B-113708, APR 1, 1953
Highlights
IN YOUR LETTER IT WAS STATED THAT THE INVOICES ON WHICH THE DISCOUNT IN QUESTION. " WAS TAKEN WERE SUBMITTED TO THE CONTRACTING OFFICER ON AUGUST 20. THAT THE DEFINITIVE CONTRACT WAS NOT APPROVED UNTIL AUGUST 31. THAT THE INVOICES INVOLVED WERE DELIVERED TO YOUR OFFICE BY A REPRESENTATIVE OF THE COMPANY ON SEPTEMBER 5. THAT PAYMENT WAS MADE THEREON ON SEPTEMBER 6. THAT OFFICIAL STATED THAT THE DELAY IN PROCESSING AND FORWARDING THE INVOICES FOR PAYMENT WAS BECAUSE YOUR OFFICE HAD NOT YET SECURED THE DEFINITIVE CONTRACT AND THEREFORE WAS NOT IN A POSITION TO VERIFY THE UNIT PRICES CHARGED BY THE CONTRACTOR. EXAMINATION OF THE INVOICES SHOWS THAT NOT ANY OF THE ITEMS BILLED THEREON WERE DELIVERED SUBSEQUENT TO AUGUST 20.
B-113708, APR 1, 1953
PRECIS-UNAVAILABLE
LIEUTENANT COLONEL G.F. WANDRES, USAF:
THERE HAS BEEN CONSIDERED YOUR LETTER OF JULY 28, 1952, FORWARDED TO THIS OFFICE WITH LETTER DATED FEBRUARY 4, 1953, FROM THE DIRECTOR OF FINANCE, REQUESTING AN ADVANCE DECISION AS TO WHETHER PAYMENT PROPERLY MAY BE MADE ON A VOUCHER ENCLOSED THEREWITH IN FAVOR OF VARE MANUFACTURING COMPANY, INC., IN THE AMOUNT OF $1,096.73 FOR A REFUND OF A CASH DISCOUNT TAKEN BY THE GOVERNMENT UNDER CONTRACT NO. AF 33(038) 19619 DATED JUNE 21, 1951, AND APPROVED AUGUST 31, 1951.
IN YOUR LETTER IT WAS STATED THAT THE INVOICES ON WHICH THE DISCOUNT IN QUESTION, "1/2% TEN DAYS," WAS TAKEN WERE SUBMITTED TO THE CONTRACTING OFFICER ON AUGUST 20, 1951; THAT THE DEFINITIVE CONTRACT WAS NOT APPROVED UNTIL AUGUST 31, 1951; THAT THE INVOICES INVOLVED WERE DELIVERED TO YOUR OFFICE BY A REPRESENTATIVE OF THE COMPANY ON SEPTEMBER 5, 1951; AND THAT PAYMENT WAS MADE THEREON ON SEPTEMBER 6, 1951. IT FURTHER APPEARS FROM YOUR LETTER THAT, IN A DISCUSSION WITH THE CONTRACTING OFFICER CONCERNING PAYMENT OF THE INVOICES, THAT OFFICIAL STATED THAT THE DELAY IN PROCESSING AND FORWARDING THE INVOICES FOR PAYMENT WAS BECAUSE YOUR OFFICE HAD NOT YET SECURED THE DEFINITIVE CONTRACT AND THEREFORE WAS NOT IN A POSITION TO VERIFY THE UNIT PRICES CHARGED BY THE CONTRACTOR.
BY LETTER DATED SEPTEMBER 19, 1951, THE CLAIMANT REQUESTED PAYMENT OF THE ENCLOSED INVOICE NO. 926 DATED SEPTEMBER 19, 1951, IN THE AMOUNT OF $1,096.73, REPRESENTING 1/2 PERCENT 10 DAYS DISCOUNT, DEDUCTED ON D.O. VOUCHER NO. 2864, IN YOUR SEPTEMBER 1951 ACCOUNT, COVERING PAYMENT OF THE ORIGINAL INVOICES IN QUESTION.
EXAMINATION OF THE INVOICES SHOWS THAT NOT ANY OF THE ITEMS BILLED THEREON WERE DELIVERED SUBSEQUENT TO AUGUST 20, 1951, THE DATE THE INVOICES WERE SUBMITTED TO THE CONTRACTING OFFICER. IN VIEW THEREOF, AND SINCE APPARENTLY THE FAILURE TO PAY THE INVOICES WITHIN TEN DAYS FROM AND AFTER THAT DATE WAS NOT ATTRIBUTABLE TO THE CONTRACTOR, THE DISCOUNT WAS NOT EARNED. ACCORDINGLY, THERE APPEARS NO LEGAL OBJECTION TO REFUNDING THE DISCOUNT AS PROPOSED ON THE VOUCHER SUBMITTED WITH YOUR LETTER.
THE VOUCHER AND ITS ACCOMPANYING PAPERS, WITH THE EXCEPTION OF THE LETTERS DATED JULY 28, 1952, AND FEBRUARY 4, 1953, ARE RETURNED HEREWITH.