POSTED. THE ZONE WHERE THE DELIVERY IS MADE AS THE PLACE WHERE THERE ARE PUBLICLY POSTED THE CONTRACTOR'S COMMERCIAL CONSUMERS PRICES IN EFFECT AT THE PLACE OF DELIVERY. REQUESTING DECISION WHETHER PAYMENT IS AUTHORIZED ON A VOUCHER STATED IN FAVOR OF THE LOUISIANA OIL CORPORATION. YOUR LETTER IS. THERE IS INCLOSED HEREWITH A VOUCHER IN THE AMOUNT OF $159.65 IN FAVOR OF THE LOUISIANA OIL CORPORATION.

A-83436, MARCH 8, 1937, 16 COMP. GEN. 828

CONTRACTS - GASOLINE - INVOICE DELIVERY PRICE REQUIREMENTS WHERE A CONTRACT FOR GASOLINE PROVIDES THAT THE PRICE FOR INVOICING FOR TANK-WAGON OR DRUM DELIVERIES MUST BE THE CONTRACTOR'S "COMMERCIAL CONSUMERS PUBLICLY POSTED PRICES," LESS CERTAIN DISCOUNTS, ETC., AND THAT THE INVOICE "SHALL SHOW THE PRICE IN EFFECT AT THE PLACE AND TIME OF DELIVERY AND THE TOWN OR CITY WHERE SUCH PRICES ARE PUBLICLY POSTED," A SHOWING ON INVOICES OF THE PRICE AT THE PLACE FROM WHICH DELIVERY IS MADE IS NOT A COMPLIANCE WITH SAID PROVISIONS UNLESS IT IS ALSO STATED TO BE THE PLACE AT WHICH THE "PLACE OF DELIVERY" PRICE IS PUBLICLY POSTED, BUT NO OBJECTION NEED BE RAISED TO THE SHOWING OF ANY TOWN OR CITY WITHIN, OR REASONABLY ADJACENT TO, THE ZONE WHERE THE DELIVERY IS MADE AS THE PLACE WHERE THERE ARE PUBLICLY POSTED THE CONTRACTOR'S COMMERCIAL CONSUMERS PRICES IN EFFECT AT THE PLACE OF DELIVERY.

ACTING COMPTROLLER GENERAL ELLIOTT TO CAPT. M. F. W. OLIVER, UNITED STATES ARMY, MARCH 8, 1937:

THERE HAS BEEN RECEIVED BY INDORSEMENT FROM THE CHIEF OF FINANCE, YOUR LETTER OF DECEMBER 2, 1936, REQUESTING DECISION WHETHER PAYMENT IS AUTHORIZED ON A VOUCHER STATED IN FAVOR OF THE LOUISIANA OIL CORPORATION, SHREVEPORT, LA., IN THE AMOUNT OF $159.65, COVERING PURCHASES OF GASOLINE UNDER CONTRACT NO. TPS. 14119, DATED SEPTEMBER 14, 1936, AND PURCHASE ORDER NO. 5401-881, DATED OCTOBER 15, 1936.

YOUR LETTER IS, IN PERTINENT PART, AS FOLLOWS:

1. THERE IS INCLOSED HEREWITH A VOUCHER IN THE AMOUNT OF $159.65 IN FAVOR OF THE LOUISIANA OIL CORPORATION, SHREVEPORT, LOUISIANA, WHICH IS FORWARDED FOR ADVANCE DECISION AS TO THE PROPRIETY OF PAYMENT, FOR THE REASON THAT EACH INVOICE DOES NOT SHOW THE CITY WHERE THE BASE PRICE IS POSTED. ATTENTION IS INVITED TO PARAGRAPHS 4 AND 5 OF THE CONTRACT, AND TO THE FOLLOWING STATEMENTS ON PAGE 2 OF THE CONTRACT WHICH APPEAR TO BE IN CONFLICT THEREWITH, VIZ: "INVOICING IS CONTRACTOR'S COMMERCIAL CONSUMER TANK-WAGON PRICE, TIME AND PLACE OF DELIVERY AS POSTED AT CITY INDICATED FOR THE ITEM, LESS THE AMOUNT SHOWN IN COLUMN PROVIDED THEREFOR" AND THE CAPTION OF COLUMN 4 THEREUNDER WHICH READS,"CITY WHERE BASE PRICE IS POSTED.' IT IS THE OPINION OF THE UNDERSIGNED THAT AN INVOICE COVERING THE PURCHASE OF GASOLINE IN A PARTICULAR ZONE, SHOULD DEFINITELY SHOW THE POSTED TANK WAGON PRICE AT THE TOWN INDICATED IN COLUMN 4 PERTAINING TO THAT ZONE AND THE GRADE OF GASOLINE PURCHASED.

