B-160685, FEB. 1, 1967

B-160685: Feb 1, 1967

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WHICH WAS ACCEPTED ON THE SAME DATE BY THE GOVERNMENT. 1965- - WERE RECEIVED IN THE FINANCE DIVISION OF THE VETERANS ADMINISTRATION REGIONAL OFFICE. PAYMENT WAS MADE TO YOU WITHIN 20 DAYS OF BOTH THAT DATE AND THE DATE OF YOUR CLAIM ON SF 1113 BY TREASURY CHECK NO. 94. YOU CONTEND THAT YOUR NOVEMBER INVOICE WAS MERELY A RESTATEMENT OF YOUR ORIGINAL INVOICE OF SEPTEMBER 5. THAT THE DISCOUNT DEDUCTED BY THE GOVERNMENT FOR PAYMENT WITHIN 20 CALENDAR DAYS WAS NOT EARNED. THE MODIFICATION APPLICABLE HERE IS SUBPARAGRAPH 20 (E) AS FOLLOWS: "/E) CLAUSE 7. IS INAPPLICABLE AND THE FOLLOWING PROVISION IS SUBSTITUTED: "THE CONTRACTOR SHALL BE PAID. D.C. 20402 * * *" STANDARD FORM 1113 PUBLIC VOUCHER FOR TRANSPORTATION CHARGES IS THE FORM PRESCRIBED BY THE COMPTROLLER GENERAL FOR BILLING FOR FREIGHT CHARGES RENDERED THE UNITED STATES.

B-160685, FEB. 1, 1967

TO RAY HAMILTON COMPANY:

CONSIDERATION HAS BEEN GIVEN TO YOUR LETTER OF JANUARY 11, 1967, WHICH, IN EFFECT, REQUESTS REVIEW OF THE SETTLEMENT CERTIFICATE DATED NOVEMBER 14, 1966, Z-1639333 (3), WHICH DISALLOWED YOUR CLAIM FOR $2,761.45, REPRESENTING 10 PERCENT PROMPT PAYMENT DISCOUNT DEDUCTED IN MAKING PAYMENT FOR TRANSPORTATION SERVICES RENDERED FOR THE VETERANS ADMINISTRATION UNDER GENERAL SERVICES ADMINISTRATION CONTRACT NO. GSO5TT-211 AND GOVERNMENT BILL OF LADING NO. A-4950442.

UNDER THE TERMS OF YOUR BID DATED JUNE 29, 1965, WHICH WAS ACCEPTED ON THE SAME DATE BY THE GOVERNMENT, YOU SPECIFIED THAT A DISCOUNT OF 10 PERCENT WOULD BE ALLOWED FOR PROMPT PAYMENT WITHIN 20 CALENDAR DAYS. YOUR CLAIM FOR $27,614.53 ON SF 1113, DATED NOVEMBER 12, 1965, AND YOUR ACCOMPANYING INVOICE NO. 391--- ALSO DATED NOVEMBER 12, 1965- - WERE RECEIVED IN THE FINANCE DIVISION OF THE VETERANS ADMINISTRATION REGIONAL OFFICE, CLEVELAND, OHIO, ON NOVEMBER 18, 1965, AND PAYMENT WAS MADE TO YOU WITHIN 20 DAYS OF BOTH THAT DATE AND THE DATE OF YOUR CLAIM ON SF 1113 BY TREASURY CHECK NO. 94,118,115, DATED NOVEMBER 30, 1965, FOR $24,853.08.

YOU CONTEND THAT YOUR NOVEMBER INVOICE WAS MERELY A RESTATEMENT OF YOUR ORIGINAL INVOICE OF SEPTEMBER 5, 1965, AND THAT THE DISCOUNT DEDUCTED BY THE GOVERNMENT FOR PAYMENT WITHIN 20 CALENDAR DAYS WAS NOT EARNED.

PARAGRAPH 20 OF THE SPECIFICATIONS INCLUDED IN THE CONTRACT INCORPORATES THE TERMS AND CONDITIONS OF THE GOVERNMENT BILL OF LADING AND, WITH CERTAIN MODIFICATIONS, THE PROVISIONS OF STANDARD FORM 32. THE MODIFICATION APPLICABLE HERE IS SUBPARAGRAPH 20 (E) AS FOLLOWS:

"/E) CLAUSE 7, PAYMENTS, IS INAPPLICABLE AND THE FOLLOWING PROVISION IS SUBSTITUTED:

