B-165832, JAN. 16, 1969

B-165832: Jan 16, 1969

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WERE RECEIVED BY THE PROPER PAYING OFFICE. THE RECEIVING DATE IS BASED ON THE PERFORATED JULIAN DATE OF 67 318 (NOVEMBER 14. 1967) WHICH WAS IMPRINTED ON THE INVOICES BY THE OFFICE OF DATA AND FINANCIAL MANAGEMENT (D-AND-FM) MAIL ROOM AT THE TIME OF INITIAL RECEIPT. THE INVOICES WERE COMBINED FOR PAYMENT PURPOSES AND PAYMENT THEREOF WAS SUBSEQUENTLY MADE ON VOUCHER NO. THE DATES OF THE RECEIVING REPORTS WERE MAY 17 AND JULY 26. IT WAS ADMINISTRATIVELY DETERMINED UNDER DSAM 7000.1. THAT THE DATE FOR COMPUTING THE DISCOUNT PERIOD WAS THE DATE OF RECEIPT OF THE CONTRACTOR'S INVOICES BY THE PROPER PAYING OFFICE. PAYMENT WAS MADE ON THE 8TH CALENDAR DAY FOLLOWING RECEIPT OF THE CONTRACTOR'S INVOICES BY THE PROPER PAYING OFFICE.

B-165832, JAN. 16, 1969

TO LIEUTENANT DRINKWATER:

YOUR LETTER OF DECEMBER 5, 1968, REFERENCE DCRL-FOA, REQUESTS AN ADVANCE DECISION REGARDING THE CLAIM OF CONSOLIDATED ELECTRODYNAMICS CORPORATION FOR REIMBURSEMENT OF $2,602.52 WHICH REPRESENTS ALLEGEDLY UNEARNED DISCOUNT TAKEN ON CONTRACTOR'S INVOICES NUMBERED 96709 AND 99264.

AIR FORCE CONTRACT NO. 34/601/-25577, AWARDED TO CONSOLIDATED ELECTRODYNAMICS CORPORATION (CEC) ON FEBRUARY 2, 1966, CONTAINS DISCOUNT TERMS OF 4 PERCENT, 20 CALENDAR DAYS FOR EXPEDITIOUS PAYMENT.

CEC INVOICES NUMBERS 96709 AND 99264, BOTH DATED JULY 28, 1966, WERE RECEIVED BY THE PROPER PAYING OFFICE, DEFENSE CONTRACT ADMINISTRATION SERVICES REGION (DCASR), LOS ANGELES, CALIFORNIA, ON NOVEMBER 14, 1967. THE RECEIVING DATE IS BASED ON THE PERFORATED JULIAN DATE OF 67 318 (NOVEMBER 14, 1967) WHICH WAS IMPRINTED ON THE INVOICES BY THE OFFICE OF DATA AND FINANCIAL MANAGEMENT (D-AND-FM) MAIL ROOM AT THE TIME OF INITIAL RECEIPT. THE INVOICES WERE COMBINED FOR PAYMENT PURPOSES AND PAYMENT THEREOF WAS SUBSEQUENTLY MADE ON VOUCHER NO. S245 10 BY U.S. TREASURY CHECK NO. 76440 DATED NOVEMBER 21, 1967. THE DATES OF THE RECEIVING REPORTS WERE MAY 17 AND JULY 26, 1967, RESPECTIVELY, AND IT WAS ADMINISTRATIVELY DETERMINED UNDER DSAM 7000.1, PARAGRAPH 100604.1B, THAT THE DATE FOR COMPUTING THE DISCOUNT PERIOD WAS THE DATE OF RECEIPT OF THE CONTRACTOR'S INVOICES BY THE PROPER PAYING OFFICE. PAYMENT WAS MADE ON THE 8TH CALENDAR DAY FOLLOWING RECEIPT OF THE CONTRACTOR'S INVOICES BY THE PROPER PAYING OFFICE. INASMUCH AS RECORDS OF THE PAYING OFFICE HAVE NEVER INDICATED A PREVIOUS RECEIPT OF THE INVOICES FROM THE CONTRACTOR, IT WAS DETERMINED THROUGH NORMAL PAYMENT PROCESS THAT THE DISCOUNT TERMS HAD BEEN MET AND THAT THE DISCOUNT OF $2,602.52 HAD BEEN EARNED. THEREFORE, THE TOTAL PAYMENT TO CEC WAS REDUCED BY THE AMOUNT APPLICABLE TO THE DISCOUNT.

