B-135440, MAR. 27, 1958

B-135440: Mar 27, 1958

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YOU STATE THAT YOU HAVE BEEN RECEIVING PARTIAL PAYMENT FROM 99 PERCENT OF THE INSTALLATIONS WHICH USE A SIMILAR CONTRACT FORM. THAT PROMPT PAYMENT DISCOUNT IS ALWAYS JUDGED FROM THE RECEIPT OF THE MERCHANDISE OR THE INVOICE. WHICHEVER IS LATER. THAT AT NO TIME HAVE YOU HAD TO ALLOW A PROMPT PAYMENT DISCOUNT UNTIL THE ORDER WAS COMPLETED. THE RECORD SHOWS THAT UNDER PARAGRAPH T ON CONTINUATION SHEET NO. 6THE DISCOUNT TERMS ARE STATED AS FOLLOWS: "TERMS: 3 PERCENT - 20 DAYS ON ALL OF THE ABOVE PUBLISHERS WITH THE EXCEPTION OF NO. 2. THAT ITS RECORD INDICATES THERE WAS NO SPECIFIC STIPULATION IN THE FISCAL YEAR 1957 CONTRACT REGARDING PARTIAL PAYMENTS AND PARTIAL RECEIVING REPORTS AND THEREFORE.

B-135440, MAR. 27, 1958

TO MR. HAROLD LERMAN:

YOUR LETTER OF FEBRUARY 18, 1958, REQUESTS REVIEW OF SETTLEMENT DATED FEBRUARY 13, 1958, WHICH DISALLOWED YOUR CLAIM FOR $3.89 PLUS $1.06, OR A TOTAL OF $4.95, AS REFUND OF PROMPT PAYMENT DISCOUNT DEDUCTED IN EFFECTING PAYMENT FOR CERTAIN PROFESSIONAL BOOKS FURNISHED THE DEPARTMENT OF THE ARMY, VALLEY FORGE ARMY HOSPITAL, PHOENIXVILLE, PENNSYLVANIA, PURSUANT TO CONTRACT NO. MPA-30-287-MD-28700, DATED JULY 10, 1956.

YOU STATE THAT YOU HAVE BEEN RECEIVING PARTIAL PAYMENT FROM 99 PERCENT OF THE INSTALLATIONS WHICH USE A SIMILAR CONTRACT FORM, THAT PROMPT PAYMENT DISCOUNT IS ALWAYS JUDGED FROM THE RECEIPT OF THE MERCHANDISE OR THE INVOICE, WHICHEVER IS LATER, AND THAT AT NO TIME HAVE YOU HAD TO ALLOW A PROMPT PAYMENT DISCOUNT UNTIL THE ORDER WAS COMPLETED.

THE RECORD SHOWS THAT UNDER PARAGRAPH T ON CONTINUATION SHEET NO. 6THE DISCOUNT TERMS ARE STATED AS FOLLOWS:

"TERMS: 3 PERCENT - 20 DAYS ON ALL OF THE ABOVE PUBLISHERS WITH THE EXCEPTION OF NO. 2, BLAKISTON, NO/3-DAVIS, NO. 6-LEA AND FEBIGER AND NO. 10-SAUNDERS.'

THE RECORD HERE FURTHER SHOWS THAT IN REPLY TO THE REQUEST OF OUR OFFICE TO THE DEPARTMENT OF THE ARMY FOR A STATEMENT OF THE FACTS IN THIS MATTER THE AGENCY REPORTED, THAT ITS RECORD INDICATES THERE WAS NO SPECIFIC STIPULATION IN THE FISCAL YEAR 1957 CONTRACT REGARDING PARTIAL PAYMENTS AND PARTIAL RECEIVING REPORTS AND THEREFORE, THE DEPARTMENT FELT JUSTIFIED IN DEDUCTING PROMPT PAYMENT DISCOUNT BASED UPON COMPLETED RECEIVING REPORT IN COMPLIANCE WITH ARMY REGULATIONS. THE EXTRACT QUOTED IN YOUR LETTER OF OCTOBER 21, 1957, WITH REGARD TO PARTIAL DELIVERY UNDER AN ORDER APPEARS TO BE FROM THE FISCAL YEAR 1958 CONTRACT BUT DOES NOT APPEAR TO HAVE BEEN INCLUDED IN THE FISCAL YEAR 1957 CONTRACT HERE INVOLVED. THE FACT THAT YOU WERE PAID THE GROSS AMOUNT ON YOUR INVOICES IN OTHER CASES IS NOT DETERMINATIVE OF THE MATTER HERE INVOLVED.

ACCORDINGLY, THE DISCOUNT APPEARS TO HAVE BEEN PROPERLY TAKEN AND THE SETTLEMENT OF FEBRUARY 13, 1958, IS SUSTAINED.