"THE CONTRACTOR SHALL BE PAID, UPON THE SUBMISSION OF PROPER INVOICES OR VOUCHERS, THE AMOUNT DUE FOR SERVICES RENDERED AND ACCEPTED, LESS DEDUCTIONS, IF ANY, AS HEREIN PROVIDED. INVOICES OR VOUCHERS SHOULD BE PRESENTED FOR PAYMENT TO THE GOVERNMENT OFFICE AS DIRECTED IN THE CONTRACT. SUBMISSION OF INVOICES SHOULD BE IN ACCORDANCE WITH THE REQUIREMENTS SET FORTH IN THE ACCOMPANYING SPECIFICATIONS. ON SHIPMENTS HEREUNDER MADE ON GOVERNMENT BILLS OF LADING, THE VOUCHERS, PROPERLY CERTIFIED BY PAYEE, SHOULD BE PREPARED IN ACCORDANCE WITH INSTRUCTION 7, SHOWN ON THE REVERSE SIDE OF THE ORIGINAL GOVERNMENT BILL OF LADING FORM.'

INSTRUCTION 7 ON THE REVERSE SIDE OF THE ORIGINAL GOVERNMENT BILL OF LADING FORM STATES IN PERTINENT PART:

"BILLS SHOULD BE SUBMITTED BY BILLING OFFICES OF CARRIERS ON VOUCHER FORMS PRESCRIBED BY THE COMPTROLLER GENERAL OF THE UNITED STATES AND SUCH FORMS MAY BE OBTAINED FROM THE SUPERINTENDENT OF DOCUMENTS, U.S. GOVERNMENT PRINTING OFFICE, WASHINGTON, D.C. 20402 * * *"

STANDARD FORM 1113 PUBLIC VOUCHER FOR TRANSPORTATION CHARGES IS THE FORM PRESCRIBED BY THE COMPTROLLER GENERAL FOR BILLING FOR FREIGHT CHARGES RENDERED THE UNITED STATES. SEE 5 GAO MANUAL 3060.10.

PARAGRAPH 7 (B) OF THE TERMS AND CONDITIONS OF THE INVITATION FOR BIDS, WHICH FORMED A PART OF THE CONTRACT, PROVIDES:

"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 IF THE LATTER DATE IS LATER 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.'

UNDER THE TERMS OF PARAGRAPH 7 (B) OF THE CONTRACT, THE DISCOUNT PERIOD COMMENCED WHEN YOUR CORRECT INVOICE OR VOUCHER ON THE PRESCRIBED FORM WAS RECEIVED IN THE VETERANS ADMINISTRATION FINANCE OFFICE, NAMELY ON NOVEMBER 18, 1965, AND PAYMENT IS DEEMED TO HAVE BEEN MADE ON THE DATE OF MAILING OF THE GOVERNMENT CHECK, NOVEMBER 30, 1965. SINCE SUCH PERIOD, NOVEMBER 18 TO 30, IS LESS THAN 20 DAYS, THE DISCOUNT WAS EARNED AND WAS PROPERLY DEDUCTED. THE FACT, IF IT IS SUCH, THAT YOU MAY HAVE SUBMITTED AN EARLIER INVOICE TO THE VETERANS ADMINISTRATION ON AN IMPROPER FORM AND AT A TIME WHEN THERE WAS PENDING SOME QUESTION AS TO YOUR ENTITLEMENT TO THE PAYMENT BECAUSE OF DAMAGE TO A PORTION OF THE SHIPMENT DOES NOT CHANGE THE PERIOD FOR COMPUTATION OF THE DISCOUNT.

IN YOUR PROTEST YOU SEEM TO PLACE THE BLAME FOR YOUR DELAY IN FILING THE CORRECT VOUCHER ON THE VETERANS ADMINISTRATION FOR NOT FURNISHING YOU THE REQUIRED SF 1113 UNTIL NOVEMBER 10, 1965, AND IN SUPPORT OF THIS CHARGE YOU SUBMITTED A COPY OF THE ENVELOPE IN WHICH YOU RECEIVED IT. HOWEVER, INSTRUCTION 7 OF THE GOVERNMENT BILL OF LADING APPEARS CLEARLY TO PROVIDE THE SAID FORM COULD BE SECURED BY YOU FROM THE SUPERINTENDENT OF DOCUMENTS, UNITED STATES GOVERNMENT PRINTING OFFICE. ALSO, SUCH DELAY IN NO WAY AFFECTS COMPUTATION OF THE DISCOUNT PERIOD WHICH DOES NOT UNDER THE TERMS OF THE CONTRACT COMMENCE TO RUN UNTIL THE DATE THE CORRECT INVOICE OR VOUCHER IS RECEIVED IN THE OFFICE SPECIFIED BY THE GOVERNMENT TO BE BILLED.

THE SETTLEMENT OF OUR CLAIMS DIVISION IS CONSISTENT WITH THE FOREGOING AND IS, THEREFORE, SUSTAINED.