B-141119, DEC. 14, 1959

B-141119: Dec 14, 1959

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PERMAGRAIN CORPORATION: FURTHER REFERENCE IS MADE TO YOUR LETTER DATED OCTOBER 19. THE MEDICAL CENTER REPORTS THAT THE INVOICE SHOWS THAT THE INVOICE COVERING THIS PAYMENT WAS RECEIVED ON MAY 18. THE RECORD SHOWS THAT PAYMENT WAS MADE ON MAY 21. PAYMENT WAS NOT MADE UNTIL MAY 21. YOU STATE THAT THE INVOICE WAS MAILED BY YOU PERSONALLY IN AN ENVELOPE BEARING THE RETURN ADDRESS OF THE PERMAGRAIN CORPORATION. THAT THE INVOICE WAS NEVER RETURNED. THAT SINCE PAYMENT WAS NOT MADE WITHIN 20 DAYS OF APRIL 13. THE DISCOUNT WAS NOT PROPERLY EARNED. THERE IS NO EVIDENCE IN THE RECORD BEFORE US ESTABLISHING THAT AN INVOICE HAD BEEN RECEIVED BY THE WALTER REED ARMY MEDICAL CENTER ON OR ABOUT APRIL 13.

B-141119, DEC. 14, 1959

TO MR. EDWARD J. JOY, PRESIDENT, PERMAGRAIN CORPORATION:

FURTHER REFERENCE IS MADE TO YOUR LETTER DATED OCTOBER 19, 1959, REQUESTING REVIEW OF OUR SETTLEMENT DATED AUGUST 24, 1959, DISALLOWING YOUR CLAIM FOR $53.24 UNDER PURCHASE ORDER NO. 5-AMC-21169-H-59, ISSUED TO YOU BY THE WALTER REED ARMY MEDICAL CENTER ON APRIL 10, 1959.

IN MAKING PAYMENT OF THE $266.22 DUE UNDER THE PURCHASE ORDER, THE ARMY MEDICAL CENTER DEDUCTED A DISCOUNT OF $53.24 IN ACCORDANCE WITH THE 2 PERCENT, 20-DAY DISCOUNT TERMS SPECIFIED THEREON. THE MEDICAL CENTER REPORTS THAT THE INVOICE SHOWS THAT THE INVOICE COVERING THIS PAYMENT WAS RECEIVED ON MAY 18, 1959, AND THE RECORD SHOWS THAT PAYMENT WAS MADE ON MAY 21, 1959. THE CLAIM FOR A REFUND OF THE DISCOUNT TAKEN ARISES BY REASON OF YOUR CONTENTION THAT ALTHOUGH AN INVOICE HAD BEEN MAILED BY YOU TO THE WALTER REED ARMY MEDICAL ON APRIL 13, 1959, ABOUT THE TIME OF DELIVERY OF THE EQUIPMENT, PAYMENT WAS NOT MADE UNTIL MAY 21, 1959. YOU STATE THAT THE INVOICE WAS MAILED BY YOU PERSONALLY IN AN ENVELOPE BEARING THE RETURN ADDRESS OF THE PERMAGRAIN CORPORATION; THAT THE INVOICE WAS NEVER RETURNED; AND THAT SINCE PAYMENT WAS NOT MADE WITHIN 20 DAYS OF APRIL 13, 1959, THE DISCOUNT WAS NOT PROPERLY EARNED.

THERE IS NO EVIDENCE IN THE RECORD BEFORE US ESTABLISHING THAT AN INVOICE HAD BEEN RECEIVED BY THE WALTER REED ARMY MEDICAL CENTER ON OR ABOUT APRIL 13, 1959. IN FACT, THE MEDICAL CENTER EXPRESSLY STATES IN A LETTER TO OUR OFFICE DATED JULY 17, 1959, THAT THE QUARTERMASTER PROPERTY OFFICE OF THE MEDICAL CENTER, WHERE THE INVOICE ALLEGEDLY WAS FORWARDED, HAS NO RECORD OF HAVING RECEIVED IT. THIS BEING THE CASE, THERE MAY NOT BE ACCEPTED BY OUR OFFICE THE MERE SELF-SERVING DECLARATIONS MADE BY YOU REGARDING THE CONDITIONS ATTENDING THE ALLEGED MAILING OF THE INVOICE TO ESTABLISH THE ACTUAL RECEIPT DATE THEREOF. THE EARLIEST DATE OF RECEIPT OF AN INVOICE WHICH THE WALTER REED ARMY MEDICAL CENTER HAS OF RECORD IS MAY 18, 1959, AND SINCE PAYMENT WAS MADE ON MAY 21, 1959, IT MUST BE CONCLUDED THAT THE DISCOUNT WAS PROPERLY EARNED AND DEDUCTED.

REGARDING YOUR STATEMENT THAT "IT SEEMS RATHER ODD THAT WE DID NOT GET A REQUEST FOR A DUPLICATE INVOICE UNTIL AFTER THE DISCOUNT PERIOD HAD PASSED AND PARTICULARLY SO SINCE THE PAYING OFFICE MADE THIS REQUEST," IT MAY BE POINTED OUT THAT THE GOVERNMENT DID NOT REQUEST A DUPLICATE INVOICE SINCE THE RECORD SHOWS THAT NO INVOICE HAD EVER BEEN RECEIVED BY THE GOVERNMENT.

UNDER THE TERMS OF THE PURCHASE ORDER IT WAS YOUR RESPONSIBILITY TO FURNISH AN INVOICE TO THE GOVERNMENT. SO FAR AS THE RECORD SHOWS THE ADMINISTRATIVE OFFICE ACTED IN GOOD FAITH SINCE THEY REQUESTED, ALTHOUGH UNDER NO CONTRACTUAL OBLIGATION TO DO SO, AN INVOICE WHEN THEY BECAME AWARE OF THE FACT THAT YOU HAD FAILED TO FURNISH ONE WITHIN A REASONABLE LENGTH OF TIME AFTER DELIVERY OF THE MERCHANDISE. IN VIEW THEREOF, WE MUST CONCLUDE THAT THERE IS NO LEGAL BASIS FOR ALLOWANCE OF YOUR CLAIM.