B-163433, APR. 17, 1968

B-163433: Apr 17, 1968

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062.00) IS EXPRESSED IN U.S. DOLLARS AND VIETNAMESE PIASTRES IN EFFECT ON THE DATE APPROVED INVOICES ARE PRESENTED TO THE FINANCE OFFICER FOR PAYMENT.'. YOU STATE THAT A CLAIM FOR PARTIAL PAYMENT OF WORK ACCOMPLISHED WAS RECEIVED AND PAID IN PIASTERS AT THE EXCHANGE RATE OF 80 $VN TO $1 IN DECEMBER 1967. THE ADDITIONAL AMOUNT NOW CLAIMED IS BASED ON A 38-PIASTER SUBSIDY ESTABLISHED BY DECREE . IN THAT DECISION WE STATED THAT THE SUBSIDY OF 38 PIASTERS PER UNITED STATES DOLLAR GRANTED TO THE UNITED STATES BY THE GOVERNMENT OF VIETNAM WAS SOLELY FOR THE BENEFIT OF THE UNITED STATES AND SHOULD NOT BE PASSED ON TO THE CONTRACTORS HAVING CONTRACTS WITH THE UNITED STATES. WHAT WE STATED THERE IS EQUALLY APPLICABLE HERE.

B-163433, APR. 17, 1968

TO MAJOR SATHRUM:

BY LETTER DATED JANUARY 26, 1968, THE CHIEF OF FINANCE AND ACCOUNTING FORWARDED YOUR LETTER OF JANUARY 10, 1968, WITH ENCLOSURES, REQUESTING AN ADVANCE DECISION AS TO THE PROPRIETY OF PAYING A VOUCHER STATED IN FAVOR OF TRUONG-XUAN-TRUC IN THE AMOUNT OF $VN607,259 ($5,146.26) COVERING THE CLAIM FOR THE DIFFERENCE BETWEEN 80 $VN TO $1 AND 118 $VN TO $1 FOR WORK PERFORMED UNDER CONTRACT NO. N62742-67-C 2384 DATED JULY 10, 1967.

THE CITED CONTRACT PROVIDES IN PERTINENT PART AS FOLLOWS: "B. THE CONSIDERATION UNDER THIS CONTRACT IN THE LUMP SUM AMOUNT OF ONE HUNDRED FORTY EIGHT THOUSAND AND SIXTY TWO U.S. DOLLARS ($148,062.00) IS EXPRESSED IN U.S. DOLLARS; HOWEVER, THE UNITED STATES GOVERNMENT RESERVES THE RIGHT TO MAKE PAYMENTS IN VIETNAMESE PIASTRES AT THE LEGAL RATE OF EXCHANGE BETWEEN THE U.S. DOLLARS AND VIETNAMESE PIASTRES IN EFFECT ON THE DATE APPROVED INVOICES ARE PRESENTED TO THE FINANCE OFFICER FOR PAYMENT.' YOUR LETTER OF JANUARY 10, YOU STATE THAT A CLAIM FOR PARTIAL PAYMENT OF WORK ACCOMPLISHED WAS RECEIVED AND PAID IN PIASTERS AT THE EXCHANGE RATE OF 80 $VN TO $1 IN DECEMBER 1967. THE ADDITIONAL AMOUNT NOW CLAIMED IS BASED ON A 38-PIASTER SUBSIDY ESTABLISHED BY DECREE -- LAW NO. 035/SLU OF AUGUST 29, 1967.

IN OUR DECISION OF APRIL 11, 1968, B-163206, WE CONSIDERED THE PROPRIETY OF PAYING A SIMILAR CLAIM UNDER A CONTRACT CONTAINING A PAYMENT PROVISION ESSENTIALLY THE SAME AS THAT OF THE INSTANT CONTRACT. IN THAT DECISION WE STATED THAT THE SUBSIDY OF 38 PIASTERS PER UNITED STATES DOLLAR GRANTED TO THE UNITED STATES BY THE GOVERNMENT OF VIETNAM WAS SOLELY FOR THE BENEFIT OF THE UNITED STATES AND SHOULD NOT BE PASSED ON TO THE CONTRACTORS HAVING CONTRACTS WITH THE UNITED STATES. WHAT WE STATED THERE IS EQUALLY APPLICABLE HERE.

ACCORDINGLY, PAYMENT OF THE VOUCHER IS NOT AUTHORIZED AND IT WILL BE RETAINED IN THE FILES OF THIS OFFICE.