B-139167, JUL. 31, 1959

B-139167: Jul 31, 1959

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TO THE COLUMBUS PRODUCTION MANUFACTURING COMPANY: FURTHER REFERENCE IS MADE TO YOUR LETTER DATED MARCH 6. 121.47 WHICH WAS HELD IN RESERVE IN A NAVY SPECIAL BANK ACCOUNT AT YOUR LOCAL BANK. MODIFICATION NO. 2 WAS ISSUED TO THE CONTRACT WHICH PROVIDED FOR ADVANCE PAYMENTS TO BE MADE TO YOU OF NOT TO EXCEED A TOTAL OF $60. WHICH WAS ATTACHED TO AND MADE A PART OF THE CONTRACT. - WERE MADE TO YOU BY DEPOSIT INTO A NAVY SPECIAL BANK ACCOUNT AS REQUIRED UNDER PARAGRAPH 2. IT APPEARS FURTHER THAT DEDUCTIONS FROM AMOUNTS OTHERWISE PROPERLY DUE YOU WERE MADE BY THE DEPARTMENT OF THE NAVY FOR INTEREST ON CERTAIN UNPAID BALANCES OF THE ADVANCED PAYMENTS IN ACCORDANCE WITH THE PROVISIONS OF PARAGRAPHS 5 AND 14 OF EXHIBIT A.

B-139167, JUL. 31, 1959

TO THE COLUMBUS PRODUCTION MANUFACTURING COMPANY:

FURTHER REFERENCE IS MADE TO YOUR LETTER DATED MARCH 6, 1959, REGARDING OUR SETTLEMENT DATED FEBRUARY 13, 1959, WHICH DISALLOWED YOUR CLAIM FOR $516.16 ALLEGED TO BE DUE FOR OVERCHARGE OF INTEREST ON $13,764.39, AS COVERED BY INVOICES NOS. 1960, 1961, 1962, AND 1963 UNDER DEPARTMENT OF THE NAVY CONTRACT NO. N600/A/42894, DATED AUGUST 3, 1956. YOU ALSO MAKE CLAIM UNDER THE CONTRACT FOR THE INTEREST, APPARENTLY IN THE AMOUNT OF $259.58, CHARGED ON THE SUM OF $5,121.47 WHICH WAS HELD IN RESERVE IN A NAVY SPECIAL BANK ACCOUNT AT YOUR LOCAL BANK.

UNDER THE CONTRACT YOU AGREED TO FURNISH TO THE DEPARTMENT OF THE NAVY CERTAIN QUANTITIES AND TYPES OF AIRCRAFT CATAPULTS, SPARE PARTS, ETC., FOR A TOTAL PRICE OF $104,735.13. ON FEBRUARY 8, 1957, MODIFICATION NO. 2 WAS ISSUED TO THE CONTRACT WHICH PROVIDED FOR ADVANCE PAYMENTS TO BE MADE TO YOU OF NOT TO EXCEED A TOTAL OF $60,000 IN ACCORDANCE WITH THE TERMS OF EXHIBIT A, WHICH WAS ATTACHED TO AND MADE A PART OF THE CONTRACT. APPEARS THAT PURSUANT TO THE MODIFICATION CERTAIN ADVANCE PAYMENTS--- $50,000 IN FEBRUARY 1957 AND $10,000 IN MARCH 1957--- WERE MADE TO YOU BY DEPOSIT INTO A NAVY SPECIAL BANK ACCOUNT AS REQUIRED UNDER PARAGRAPH 2, EXHIBIT A, MODIFICATION NO. 2. IT APPEARS FURTHER THAT DEDUCTIONS FROM AMOUNTS OTHERWISE PROPERLY DUE YOU WERE MADE BY THE DEPARTMENT OF THE NAVY FOR INTEREST ON CERTAIN UNPAID BALANCES OF THE ADVANCED PAYMENTS IN ACCORDANCE WITH THE PROVISIONS OF PARAGRAPHS 5 AND 14 OF EXHIBIT A. THIS ACTION RESULTED IN YOUR CLAIMS WHICH ARE NOW BEFORE US.

IN YOUR LETTER OF MARCH 6, 1959, AND OTHER CORRESPONDENCE OF RECORD, YOU TAKE THE POSITION WITH RESPECT TO YOUR CLAIM FOR $516.16 THAT INVOICES NOS. 1960, 1961, 1962, AND 1963 COVERING THE $13,764.39 PAYMENT WERE SENT TO THE INSPECTOR OF NAVAL MATERIAL (INSNAT), CINCINNATI, IN THE NORMAL MANNER AND THAT THE INVOICES NO DOUBT WERE MISPLACED SOMEWHERE BETWEEN THAT OFFICE AND GREAT LAKES, ILLINOIS, WHERE THEY WERE TO BE FORWARDED FOR PAYMENT.