THE CONTRACT STIPULATES THAT PAYMENT WILL BE MADE BY FINANCE OFFICE, LOS ANGELES DCASR, 11099 SOUTH LA CIENEGA BOULEVARD, LOS ANGELES, CALIFORNIA 90045. THE PAYMENT CLAUSE PROVIDES THAT THE CONTRACTOR SHALL BE PAID UPON SUBMISSION OF PROPER INVOICES OR VOUCHERS.

ARMED SERVICES PROCUREMENT REGULATION 7-103.14 PROVIDES, IN PART, AS FOLLOWS:

"IN CONNECTION WITH ANY DISCOUNT OFFERED, TIME WILL BE COMPUTED FROM DATE OF DELIVERY OF THE SUPPLIES TO CARRIER WHEN ACCEPTANCE IS AT THE POINT OF ORIGIN, OR FROM DATE OF DELIVERY AT DESTINATION OR PORT OF EMBARKATION WHEN DELIVERY AND ACCEPTANCE ARE AT EITHER OF THESE POINTS, OR FROM THE DATE THE CORRECT INVOICE OR VOUCHER IS RECEIVED IN THE OFFICE SPECIFIED BY THE GOVERNMENT, IF THE LATTER IS LATER THAN 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.'

DSAM 7000.1, PARAGRAPH 100604.1B, REFERRED TO ABOVE, PROVIDES AS FOLLOWS:

"IF THE CONTRACT CONTAINS NO PROVISION STIPULATING, OR WHICH ENABLES THE ESTABLISHMENT OF, THE STARTING DATE FOR COMPUTATION OF THE DISCOUNT PERIOD WILL BE ESTABLISHED AS THE DAY FOLLOWING THE LATER OF THE FOLLOWING DATES:

"/1) DATE A CORRECT INVOICE IS RECEIVED IN THE PROPER PAYING OFFICE.

"/2) DATE THE RECEIVING REPORT WAS SIGNED. IF THE RECEIVING REPORT CONTAINS DIFFERENT DATES FOR -INCHECKER- AND -ACCEPTANCE,- THE EARLIER OF THESE TWO DATES WILL BE USED.' PARAGRAPH 100604.3 PROVIDES:

"THE PROPER PAYING OFFICE IS THE PLACE STATED IN THE PROCUREMENT DOCUMENT. IF THE VENDOR SUBMITS THE INVOICE TO THE WRONG OFFICE, THE DELAY IN RECEIPT IS THE VENDOR'S RESPONSIBILITY. THE DATE OF RECEIPT IN THE PROPER PAYING OFFICE WILL BE RECORDED ON THE INVOICE.'

SINCE DATES OF THE RECEIVING REPORTS WERE MAY 17, AND JULY 26, 1967, THE DATE FOR COMPUTING THE DISCOUNT PERIOD WAS THE DATE OF RECEIPT OF THE CONTRACTOR'S INVOICES BY THE PROPER PAYMENT OFFICE.

SINCE THE RECORD ESTABLISHES THAT PAYMENT WAS MADE WITHIN THE CONTRACTUALLY SPECIFIED TIME PERIOD AFTER RECEIPT OF THE PROPER INVOICES IN THE PAYING OFFICE, WE MUST CONCLUDE THAT THE DISCOUNT WAS PROPERLY TAKEN AND THAT PAYMENT OF RECLAIM INVOICE NO. 99264-A IS NOT AUTHORIZED. B-151143, JUNE 6, 1963; B-136708, AUGUST 20, 1958; B 108407, APRIL 18, 1952; B-94154, JULY 14, 1950.