THE CLAUSE QUOTED IN YOUR LETTER AS APPEARING ON PAGE 2 OF THE CONTRACT IS NOT CONTAINED IN THE CONTRACT ON FILE IN THIS OFFICE, AND IT IS BELIEVED THAT YOU HAVE REFERENCE TO A "SCHEDULE OF CONTRACTS FOR TANK- WAGON DELIVERY IN THE STATE OF MISSISSIPPI," ISSUED BY THE PROCUREMENT DIVISION, TREASURY DEPARTMENT, AS A SUMMARY OF THE TERMS OF ALL CONTRACTS FOR GASOLINE AWARDED UNDER INVITATION NO. 5236-G FOR THE ITEMS TO BE DELIVERED IN MISSISSIPPI.

BY THE SAID INVITATION, ISSUED JULY 23, 1936, THE PROCUREMENT DIVISION OF THE TREASURY DEPARTMENT SOLICITED BIDS TO BE OPENED AUGUST 11, 1936, FOR THE FURNISHING OF GASOLINE AND FUEL OIL DURING THE PERIOD OCTOBER 1 TO DECEMBER 31, 1936, AS REQUIRED AND ORDERED BY VARIOUS GOVERNMENT ACTIVITIES IN REGION 2 COMPRISED OF ALABAMA, ARKANSAS, FLORIDA, GEORGIA, LOUISIANA, MISSISSIPPI, NORTH CAROLINA, SOUTH CAROLINA, TENNESSEE, AND VIRGINIA. EACH STATE WITHIN REGION 2 IS SUBDIVIDED INTO ZONES AS, FOR INSTANCE, MISSISSIPPI IS DIVIDED INTO 10 ZONES, EACH BEING COMPRISED OF CERTAIN COUNTIES WITHIN THE STATE. THE INVITATION (ALSO THE SUBJECT CONTRACT) CONSISTS OF UNITED STATES STANDARD FORM NO. 33, APPROVED MARCH 30, 1936, INVITATION, BID, AND ACCEPTANCE FORM) AND MIMEOGRAPH SCHEDULES NO. 1 AND NO. 2, ATTACHED THERETO. THE INVITATION SOLICITED BIDS FOR THREE GRADES OF GASOLINE DESCRIBED AS G-101, V-65, AND V-75, FOR DELIVERY TO ACTIVITIES WITHIN EACH STATE AND ZONE OF REGION 2. BID SCHEDULE NO. 2 CONTAINS A MIMEOGRAPH FORM WITH CERTAIN SPACES OR LINES LEFT BLANK FOR THE PURPOSE OF PROVIDING A SPACE OR SPACES WHEREIN THE BIDDERS COULD RECORD THEIR BIDS AND GIVE CERTAIN OTHER REQUESTED INFORMATION. THE EXECUTED PORTION OF THIS FORM RELATING TO MISSISSIPPI (WHICH IS SIMILAR TO THE PORTIONS RELATING TO THE OTHER STATES) UPON WHICH THE LOUISIANA OIL CORPORATION SUBMITTED ITS BID, APPEARS IN THE CONTRACT, IN PART AS FOLLOWS:

CHART

TANK WAGON AND/OR DRUM DELIVERIES

(PRICE BIDDING SHEET)

