B-159477, SEP. 1, 1966

B-159477: Sep 1, 1966

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WE ALSO HAVE YOUR COMMUNICATION OF AUGUST 17. IT IS RELATED THAT THE VALIDITY OF THE SUBJECT PAYMENT IS QUESTIONED INASMUCH AS THE CONTRACTOR STATES THAT THE ORIGINAL INVOICE WAS FORWARDED DIRECT TO THE DIRECTOR. WAS MAILED ON OCTOBER 26. IT IS ADMINISTRATIVELY REPORTED BY BOTH YOU AND THE CONTRACTING OFFICER THAT YOU ARE UNABLE TO LOCATE ANY RECORD OF RECEIPT OF THE ORIGINAL INVOICE IN QUESTION. THAT DUPLICATE COPY OF THE INVOICE WAS ACTUALLY RECEIVED ON DECEMBER 20. THE DISCOUNT WAS CONSIDERED EARNED SINCE PAYMENT WAS MADE WITHIN THREE DAYS AFTER RECEIPT OF THE INVOICE. CONTENDS THAT THE DATE HIS ORIGINAL INVOICE WAS MAILED WAS OCTOBER 26. STATES AS FOLLOWS: "ON YOUR ADVICE OF PAYMENT IS STATED "INVOICE 220 RECEIVED THIS OFFICE 20 DECEMBER 1965.'.

B-159477, SEP. 1, 1966

TO THE DEPUTY CHIEF, OFFICE OF DATA AND FINANCIAL MANAGEMENT, DEFENSE SUPPLY AGENCY:

BY LETTER OF JUNE 17, 1966, FILE DSAH-C, THE COMPTROLLER, DEFENSE SUPPLY AGENCY (DSA), TRANSMITTED YOUR LETTER DATED JUNE 8, 1966, WITH ENCLOSURES, SUBMITTING FOR ADVANCE DECISION, A VOUCHER STATED IN FAVOR OF ELECTRO PLASTIC FABRICS, INC., IN THE AMOUNT OF $2,800, REPRESENTING REFUND OF THE PROMPT PAYMENT DISCOUNT TAKEN BY THE GOVERNMENT ON VOUCHER NO. 088-60 UNDER CONTRACT NO. DAS-1-8150. WE ALSO HAVE YOUR COMMUNICATION OF AUGUST 17, 1966, SUBMITTING FURTHER INFORMATION FOR OUR CONSIDERATION IN THIS MATTER.

IN YOUR LETTER OF JUNE 8, 1966, IT IS RELATED THAT THE VALIDITY OF THE SUBJECT PAYMENT IS QUESTIONED INASMUCH AS THE CONTRACTOR STATES THAT THE ORIGINAL INVOICE WAS FORWARDED DIRECT TO THE DIRECTOR, DEFENSE CONTRACT ADMINISTRATION SERVICES REGION, ATTENTION: OFFICE OF DATA AND FINANCIAL MANAGEMENT, POST OFFICE BOX 7478, PHILADELPHIA, PENNSYLVANIA, AND WAS MAILED ON OCTOBER 26, 1965. HOWEVER, IT IS ADMINISTRATIVELY REPORTED BY BOTH YOU AND THE CONTRACTING OFFICER THAT YOU ARE UNABLE TO LOCATE ANY RECORD OF RECEIPT OF THE ORIGINAL INVOICE IN QUESTION, AND THAT DUPLICATE COPY OF THE INVOICE WAS ACTUALLY RECEIVED ON DECEMBER 20, 1965, AND PAYMENT MADE ON DECEMBER 23, 1965, BY CHECK NO. 25010, VOUCHER NO. 088- 60. THE DISCOUNT WAS CONSIDERED EARNED SINCE PAYMENT WAS MADE WITHIN THREE DAYS AFTER RECEIPT OF THE INVOICE.

