B-133676, SEP. 12, 1957

B-133676: Sep 12, 1957

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TO MORTON PAINT COMPANY: REFERENCE IS MADE TO YOUR LETTER OF AUGUST 19. WHEREIN THERE WAS DISALLOWED YOUR CLAIM FOR 01/1.23. THE TERMS OF DISCOUNT WERE SPECIFIED TO BE 2 PERCENT. COMPUTED FROM THE DATE OF DELIVERY AT DESTINATION OR FROM DATE CORRECT INVOICE OR VOUCHER IS RECEIVED IN THE OFFICE SPECIFIED BY THE GOVERNMENT IF THE LATTER DATE IS LATER THAN THE DATE OF DELIVERY. THE RECORD BEFORE OUR OFFICE ESTABLISHES THAT THE SUPPLIES WERE INSPECTED AND ACCEPTED BY THE GOVERNMENT ON FEBRUARY 5. THAT YOUR INVOICE WAS RECEIVED ON FEBRUARY 18. WAS MADE ON FEBRUARY 20. YOU CONTEND THAT AN INVOICE WAS SUBMITTED ON JANUARY 3. OR PRIOR TO THE DATE OF RECEIPT OF THE SUPPLIES WHICH WERE SHIPPED FROM CHICAGO.

B-133676, SEP. 12, 1957

TO MORTON PAINT COMPANY:

REFERENCE IS MADE TO YOUR LETTER OF AUGUST 19, 1957, REQUESTING REVIEW OF SETTLEMENT CERTIFICATE DATED AUGUST 12, 1957, WHEREIN THERE WAS DISALLOWED YOUR CLAIM FOR 01/1.23, BEEN ERRONEOUSLY DEDUCTED ON VOUCHER NO. 2249-5, OF THE FEBRUARY 1957 ACCOUNTS OF E. H. HOFFMAN. THE VOUCHER EFFECTED PAYMENT OF YOUR INVOICE, LESS THE ALLEGED ERRONEOUS DEDUCTION OF DISCOUNT, FOR PAINT SPRAY GUNS FURNISHED TO MCCLELLAN AIR FORCE BASE, CALIFORNIA, UNDER PURCHASE ORDER NO. (04 606/57-7868, DATED DECEMBER 5, 1956.

THE TERMS OF DISCOUNT WERE SPECIFIED TO BE 2 PERCENT, 20 CALENDAR DAYS, COMPUTED FROM THE DATE OF DELIVERY AT DESTINATION OR FROM DATE CORRECT INVOICE OR VOUCHER IS RECEIVED IN THE OFFICE SPECIFIED BY THE GOVERNMENT IF THE LATTER DATE IS LATER THAN THE DATE OF DELIVERY. THE PURCHASE ORDER PROVIDED FOR THE SUBMISSION OF THE INVOICE TO THE FINANCE OFFICER, MCCELLAN AIR FORCE BASE, FOR PAYMENT, AND FOR FINAL INSPECTION AND ACCEPTANCE OF THE SUPPLIES AT DESTINATION.

THE RECORD BEFORE OUR OFFICE ESTABLISHES THAT THE SUPPLIES WERE INSPECTED AND ACCEPTED BY THE GOVERNMENT ON FEBRUARY 5, 1957; THAT YOUR INVOICE WAS RECEIVED ON FEBRUARY 18, 1957; AND THAT PAYMENT FOR THE SUPPLIES, LESS THE 2 PERCENT DISCOUNT, WAS MADE ON FEBRUARY 20, 1957, IN THE NET AMOUNT OF QQ,/6).Q5.

IN RECLAIMING THE DISCOUNT, YOU CONTEND THAT AN INVOICE WAS SUBMITTED ON JANUARY 3, 1957, OR PRIOR TO THE DATE OF RECEIPT OF THE SUPPLIES WHICH WERE SHIPPED FROM CHICAGO, ILLINOIS, ON JANUARY 11, 1957. YOU FURTHER STATE THAT THE INVOICE RECEIVED ON FEBRUARY 18 WAS AN ADDITIONAL INVOICE TO REPLACE THE ORIGINAL WHICH WAS EITHER LOST OR MISPLACED. HENCE, IT IS YOUR VIEW THAT THE DISCOUNT COULD HAVE BEEN EARNED ONLY IF THE GOVERNMENT PAID THE INVOICE WITHIN 20 DAYS AFTER DELIVERY OF THE SUPPLIES, STATED TO BE ABOUT JANUARY 21, 1957. IN THAT REGARD THERE IS NO EVIDENCE OF RECORD HERE SUBSTANTIATING SUCH CONTENTION. FURTHERMORE, THE DEPARTMENT OF THE AIR FORCE REPORTED ON JULY 28, 1957, THAT THE "MATERIAL WAS INSPECTED AND ACCEPTED 5 FEBRUARY 1957, AND VENDOR'S INVOICE WAS RECEIVED ON 18 FEBRUARY 1957.' NEITHER IS THERE ANYTHING OF RECORD WHICH WOULD INDICATE THAT AN INVOICE DATED JANUARY 3, 1957, WAS RECEIVED, AND LATER MISPLACED OR LOST, BY THE ORDERING AGENCY.

IN ANY EVENT, THE GOVERNMENT WAS OBLIGATED UNDER THE PURCHASE ORDER TO MAKE PAYMENT UPON THE SUBMISSION OF A PROPERLY CERTIFIED INVOICE FOR SUPPLIES "DELIVERED AND ACCEPTED, LESS DEDUCTIONS, IF ANY, AS HEREIN PROVIDED.'

ACCORDINGLY, SINCE PAYMENT ON YOUR INVOICE WAS MADE WITHIN THE STIPULATED DISCOUNT PERIOD, THE SETTLEMENT OF AUGUST 12, 1957, IS SUSTAINED.