B-126624, JAN. 31, 1956

B-126624: Jan 31, 1956

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FARM CREDIT ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTER OF JANUARY 12. REQUESTING AN ADVANCE DECISION AS TO WHETHER PAYMENT IS AUTHORIZED ON AN UNNUMBERED VOUCHER IN FAVOR OF THE ALLIED RECORD MANUFACTURING COMPANY. WAS ISSUED TO THE MOTION PICTURE SERVICE. WAS ISSUED TO THE ALLIED RECORD MANUFACTURING COMPANY FOR PROCESSING OF THESE MASTERS AND MAKING OF PRESSINGS UNDER FEDERAL SUPPLY CONTRACT GS-09S 995. THE MASTERS WERE NOT COMPLETED BY THE MOTION PICTURE SERVICE UNTIL SEPTEMBER 26. AT WHICH TIME CONTRACT GS-09S-160 WAS IN EFFECT. $95.97 WAS SUSPENDED FROM THE INVOICE ON THE BASIS THAT PURCHASE ORDER 339 -FCA-55 DATED APRIL 1. WAS INADVERTENTLY ISSUED AT THE SAME TIME AS THE ORDER FOR THE RECORDING OF THE ACETATE MASTERS AND SINCE THE MASTERS WERE NOT COMPLETED UNTIL SEPTEMBER 26.

B-126624, JAN. 31, 1956

TO MR. J. L. WILKINSON, AUTHORIZED CERTIFYING OFFICER, FARM CREDIT ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER OF JANUARY 12, 1956, WITH ENCLOSURES, REQUESTING AN ADVANCE DECISION AS TO WHETHER PAYMENT IS AUTHORIZED ON AN UNNUMBERED VOUCHER IN FAVOR OF THE ALLIED RECORD MANUFACTURING COMPANY, COVERING RECLAIM OF $95.97 WITHHELD IN MAKING PAYMENT FOR PROCESSING OF ACETATE MASTERS AND MAKING OF PRESSINGS PURPORTEDLY UNDER FEDERAL SUPPLY CONTRACT GS-09S-995.

CONTRACT NO. GS-09S-995 COVERS RECORDING AND TRANSCRIPTION SERVICE AT CERTAIN SPECIFIED PRICES AS ORDERED DURING THE PERIOD BEGINNING JUNE 1, 1954, AND ENDING MAY 31, 1955; AND CONTRACT NO. GS-09S-160 COVERS THE SAME TYPE OF WORK AT CERTAIN SPECIFIED PRICES AS ORDERED DURING THE PERIOD BEGINNING SEPTEMBER 1, 1955, AND ENDING AUGUST 31, 1956.

THE RECORD INDICATES THAT PURCHASE ORDER 338-FC-55 DATED MARCH 31, 1955, WAS ISSUED TO THE MOTION PICTURE SERVICE, DEPARTMENT OF AGRICULTURE, TO COVER RE-RECORDING OF 26 RADIO PROGRAMS ON ACETATE MASTERS. PURCHASE ORDER 339-FCA-55, DATED APRIL 1, 1955, WAS ISSUED TO THE ALLIED RECORD MANUFACTURING COMPANY FOR PROCESSING OF THESE MASTERS AND MAKING OF PRESSINGS UNDER FEDERAL SUPPLY CONTRACT GS-09S 995. HOWEVER, THE MASTERS WERE NOT COMPLETED BY THE MOTION PICTURE SERVICE UNTIL SEPTEMBER 26, 1955, AND NOT SHIPPED TO THE CONTRACTOR UNTIL OCTOBER 4, 1955, AT WHICH TIME CONTRACT GS-09S-160 WAS IN EFFECT, AT LOWER PRICES. THE CONTRACTOR SUBMITTED ITS INVOICE NO. 125-99-G FOR THE COMPLETED WORK AT PRICES PREVAILING UNDER CONTRACT GS-09S 995. BY NOTICE DATED DECEMBER 22, 1955, $95.97 WAS SUSPENDED FROM THE INVOICE ON THE BASIS THAT PURCHASE ORDER 339 -FCA-55 DATED APRIL 1, 1955, WAS INADVERTENTLY ISSUED AT THE SAME TIME AS THE ORDER FOR THE RECORDING OF THE ACETATE MASTERS AND SINCE THE MASTERS WERE NOT COMPLETED UNTIL SEPTEMBER 26, 1955, THE ORIGINAL ORDER 339-FCA-55 SHOULD HAVE BEEN CANCELED AND A NEW ORDER ISSUED AT THE LOWER RATES IN EFFECT UNDER THE LATER CONTRACT.