THERE IS IN THE RECORD BEFORE US A COPY OF A MEMORANDUM DATED OCTOBER 31, 1958, FROM THE COMPTROLLER OF THE NAVY TO THE OFFICER IN CHARGE, U.S. NAVY REGIONAL ACCOUNTS OFFICE, GREAT LAKES, ILLINOIS, WHEREIN IT IS STATED THAT "IT WOULD THEREFORE APPEAR FROM THE ABOVE SEQUENCE OF EVENTS THAT THE INVOICES MIGHT HAVE BEEN MISLAID IN THE OFFICE OF THE INSPECTOR OF NAVAL MATERIAL, CINCINNATI, AND NOT FORWARDED TO THE ADDRESSEE ON A TIMELY BASIS.' ALSO, A REFERENCE IS MADE IN THE MEMORANDUM TO A STIPULATION IN PARAGRAPHS 217723 OF ONM ADMINISTRATION MANUAL, THAT FORM DD 250 MAY BE USED AS AN INVOICE PROVIDED THAT IT IS PROPERLY DESIGNATED AS SUCH. ATTACHED TO D.O. VOUCHER NO. 58419, ON WHICH PAYMENT OF THE $13,764.39 ULTIMATELY WAS MADE ON JUNE 6, 1958, ARE FOUR FORMS DD 250 DESIGNATED AS ORIGINAL INVOICE NO. 1960, INVOICE NO. 1961, INVOICE NO. 1962, AND INVOICE NO. 1963. IN ADDITION, EACH INVOICE SHOWS INSPECTION AND ACCEPTANCE OF THE CATAPULTS BY A GOVERNMENT REPRESENTATIVE ON SEPTEMBER 9, 1957. THEREFORE, SINCE FORMS DD 250, WHICH, INCIDENTALLY, YOU STATE HAD BEEN USED AS INVOICES FOR ALL PRIOR AND SUBSEQUENT BILLINGS UNDER THE CONTRACT, PROPERLY WERE DESIGNATED AS INVOICES AND WERE IN THE HANDS OF AN AUTHORIZED GOVERNMENT REPRESENTATIVE OF SEPTEMBER 9, 1957, AND SINCE THE PAYMENT ON JUNE 6, 1958, ACTUALLY WAS MADE ON THE BASIS OF SUCH FORMS DD 250, AS INVOICES, RATHER THAN ON ANY OTHER TYPE OF PRIVATE INVOICE FORM, IT IS NOT BELIEVED THAT THE GOVERNMENT WOULD BE WARRANTED IN CHARGING YOU INTEREST ON THE $13,764.39 FOR THE PERIOD SEPTEMBER 9, 1957, TO JUNE 6, 1958. IT APPEARS THAT THE GOVERNMENT WAS IN THE POSITION TO CREDIT YOU WITH THE PAYMENT OF $13,764.39 IN THE NAVY SPECIAL BANK ACCOUNT ON OR ABOUT SEPTEMBER 9, 1957.

ACCORDINGLY, INSTRUCTIONS ARE TODAY BEING ISSUED TO OUR CLAIMS DIVISION TO ALLOW YOUR CLAIM IN THE AMOUNT OF $516.16, IF OTHERWISE CORRECT.

WITH RESPECT TO YOUR CLAIM FOR THE INTEREST CHARGED YOU ON THE AMOUNT OF $5,121,47--- APPARENTLY COMPUTED BY GREAT LAKES IN THE AMOUNT OF $259.58 FOR THE PERIOD JULY 31, 1957, TO AUGUST 5, 1958--- YOU CONTEND THAT A REQUEST, WHICH WAS MADE IN YOUR BEHALF TO THE NAVY REGIONAL ACCOUNTS OFFICE AT GREAT LAKES TO WITHDRAW THIS AMOUNT OF MONEY FROM THE NAVY SPECIAL BANK ACCOUNT WENT UNANSWERED AND, THEREFORE, YOU WERE FORCED TO PAY INTEREST ON THE MONEY WHICH WAS INTENDED TO BE WITHDRAWN IN PARTIAL REPAYMENT OF THE MONEY ADVANCED TO YOU BY THE NAVY UNDER THE SUBJECT CONTRACT. IN THIS CONNECTION, THE DEPARTMENT OF THE NAVY REPORTS THAT IT HAS NO RECORD OF ANY REQUEST FROM YOU FOR WITHDRAWAL OF THE $5,121.47, OR ANY PART THEREOF, PRIOR TO THE RECEIPT OF YOUR LETTER DATED JULY 10, 1958, TO THE CINCINNATI INSPECTOR OF NAVAL MATERIAL. IN THAT LETTER YOU STATE THAT THE $5,121.47 SHOULD BE USED TO REIMBURSE THE NAVY FOR THE ADVANCE PAYMENTS AND THAT "THIS WILL ALSO STOP OUR INTEREST FOR THAT PORTION OF ADVANCE PAYMENTS.' THE LATTER STATEMENT CLEARLY IMPLIES YOUR RECOGNITION OF A PROPER INTEREST CHARGE UP TO THAT TIME AT LEAST. MOREOVER, THERE IS IN THE RECORD BEFORE US A COPY OF YOUR LETTER DATED DECEMBER 13, 1957, TO THE GREAT LAKES REGIONAL ACCOUNTS OFFICE, WHEREIN YOU REFERRED TO LIQUIDATION OF THE ADVANCE PAYMENT ACCOUNT BUT SAID NOTHING ABOUT YOUR ALLEGED PREVIOUS REQUEST FOR WITHDRAWAL OF THE $5,121.47 TO REIMBURSE THE ACCOUNT. IN VIEW OF THE FOREGOING, THERE IS NO LEGAL BASIS FOR ALLOWANCE OF ANY PART OF THE INTEREST OF $259.58 CHARGED TO YOUR ACCOUNT SINCE SUCH AMOUNT APPEARS TO HAVE BEEN PROPERLY COMPUTED AND CHARGED UNDER APPLICABLE PROVISIONS OF THE CONTRACT, AS AMENDED.