B-164744, JAN. 8, 1969

B-164744, JAN. 8, 1969

TO MAJOR SPEAR:

FURTHER REFERENCE IS MADE TO THE LETTER OF JUNE 27, 1968, FILE DSAH CFF, FROM THE CHIEF, ACCOUNTING AND FINANCE DIVISION, OFFICE OF THE COMPTROLLER, DEFENSE SUPPLY AGENCY, TRANSMITTING YOUR LETTER OF JUNE 18, 1968, WITH ENCLOSURES, SUBMITTING FOR ADVANCE DECISION AN ADVICE OF PAYMENT STATED IN FAVOR OF COLORADO FUEL AND IRON STEEL CORPORATION, IN THE AMOUNT OF $429.44, REPRESENTING REFUND OF THE PROMPT PAYMENT DISCOUNT TAKEN BY THE GOVERNMENT ON INVOICES NO. 7 1042 AND NO. 7 1043 UNDER CONTRACT NO. DSA 700-67-C-3610.

THE TWO INVOICES ARE DATED JULY 18, 1967, AND PROVIDE FOR A DISCOUNT OF TWO PERCENT IF PAYMENT IS MADE WITHIN 20 DAYS FROM THE DATE THEREOF. THE INVOICES, ALONG WITH COPIES OF DD FORM 250, WERE SUBMITTED FOR PAYMENT. HOWEVER, THEY WERE RETURNED TO THE CONTRACTOR ON AUGUST 2, 1967, WITH NOTICE THAT DD FORM 250 MUST BE COMPLETED IN ACCORDANCE WITH ASPR 14-409.2 (C) (II), WHICH PROVIDES: "WHERE ACCEPTANCE AND DELIVERY ARE AT POINT OF ORIGIN, THE GOVERNMENT PROCUREMENT QUALITY ASSURANCE REPRESENTATIVE SHALL SIGN AND DATE ITEM 21 OF THOSE COPIES OF DD FORM 250 * * "

BY LETTER DATED AUGUST 7, 1967, CF AND I RETURNED THE INVOICES WITH THE DD 250 FORMS, ADVISING AS FOLLOWS: "IN ACCORDANCE WITH PAST PROCEDURE ON THIS PARTICULAR CONTRACT, AND IN FACT ON ALL CONTRACTS WITH CF AND I, WE HAVE BEEN SENDING TO YOU ADVANCED COPIES OF THESE DD 250'S COMPLETED EXCEPT FOR MR. FOX'S SIGNATURE IN BLOCK 21A. MR. FOX WILL SEND ADDITIONAL COPIES PROPERLY SIGNED. AS STATED ABOVE, THIS IS THE PROCEDURE THAT HAS BEEN ESTABLISHED FOR CF AND I STEEL INVOICES IN ORDER TO PRECLUDE LONG DELAYS IN GETTING ALL THE NECESSARY PAPERS TOGETHER. WE FEEL SURE THAT MR. FOX HAS SENT THESE DD-250'S TO YOU BY NOW. PLEASE BE AWARE THAT WE BELIEVE THIS IS AN ERROR ON THE GOVERNMENTS PART AND THAT THE DISCOUNT PERIOD IS ABOUT TO EXPIRE. WE, THEREFORE, BELIEVE WE SHOULD RECEIVE A CHECK IN THE AMOUNT OF THE INVOICE, ON A NET BASIS.'

AGAIN THE INVOICES AND DD 250'S WERE RETURNED TO THE CONTRACTOR FOR COMPLETION OF ITEM 21. IT IS REPORTED IN YOUR LETTER OF JUNE 18, 1968, THAT THE INVOICES AND THE PROPERLY COMPLETED DD 250 WERE RECEIVED ON OCTOBER 7, 1967,"AND PAID ON 1 NOVEMBER 1967, WITHIN THE DISCOUNT PERIOD". HOWEVER, IT IS STATED IN YOUR LETTER OF AUGUST 30, 1968, THAT THE PAYING OFFICE CONTENDS THAT ITEM 21 WAS NOT COMPLETED AND THE DD 250 DID NOT THEREFORE CONSTITUTE AN ACCEPTABLE DOCUMENT UNTIL OCTOBER 18, 1967, AND PAYMENT WAS MADE ON NOVEMBER 1, 1967, WHICH WOULD BE WITHIN THE DISCOUNT PERIOD.

SINCE THESE STATEMENTS APPEARED TO PRESENT A DISCREPANCY AS TO WHEN A PROPERLY COMPLETED DD 250 WAS RECEIVED, WE REQUESTED CLARIFICATION. ALSO POINTED OUT THAT IT APPEARED FROM OUR EXAMINATION THAT MR. FOX, THE GOVERNMENT REPRESENTATIVE, HAD FILLED IN THE BOXES IN BLOCK 21A AND SIGNED IT ON JULY 13, 1967, AS CF AND I CLAIMED WAS THE USUAL PROCEDURE. WE, THEREFORE, REQUESTED CLARIFICATION OF THIS MATTER. IN YOUR REPLY OF NOVEMBER 14, 1968, YOU AGAIN STATED THAT THE COMPLETED DD 250 INDICATING A PREPARATION DATE OF JULY 13, 1967, AND THE INVOICES WERE RECEIVED ON OCTOBER 7, 1967, AND PAYMENT WAS MADE ON NOVEMBER 1, 1967. YOU ALSO ENCLOSED A STATEMENT FROM MR. FOX IN WHICH HE STATES: "THIS STATEMENT WILL CERTIFY THAT I THE UNDERSIGNED DID, ON JULY 13, 1967, SIGN AND -X- THE APPROPRIATE PQA AND ACCEPTANCE BLOCKS OF THE DD 250'S FOR PARTIAL SHIPMENT NOS. CF00143 AND CF00144. ATTACHED ARE COPIES OF THE DD-250'S THAT WERE SIGNED AND RETURNED TO CF AND WIRE MILL Q.C. OFFICE AT THE SAME TIME THE PAYMENT COPY WAS SIGNED AND SENT TO THE PAYMENT OFFICE IN ST. LOUIS.'

BASED ON THE ABOVE, IT APPEARS THAT THE DISCOUNT TAKEN WAS UNEARNED AND THE CLAIM FOR REFUND SHOULD BE PAID. MR. FOX STATES THAT HE COMPLETED THE DD 250 AND FORWARDED IT TO THE PAYMENT OFFICE ON JULY 13, 1967, IN ACCORDANCE WITH THE USUAL PROCEDURE. WHILE YOU DO NOT ACKNOWLEDGE RECEIPT OF THE COMPLETED DD 250 UNTIL OCTOBER 7, 1967, PAYMENT WAS NOT MADE UNTIL NOVEMBER 1, 1967, WHICH IS MORE THAN THE 20 DAYS PROVIDED FOR UNDER THE INVOICES. EVEN IF THE COMPLETED DD 250 AND INVOICES WERE NOT RECEIVED BY THE PAYMENT OFFICE UNTIL OCTOBER 18, 1967, AS STATED IN YOUR LETTER OF AUGUST 30, 1968, THE DELAY APPEARS TO HAVE BEEN THE FAULT OF THE GOVERNMENT SINCE MR. FOX STATES HE COMPLETED AND FORWARDED THE DD 250 TO THE PAYMENT OFFICE ON JULY 13, 1967.