B-152525, JAN. 8, 1964

B-152525: Jan 8, 1964

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ESQUIRE: FURTHER REFERENCE IS MADE TO YOUR TELEGRAM OF OCTOBER 1. CONCERNING THE SET-OFF FROM ASSIGNED MONIES DUE UNDER CONTRACT AF 11/626/503 OF SUMS FOUND TO HAVE BEEN OVERPAID FOR SERVICES UNDER CONTRACT AF-11/626/388. WE HAVE CONCLUDED THAT THE SET-OFF IN QUESTION SHOULD NOT HAVE BEEN MADE. THE DISBURSING OFFICERS WILL BE NOTIFIED TO DISCONTINUE SET OFFS FROM ASSIGNED MONIES DUE UNDER TRANSPORTATION CONTRACTS PERMITTING ASSIGNMENTS NOT SUBJECT TO REDUCTION OR SET-OFF WHERE THE LIABILITIES SOUGHT TO BE SATISFIED ARISE INDEPENDENTLY OF THE CONTRACT. IF YOUR CLIENT AND THE ASSIGNEE IN QUESTION HAVE NOT ADJUSTED THIS MATTER. WE WILL AUTHORIZE PAYMENT TO THE ASSIGNEE OF THE AMOUNT OF THE SET-OFF UPON RECEIPT OF AN APPROPRIATE CLAIM THEREFOR.

B-152525, JAN. 8, 1964

TO THEODORE I. SEAMON, ESQUIRE:

FURTHER REFERENCE IS MADE TO YOUR TELEGRAM OF OCTOBER 1, 1963, CONCERNING THE SET-OFF FROM ASSIGNED MONIES DUE UNDER CONTRACT AF 11/626/503 OF SUMS FOUND TO HAVE BEEN OVERPAID FOR SERVICES UNDER CONTRACT AF-11/626/388. CONTRACT AF-11/626/503 PERMITTED ASSIGNMENTS NOT SUBJECT TO REDUCTION OR SET-OFF.

WE HAVE CONCLUDED THAT THE SET-OFF IN QUESTION SHOULD NOT HAVE BEEN MADE, AND THE DISBURSING OFFICERS WILL BE NOTIFIED TO DISCONTINUE SET OFFS FROM ASSIGNED MONIES DUE UNDER TRANSPORTATION CONTRACTS PERMITTING ASSIGNMENTS NOT SUBJECT TO REDUCTION OR SET-OFF WHERE THE LIABILITIES SOUGHT TO BE SATISFIED ARISE INDEPENDENTLY OF THE CONTRACT. IF YOUR CLIENT AND THE ASSIGNEE IN QUESTION HAVE NOT ADJUSTED THIS MATTER, WE WILL AUTHORIZE PAYMENT TO THE ASSIGNEE OF THE AMOUNT OF THE SET-OFF UPON RECEIPT OF AN APPROPRIATE CLAIM THEREFOR. WE WILL THEN LOOK TO YOUR CLIENT FOR SATISFACTION OF THE OVERPAYMENTS MADE FOR SERVICES UNDER CONTRACT AF- 11/626/388.

BILLS FOR TRANSPORTATION SERVICES UNDER ASSIGNMENTS NOT SUBJECT TO REDUCTION OR SET-OFF APPARENTLY ARE NOW BEING PAID UPON PRESENTATION WITHOUT ANY PRE-PAYMENT EXAMINATION AS TO THEIR CORRECTNESS. WE ARE NOW CONSIDERING THE ADVISABILITY OF INSTITUTING PROCEDURES TO REQUIRE PRE- PAYMENT EXAMINATION OF SUCH BILLS. ALSO TO BE CONSIDERED IS THE NEED FOR ACTION TO OBTAIN REMOVAL OF NO SET-OFF CLAUSES FROM FUTURE CONTRACTS FOR TRANSPORTATION SERVICES.