AMOUNT

TO BE

ESTIMATED TOWN OR CITY BRAND DEDUCTED MAXIMUM ITEM ZONE GRADE GALLONS WHERE BASE NAME FROM TANK PRICE PER

NO. FOR 3 PRICES ARE WAGON BASE GALLON

MONTHS POSTED PRICE

MISSISSIPPI (BASIS FOR MAXIMUM PRICES MUST BE CONTRACTOR'S COMMERCIAL CONSUMER TANK

WAGON PRICE) 62 1 G-101 63 1 V-65 88,168 CORINTH - -- LORECO 0.03 0.10 64 1 V-75 65 2 G-101 66 2 V-65 39,156 CALHOUN CITY LORECO .03 .10 67 2 V 75 68 3 G-101 69 3 V-65 70,000 PHILADELPHIA LORECO .03 .097 70 3 V-7571 4 G- 101

92,091 HATTIESBURGH LORECO .03 .095 72 4 V-65

2,500 HATTIESBURGH LORECO .03 .095 73 4 V-75

THE BID OF THE LOUISIANA OIL CORPORATION WAS ACCEPTED FOR ITEMS NO. 69 AND NO. 72, ALSO FOR ITEM NO. 15 OF ZONE 5 IN ALABAMA WHICH ITEM IS NOT INVOLVED HERE.

PARAGRAPH 4, PAGE 1, OF BID SCHEDULE NO. 2, INCORPORATED AS A PART OF THE CONTRACT, PROVIDES:

THE PRICE TO BE USED FOR INVOICING UNDER A CONTRACT FOR TANK WAGON AND/OR DRUM DELIVERIES OF GASOLINE MUST BE CONTRACTOR'S COMMERCIAL CONSUMERS PUBLICITY POSTED PRICES (LESS ALL TAXES--- SEE PAR. 2 OF SCHEDULE NO. 1) FOR THE PLACE AND TIME OF DELIVERY, PLUS OR MINUS THE SPECIFIED AMOUNT PER GALLON AS QUOTED IN THE ACCEPTED BID. IN NO EVENT WILL THE PRICE PAID EXCEED THE MAXIMUM PRICE QUOTED FOR THE ITEM. EACH INVOICE SHALL SHOW THE PRICE IN EFFECT, AT THE PLACE AND TIME OF DELIVERY, AND THE TOWN OR CITY WHERE SUCH PRICES ARE PUBLICLY POSTED.

THESE PROVISIONS OF THE CONTRACT REQUIRE ALL GASOLINE DELIVERED TO BE INVOICED AT THE CONTRACTOR'S PUBLICLY POSTED COMMERCIAL CONSUMER TANK WAGON PRICE IN EFFECT AT THE TIME AND PLACE OF DELIVERY, EXCLUSIVE OF ALL TAXES, AND LESS 3 CENTS PER GALLON, UNLESS SUCH NET PRICE BE HIGHER THAN THE MAXIMUM PRICE STATED IN THE CONTRACT. IN THE LATTER EVENT, THE CONTRACT REQUIRES THAT THE GASOLINE BE INVOICED AT THE MAXIMUM PRICE STATED IN THE CONTRACT. IN EITHER EVENT THE CONTRACT REQUIRES THAT EACH INVOICE SHOW THE CONTRACTOR'S PUBLICLY POSTED COMMERCIAL CONSUMER TANK WAGON PRICE FOR THE TIME AND PLACE OF DELIVERY AND THE TOWN OR CITY WHERE SUCH PRICES ARE PUBLICLY POSTED. THE PURPOSE OF THIS, OF COURSE, IS TO PROVIDE A READY MEANS FOR VERIFYING THE CORRECTNESS OF INVOICED PRICES.

