B-106702, JANUARY 9, 1952, 31 COMP. GEN. 260

B-106702: Jan 9, 1952

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CONTRACTS - DISCOUNTS - COMPUTATION OF DISCOUNT PERIOD WHERE CONTRACT FOR FURNISHING LAUNDRY AND DRY CLEANING SERVICES CONTAINS PROVISION THAT TIME IN CONNECTION WITH 10-DAY DISCOUNT PERIOD OFFERED WILL BE COMPUTED EITHER FROM DATE OF DELIVERY OR RENDITION OF SERVICES OF FROM DATE CORRECT AND PROPERLY CERTIFIED INVOICES ARE RECEIVED. WHICHEVER IS THE LATER. THE DATE OF ISSUANCE OF THE CHECKS RATHER THAN THE DATE CHECKS ARE RECEIVED BY THE CONTRACTOR. IS TO BE CONSIDERED AS THE DATE OF PAYMENT. 1952: REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 10. WAS MAILED BY YOU ON OCTOBER 6. WHEREAS CHECK IN PAYMENT THEREFOR WAS NOT RECEIVED BY YOU UNTIL OCTOBER 27. COVERING LAUNDRY SERVICES FOR THE MONTH OF OCTOBER OF THAT YEAR WAS NOT RECEIVED BY YOU UNTIL DECEMBER 4.

B-106702, JANUARY 9, 1952, 31 COMP. GEN. 260

CONTRACTS - DISCOUNTS - COMPUTATION OF DISCOUNT PERIOD WHERE CONTRACT FOR FURNISHING LAUNDRY AND DRY CLEANING SERVICES CONTAINS PROVISION THAT TIME IN CONNECTION WITH 10-DAY DISCOUNT PERIOD OFFERED WILL BE COMPUTED EITHER FROM DATE OF DELIVERY OR RENDITION OF SERVICES OF FROM DATE CORRECT AND PROPERLY CERTIFIED INVOICES ARE RECEIVED, WHICHEVER IS THE LATER, THE DATE OF ISSUANCE OF THE CHECKS RATHER THAN THE DATE CHECKS ARE RECEIVED BY THE CONTRACTOR, IS TO BE CONSIDERED AS THE DATE OF PAYMENT.

COMPTROLLER GENERAL WARREN TO THE ROYCE-SUPERIOR LAUNDRY, INC., JANUARY 9, 1952:

REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 10, 1951, WHEREIN YOU REQUEST REVIEW OF THAT PORTION OF OFFICE SETTLEMENT DATED NOVEMBER 5, 1951, WHICH DISALLOWED $280.38 OF YOUR TOTAL CLAIM OF $1,155.42 COVERING REFUNDS OF DISCOUNT DEDUCTED IN MAKING PAYMENTS TO YOU FOR LAUNDRY AND DRY CLEANING SERVICES RENDERED THE WESTOVER AIR FORCE BASE, MASSACHUSETTS, PURSUANT TO CONTRACTS NOS. AF 19/032/-78, AF 19/032/-93, AND AF 19/032/- 241, DATED JUNE 30, 1949, OCTOBER 4, 1949, AND JUNE 30, 1950, RESPECTIVELY.

THE ITEMS HERE IN CONTROVERSY REPRESENT THE DISCOUNTS TAKEN ON D.O. VOUCHERS 8965 AND 11230 PAID OCTOBER 18 AND NOVEMBER 15, 1950, BY DISBURSING OFFICER H. J. HERRICK FOR LAUNDRY SERVICES RENDERED THE WESTOVER AIR FORCE BASE DURING THE MONTHS OF SEPTEMBER AND OCTOBER, 1950, AS ITEMIZED ON DELIVERY ORDERS NOS. 51-1139 AND 51-1504.

YOU CONTEND THAT YOUR INVOICE FOR THE MONTH OF SEPTEMBER, 1950, WAS MAILED BY YOU ON OCTOBER 6, WHEREAS CHECK IN PAYMENT THEREFOR WAS NOT RECEIVED BY YOU UNTIL OCTOBER 27, 1950, OR 21 DAYS LATER; ALSO, THAT PAYMENT ON YOUR INVOICE OF NOVEMBER 3, 1950, COVERING LAUNDRY SERVICES FOR THE MONTH OF OCTOBER OF THAT YEAR WAS NOT RECEIVED BY YOU UNTIL DECEMBER 4, 1950, OR AFTER EXPIRATION OF THE 10-DAY DISCOUNT PERIOD SPECIFIED IN THE CONTRACT. IN SUBSTANTIATION OF YOUR CONTENTION, YOU REFER TO THE "BANK DEPOSIT STAMP" APPEARING ON THE REVERSE OF EACH CANCELED CHECK ISSUED IN PAYMENT FOR THESE SERVICES.

THE DISCOUNT CLAUSE OF THE CONTRACT, AS RECITED IN ARTICLE 2 OF THE CONDITIONS THEREOF, EXPRESSLY PROVIDED THAT THE TIME IN CONNECTION THEREWITH WAS TO HAVE BEEN COMPUTED EITHER FROM DATE OF DELIVERY OR RENDITION OF THE SERVICES, OR FROM DATE OF RECEIPT OF YOUR CORRECT AND PROPERLY CERTIFIED INVOICE, WHICHEVER WAS LATER.

THE RECORDS BEFORE THIS OFFICE DISCLOSE THAT YOUR INVOICE OF OCTOBER 6, 1950, COVERING LAUNDRY AND DRY CLEANING SERVICES FOR THE PRECEDING MONTH, WAS RECEIVED IN THE PURCHASING AND CONTRACTING OFFICE OF THE WESTOVER AIR FORCE BASE ON OCTOBER 9, 1950, AND THAT CHECK IN PAYMENT FOR THOSE SERVICES WAS ISSUED ON OCTOBER 18, 1950, OR WITHIN 9 DAYS FROM DATE OF RECEIPT OF YOUR INVOICE. SIMILARLY, THE RECORD ESTABLISHES THAT YOUR INVOICE OF NOVEMBER 3, 1950, WAS RECEIVED IN THE PURCHASING OFFICE ON NOVEMBER 6, AFTER WHICH CHECK IN PAYMENT THEREFOR WAS ISSUED ON NOVEMBER 15, 1950, OR WELL WITHIN THE 10-DAY DISCOUNT PERIOD SPECIFIED.

IN CASES OF THIS NATURE, THE COURTS AND THIS OFFICE HAVE HELD THAT THE DATE OF ISSUANCE OF A GOVERNMENT CHECK CONSTITUTES THE DATE OF PAYMENT. SEE LLOYD-SMITH V. UNITED STATES, 71 C.1CLS. 74, 80; AMERICAN POTASH CO. V. UNITED STATES, 80 ID. 160, 165; MORGENTHAU ET AL. V. FIDELITY AND DEPOSIT CO. OF MARYLAND, 94 F.2D 632; 18 COMP. GEN. 155.

IN VIEW OF THE ESTABLISHED RULE PREVAILING IN THESE MATTERS AND THE REPORT OF THE ADMINISTRATIVE OFFICE AS TO THE DATES THE CHECKS IN QUESTION WERE ISSUED, IT WOULD APPEAR THAT THE DISCOUNTS WERE PROPERLY TAKEN IN MAKING PAYMENTS.