B-157059, JUL. 15, 1965

B-157059: Jul 15, 1965

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FC: REFERENCE IS MADE TO YOUR LETTER OF MAY 17. WAS NOT CONSUMMATED UNTIL DECEMBER 22. WHEN NOTICE OF AWARD WAS MADE. WAS NOT ISSUED UNTIL FEBRUARY 2. ALTHOUGH THE MACHINE IS REPORTED TO HAVE BEEN INSTALLED ON OCTOBER 28. THERE IS NOTED. THE CONTRACT HERE INVOLVED WAS MADE RETROACTIVE TO JULY 1. IT APPEARS FROM THE CORRESPONDENCE IN THE FILE THAT THE INSTALLATION THEREOF WAS DULY ORDERED AND APPROVED BY COMPETENT GOVERNMENT OFFICIALS. THIS IN SPITE OF THE FACT THAT NO FORMAL ORDER WAS EVER ISSUED. PAYMENT OF THE AMOUNT CLAIMED IS AUTHORIZED. ARE RETURNED.

B-157059, JUL. 15, 1965

TO LIEUTENANT COLONEL H. W. KASSERMAN, FC:

REFERENCE IS MADE TO YOUR LETTER OF MAY 17, 1965, REQUESTING A DECISION AS TO WHETHER PAYMENT MAY BE MADE TO THE INTERNATIONAL BUSINESS MACHINES CORPORATION FOR RENTAL OF A MACHINE FOR THE PERIOD FROM OCTOBER 29, 1964, THROUGH DECEMBER 23, 1964.

CONTRACT NO. GS-00S-49750 ENTERED INTO BY THE GENERAL SERVICES ADMINISTRATION WITH THE INTERNATIONAL BUSINESS MACHINES CORPORATION AND COVERING THE FISCAL YEAR ENDED JUNE 30, 1965, WAS NOT CONSUMMATED UNTIL DECEMBER 22, 1964, WHEN NOTICE OF AWARD WAS MADE. A FORMAL ORDER (AMENDMENT NO. 7 TO CONTRACT) FOR RENTAL OF ONE MACHINE TYPE 548, INTERPRETER, MODEL 1, SN 33340, WAS NOT ISSUED UNTIL FEBRUARY 2, 1965, BUT COVERED THE PERIOD BEGINNING WITH DECEMBER 24, 1964. ALTHOUGH THE MACHINE IS REPORTED TO HAVE BEEN INSTALLED ON OCTOBER 28, 1964. PAYMENT FOR RENTAL OF THE MACHINE HAS BEEN MADE FOR THE PERIOD BEGINNING DECEMBER RENTAL OF THE MACHINE HAS BEEN MADE FOR THE PERIOD BEGINNING DECEMBER 24, 1964.

YOUR DOUBT AS TO THE PROPRIETY OF PAYMENT OF RENTAL FOR THE PERIOD FROM OCTOBER 29, 1964, THROUGH DECEMBER 23, 1964, ARISES BECAUSE OF THE FACT THAT A DEPARTMENTAL DIRECTIVE (DA981053) ISSUED AUGUST 1964, OUTLINING THE USE OF MACHINES UNDER CONTRACTS THEN IN PROCESS OF NEGOTIATION MIGHT BE INTERPRETED AS LIMITING PAYMENT OF RENTAL TO THE PERIOD SUBSEQUENT TO THE NOTICE OF AWARD, DECEMBER 22, 1964. THERE IS NOTED, HOWEVER, THE CONTRACT HERE INVOLVED WAS MADE RETROACTIVE TO JULY 1, 1964.

WHILE IT MAY BE THAT THE REFERRED-TO DEPARTMENTAL DIRECTIVE DID NOT SPECIFICALLY MENTION THE USE OF THE MACHINE THEREAFTER INSTALLED ON OCTOBER 28, 1964, IT APPEARS FROM THE CORRESPONDENCE IN THE FILE THAT THE INSTALLATION THEREOF WAS DULY ORDERED AND APPROVED BY COMPETENT GOVERNMENT OFFICIALS. SINCE THE GOVERNMENT HAD THE USE OF THE MACHINE DURING THE PERIOD COVERED BY THE VOUCHER SUBMITTED WITH YOUR LETTER, THERE APPEARS NO REASON AS TO WHY THE COMPANY SHOULD NOT BE PAID THEREFOR AT THE CONTRACT PRICE, THIS IN SPITE OF THE FACT THAT NO FORMAL ORDER WAS EVER ISSUED.

ACCORDINGLY, IF OTHERWISE CORRECT, PAYMENT OF THE AMOUNT CLAIMED IS AUTHORIZED. THE PAPERS SUBMITTED WITH YOUR LETTER OF MAY 17, 1965, ARE RETURNED.