IN A LETTER DATED NOVEMBER 23, 1936, ATTACHED TO THE VOUCHER SUBMITTED, THE CONTRACTOR MAKES THE FOLLOWING EXPLANATION OF ONE OF ITS INVOICES:

IN THE CASE OF INVOICE NO. 675435, THE GASOLINE BILLED THEREON WAS DELIVERED FROM OUR MERIDIAN, MISSISSIPPI, AGENCY, AT WHICH LOCATION THE COMMERCIAL CONSUMERS PRICE IS PUBLICLY POSTED. THEREFORE, WE HAVE SHOWN MERIDIAN, MISSISSIPPI, ON OUR INVOICE OPPOSITE "SHIPPING POINT," AND THE CERTIFICATION IN THE FACE OF THE INVOICE STATES THAT THE TANK WAGON PRICE OF LORECO GASOLINE IN EFFECT ON DATE AND AT PLACE OF DELIVERY WAS 13 CENTS PER GALLON, SUCH PRICE BEING THE COMMERCIAL CONSUMERS PUBLICLY POSTED PRICE AT MERIDIAN, MISSISSIPPI.

THIS IS NOT A COMPLIANCE WITH THE CONTRACT REQUIREMENTS. THE DELIVERY POINT OF THE GASOLINE COVERED BY THIS INVOICE WAS QUITMAN, MISS., AND THE BARE STATEMENT ON THE INVOICE OF "SHIPPING POINT--- MERIDIAN, MISSISSIPPI" CANNOT POSSIBLY BE VIEWED AS A STATEMENT THAT THE COMMERCIAL CONSUMER TANK -WAGON PRICE IN EFFECT AT QUITMAN, MISS., AT THE TIME OF DELIVERY WAS PUBLICLY POSTED AT MERIDIAN, MISS. WHAT THE CONTRACT REQUIRES AND WHAT THE DISBURSING AND ACCOUNTING OFFICERS ARE ENTITLED TO KNOW AS TO SUCH TRANSACTIONS IS NOT WHAT THE PRICE WAS AT MERIDIAN, BUT WHAT THE PRICE WAS AT QUITMAN AT THE TIME OF DELIVERY AND THE PLACE WHERE THE QUITMAN PRICE WAS PUBLICLY POSTED. THIS WAS A DELIVERY IN ZONE 3, AND THE CONTRACT SHOWS THAT PRICES FOR PLACES IN ZONE 3 ARE PUBLICLY POSTED AT PHILADELPHIA (MISS.), BUT THIS IS NOT A SHOWING ON THE INVOICE WHERE SUCH PRICES ARE POSTED, AS REQUIRED BY THE CONTRACT, SO THAT DISBURSING OFFICERS, WITHOUT THE CONTRACT BEFORE THEM, MAY BE IN A POSITION TO VERIFY THE CORRECTNESS OF THE INVOICE PRICES. IT IS NOTED FROM THE CONTRACTOR'S LETTER OF NOVEMBER 23, 1936, SUPRA, THAT THE CONTRACTOR MAY INTEND ITS CERTIFICATION TO RELATE TO THE PRICES IN EFFECT AT THE PLACE OF SHIPMENT AS DISTINGUISHED FROM THE PLACE OF DELIVERY. THIS, OBVIOUSLY, IS NOT IN ACCORDANCE WITH THE TERMS OF THE CONTRACT.

AS THE INVOICES ATTACHED TO THE VOUCHER DO NOT SHOW THE TOWN OR CITY WHERE THERE WAS PUBLICLY POSTED THE CONTRACTOR'S COMMERCIAL CONSUMER TANK- WAGON PRICE IN EFFECT AT THE PLACE AND TIME OF DELIVERY AS EXPRESSLY REQUIRED BY THE CONTRACT, PAYMENT ON THE VOUCHER IS NOT AUTHORIZED. THE INVOICES ARE CORRECTED TO SHOW SUCH TOWN OR CITY AND THE TOWN OR CITY SO SHOWN IS NOT THE TOWN OR CITY NAMED IN THE CONTRACT IN CONNECTION WITH THE ITEM INVOLVED, NO OBJECTION NEED BE RAISED PROVIDED THE TOWN OR CITY SO SHOWN ON EACH INVOICE IS WITHIN OR REASONABLY ADJACENT TO THE ZONE WHERE THE DELIVERY WAS MADE.