IN A LETTER DATED JANUARY 5, 1956, THE SUSPENDED AMOUNT WAS RECLAIMED BY THE CONTRACTOR, WHICH CONTENDED THAT INSTRUCTIONS RECEIVED FROM MR. W. CIFFORD HOAG, RESEARCH AND INFORMATION DIVISION OF FARM CREDIT ADMINISTRATION, WERE SPECIFIC AS TO COMPLETION OF PURCHASE ORDER 339-FCA- 55 DATED APRIL 1, 1955, AND THAT IF A CHANGE HAD BEEN CONTEMPLATED, THE CONTRACTOR SHOULD HAVE RECEIVED A CANCELLATION OF THE PURCHASE ORDER BEFORE PUTTING THE WORK IN PROCESS.

THE ORDER IN THIS INSTANCE WAS PLACED ON APRIL 1, 1955, SO THAT IT APPEARS THAT THIS DATE DETERMINES THE RIGHTS AND LIABILITIES OF THE PARTIES IN CONNECTION WITH THE TRANSACTION HERE INVOLVED. THERE IS NO QUESTION BUT THAT THE ORDER AND ITS ACCEPTANCE TOOK PLACE WITHIN THE PERIOD COVERED BY CONTRACT GS-09S-995, WHICH FIXED THE PRICES TO BE CHARGED. IN THE INSTANT CASE IT WAS NO FAULT OF THE CONTRACTOR THAT THE MASTERS WERE NOT DELIVERED UNTIL AFTER THE EXPIRATION OF CONTRACT GS-09S- 995. THE RECORD SHOWS THAT THE MOTION PICTURE SERVICE CAUSED THE DELAY IN THAT THE ACETATE MASTERS WERE NOT DELIVERED TO THE CONTRACTOR UNTIL OCTOBER 4, 1955. THE OBLIGATION TO PERFORM UNDER THE PURCHASE ORDER AS ISSUED AROSE ON APRIL 1, 1955, WHEN THE CONTRACTOR RECEIVED THE PURCHASE ORDER. WHILE IT MAY BE, AS STATED IN YOUR LETTER, THAT THE ORIGINAL PURCHASE ORDER COULD HAVE BEEN CANCELED AND A NEW ORDER ISSUED AT THE TIME THE MASTERS WERE COMPLETED, THIS WAS NOT DONE AND, IF IT HAD BEEN, THE CONTRACTOR WOULD HAVE BEEN ENTITLED TO ANY COSTS INCURRED IN CONNECTION WITH THE ORIGINAL PURCHASE ORDER.

THEREFORE, WE ARE OF THE OPINION THAT PURCHASE ORDER NO. 339-FCA-55 WAS EFFECTIVE UPON ITS RECEIPT BY THE CONTRACTOR AND THAT THE PRICE THEN IN EFFECT SHOULD PREVAIL, REGARDLESS OF THE FACT THAT DELIVERY WAS NOT MADE UNTIL AFTER THE EFFECTIVE DATE OF THE LOWER PRICES PROVIDED IN CONTRACT GS -09S-160.

ACCORDINGLY, OUR OFFICE WILL INTERPOSE NO OBJECTION TO THE PAYMENT OF ALLIED RECORD MANUFACTURING COMPANY OF THE AMOUNT WITHHELD FROM PAYMENT FOR THE WORK PERFORMED.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE VOUCHER.

THE PAPERS, WITH THE EXCEPTION OF THE CONTRACTOR'S LETTER OF JANUARY 5, 1956, ARE RETURNED.