THE CONTRACTOR, ON THE OTHER HAND, CONTENDS THAT THE DATE HIS ORIGINAL INVOICE WAS MAILED WAS OCTOBER 26, 1965, AND IN A LETTER OF DECEMBER 29, 1965, STATES AS FOLLOWS:

"ON YOUR ADVICE OF PAYMENT IS STATED "INVOICE 220 RECEIVED THIS OFFICE 20 DECEMBER 1965.' WE WISH TO REMIND YOU THAT OUR INVOICE NO. 220 WHICH IS OUR MEMORANDUM COPY OF PARTIAL NO. 12, LOT NO. 12 REFERRED TO ABOVE, WAS MAILED AT YOUR REQUEST BECAUSE YOUR COPIES 9, 10, AND 11 OF FORM DD 250 WERE LOST IN YOUR OFFICE. WE ARE SURE THESE COPIES WERE MAILED IN YOUR PRE-ADDRESSED ENVELOPE AT THE TIME SHIPMENT LEFT OUR PLANT.'

HOWEVER, IN RESPONSE TO OUR REQUEST FOR INFORMATION AS TO THE ACCURACY OF THE CONTRACTOR'S STATEMENT ABOVE-QUOTED, YOU STATED IN YOUR COMMUNICATION OF AUGUST 17, 1966, AS FOLLOWS:

"PLEASE BE ADVISED THAT THE CONTRACTOR CONTACTED THIS DISBURSING OFFICE BY TELEPHONE CONCERNING NON-PAYMENT OF INVOICE NO. 220, PARTIAL SHIPMENT NO. 12. HE WAS ADVISED TO SUBMIT A COPY OF THE INVOICE FOR PAYMENT SINCE THERE WAS NO RECORD OF RECEIPT IN THIS OFFICE OF A PRIOR SUBMISSION AND NOT BECAUSE, AS WAS ALLEGED, THE COPIES OF DD 250 WERE LOST IN THIS OFFICE.' IT IS AT THIS POINT THAT THE ISSUE RESTS, A CONFLICT IN ASSERTIONS BETWEEN THE CONTRACTOR AND THE CONTRACTING OFFICER, LEADING TO YOUR REQUEST FOR OUR DECISION ON THE RECORD YOU HAVE PRESENTED.

PARAGRAPH 7/B) OF THE "TERMS AND CONDITIONS OF THE INVITATION FOR BIDS," IN THIS CASE, ROVIDES:

"/B) IN CONNECTION WITH ANY DISCOUNT OFFERED, TIME WILL BE COMPUTED FROM DATE OF DELIVERY OF THE SUPPLIES TO CARRIER WHEN DELIVERY AND ACCEPTANCE ARE AT POINT OF ORIGIN, OR FROM DATE OF DELIVERY AT DESTINATION OR PORT OF EMBARKATION WHEN DELIVERY AND ACCEPTANCE ARE AT EITHER OF THOSE POINTS, OR FROM DATE CORRECT INVOICE OR VOUCHER IS RECEIVED IN THE OFFICE SPECIFIED BY THE GOVERNMENT OF THE LATTER DATE THAN THE DATE OF DELIVERY. PAYMENT IS DEEMED TO BE MADE, FOR THE PURPOSE OF EARNING THE DISCOUNT, ON THE DATE OF MAILING OF THE GOVERNMENT CHECK.' IT IS APPARENT UNDER PARAGRAPH 7/B) THAT THE DATE OF RECEIPT OF THE INVOICE BY THE GOVERNMENT, AND NOT THE DATE OF MAILING BY THE CONTRACTOR, IS THE CONTROLLING FACTOR IN DETERMINING THE PROPRIETY OF TAKING THE DISCOUNT IN QUESTION.

YOU HAVE DISCLAIMED THAT ANY INVOICE WAS RECEIVED BY YOU OTHER THAN THE ONE REPORTED TO HAVE BEEN RECEIVED ON DECEMBER 20, 1965, AND SINCE PAYMENT WAS MADE ON DECEMBER 23, 1965, IT MUST BE CONCLUDED ON THE PRESENT RECORD THAT THE DISCOUNT TAKEN WAS PROPERLY EARNED AND THEREFORE PAYMENT OF THE VOUCHER, WHICH IS BEING RETAINED IN THIS OFFICE, IS NOT AUTHORIZED.