B-105277, SEP 25, 1951

B-105277: Sep 25, 1951

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

REFERENCE IS MADE TO YOUR REQUEST OF JUNE 28. RATE WILL BE COMPUTED BY ALLOWING. ONE-THIRTIETH (1/30) OF THE MONTHLY RATE FOR EACH DAY THAT THE VESSELS WERE UNDER THE CONTROL OF THE RECEIVING OFFICER.". THE SPECIAL PROVISION IN THE INSTANT CONTRACT CLEARLY MANIFESTS AGREEMENT THAT RENTAL FOR "PERIODS OF LESS THAN ONE MONTH" IS TO BE COMPUTED ON THE BASIS OF A DAILY RATE - FIXED AT (1/30) OF THE MONTHLY RATE - REGARDLESS OF THE MONTH OR THE NUMBER OF DAYS THEREIN. THE FOUR QUESTIONS SUBMITTED ARE ANSWERED AS FOLLOWS: QUESTIONS "A. PERIOD OF SERVICE WAS FROM 21 JANUARY THRU 31 JANUARY. "B. PERIOD OF SERVICE WAS FROM 11 FEBRUARY THRU 28 FEBRUARY. "C. PERIOD OF SERVICE WAS FROM 1 MARCH THRU 30 MARCH.

B-105277, SEP 25, 1951

PRECIS-UNAVAILABLE

E.E. ENGER, COLONEL, F.D.

REFERENCE IS MADE TO YOUR REQUEST OF JUNE 28, 1951, FOR AN ADVANCE DECISION AS TO THE PROPER METHOD OF COMPUTING RENTAL FOR PERIODS OF LESS THAN ONE MONTH UNDER THE TERMS OF CONTRACT NO. DA-92-502-FEC-4080, DATED JANUARY 4, 1950, WITH TOHZAI STEAMSHIP COMPANY, LTD., FOR THE FURNISHING AND OPERATING OF CERTAIN POWERED BARGES.

THE CONTRACT, AFTER FIXING A RATE OF $2.98 PER MEASUREMENT TON PER MONTH, PROVIDES, IN PARAGRAPH 1 OF THE SCHEDULE OF REQUIREMENTS, THAT "FOR PERIODS OF LESS THAN ONE MONTH, RATE WILL BE COMPUTED BY ALLOWING, AND PAYING TO THE CONTRACTOR, ONE-THIRTIETH (1/30) OF THE MONTHLY RATE FOR EACH DAY THAT THE VESSELS WERE UNDER THE CONTROL OF THE RECEIVING OFFICER."

UNCERTAINTY CONCERNING THE CONSTRUCTION OF THIS PROVISION APPEARS TO BE CAUSED BY THE FACT THAT CHARTER CONTRACTS USUALLY CONTAIN A MONTHLY RATE, NECESSITATING COMPUTATION OF CHARGES FOR PERIODS OF LESS THAN ONE MONTH ON THE BASIS OF A FRACTION OF THE ACTUAL NUMBER OF DAYS IN THE PARTICULAR MONTH INVOLVED. SEE 22 COMP. GEN. 599. HOWEVER, THE SPECIAL PROVISION IN THE INSTANT CONTRACT CLEARLY MANIFESTS AGREEMENT THAT RENTAL FOR "PERIODS OF LESS THAN ONE MONTH" IS TO BE COMPUTED ON THE BASIS OF A DAILY RATE - FIXED AT (1/30) OF THE MONTHLY RATE - REGARDLESS OF THE MONTH OR THE NUMBER OF DAYS THEREIN.

ON THE BASIS OF SUCH AGREEMENT, THE FOUR QUESTIONS SUBMITTED ARE ANSWERED AS FOLLOWS:

QUESTIONS

"A. PERIOD OF SERVICE WAS FROM 21 JANUARY THRU 31 JANUARY; SHOULD CREDIT BE FOR 10/30TH'S OR 11/30TH'S OF THE MONTHLY RATE?

"B. PERIOD OF SERVICE WAS FROM 11 FEBRUARY THRU 28 FEBRUARY; SHOULD CREDIT BE FOR 18/30TH'S OR 20/30TH'S OF THE MONTHLY RATE?

"C. PERIOD OF SERVICE WAS FROM 1 MARCH THRU 30 MARCH. BARGE IN SERVICE FOR 30 DAYS BUT NOT ENTIRE MONTH; SHOULD CREDIT BE ALLOWED FOR FULL MONTHLY RATE (30/30TH'S)?

"D. PERIOD OF SERVICE WAS FROM 2 MARCH THRU 31 MARCH; SHOULD CREDIT BE FOR 29/30TH'S OR FULL MONTHLY RATE?"

ANSWERS

(A) 11/30THS OF THE MONTHLY RATE.

(B) 18/30THS OF THE MONTHLY RATE.

(C) YES. THE FULL MONTHLY RATE WAS EARNED (30/30THS).

(D) THE FULL MONTHLY RATE WAS EARNED (30/30THS).

THE THREE VOUCHERS SUBMITTED WITH YOUR REQUEST ARE RETURNED HEREWITH. OTHERWISE CORRECT, THEY MAY BE PAID IN AMOUNTS COMPUTED IN ACCORDANCE WITH THE FOREGOING.