B-169682(3), FEB 2, 1971

B-169682(3): Feb 2, 1971

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WHERE A PROVISION OF THE CONTRACT WHICH PROVIDES THAT IF THE DATE ON WHICH A CORRECT INVOICE OR VOUCHER IS RECEIVED IN THE OFFICE SPECIFIED BY THE GOVERNMENT IS LATER THAN THE DATE OF DELIVERY. THE TIME FOR TAKING THE DISCOUNT WILL BE COMPUTED FROM THE DATE THE INVOICE IS RECEIVED. FAILS TO INDICATE WHERE OR BY WHOM IT WAS RECEIVED. GAO WILL ACCEPT THE ADMINISTRATIVE POSITION AND WILL SUSTAIN THE DISALLOWANCE OF THE CLAIM. TO PROFESSIONAL CARPET SERVICE: THIS IS IN REPLY TO YOUR LETTER OF NOVEMBER 25. YOU ARGUE THAT THE 20 DAY PERIOD FOR TAKING THE PROMPT PAYMENT DISCOUNT LAPSED PRIOR TO PAYMENT SINCE IT BEGAN TO RUN FROM THE DATE THE SERVICES WERE DELIVERED. WHICH YOU CLAIM WAS NOVEMBER 22.

B-169682(3), FEB 2, 1971

PROMPT PAYMENT DISCOUNT DECISION SUSTAINING THE DISALLOWANCE OF CLAIM BY PROFESSIONAL CARPET SERVICE FOR THE PROMPT PAYMENT DISCOUNT DEDUCTED BY THE NATIONAL INSTITUTES OF HEALTH FROM AN INVOICE FOR $978.46. WHERE A PROVISION OF THE CONTRACT WHICH PROVIDES THAT IF THE DATE ON WHICH A CORRECT INVOICE OR VOUCHER IS RECEIVED IN THE OFFICE SPECIFIED BY THE GOVERNMENT IS LATER THAN THE DATE OF DELIVERY, THE TIME FOR TAKING THE DISCOUNT WILL BE COMPUTED FROM THE DATE THE INVOICE IS RECEIVED, AND CLAIMANT SUBMITS A COPY OF THE INVOICE WITH THE STAMPED RECEIVING DATE OF NOVEMBER 22, 1968, BUT FAILS TO INDICATE WHERE OR BY WHOM IT WAS RECEIVED, THE NIH HAVING SUBMITTED A COPY OF THE INVOICE SIGNED AND DATED DECEMBER 2, 1968, THEN IN THE ABSENCE OF ANY ADDITIONAL EVIDENCE, GAO WILL ACCEPT THE ADMINISTRATIVE POSITION AND WILL SUSTAIN THE DISALLOWANCE OF THE CLAIM.

TO PROFESSIONAL CARPET SERVICE:

THIS IS IN REPLY TO YOUR LETTER OF NOVEMBER 25, 1970, REQUESTING, IN EFFECT, RECONSIDERATION OF THE DISALLOWANCE BY OUR CLAIMS DIVISION DATED NOVEMBER 20, 1970, OF YOUR CLAIM (Z-2363901(6)) UNDER GENERAL SERVICES ADMINISTRATION CONTRACT NO. GS-035-29827.

YOUR LETTER APPEARS TO QUESTION THE DISALLOWANCE OF YOUR CLAIM FOR THE PROMPT PAYMENT DISCOUNT DEDUCTED BY THE NATIONAL INSTITUTES OF HEALTH, DEPARTMENT OF HEALTH, EDUCATION AND WELFARE, (NIH) FROM THE INVOICE FOR $978.46. YOU ARGUE THAT THE 20 DAY PERIOD FOR TAKING THE PROMPT PAYMENT DISCOUNT LAPSED PRIOR TO PAYMENT SINCE IT BEGAN TO RUN FROM THE DATE THE SERVICES WERE DELIVERED, WHICH YOU CLAIM WAS NOVEMBER 22, RATHER THAN FROM DECEMBER 2, THE DATE THE GOVERNMENT CONTENDS THE SUBJECT INVOICE WAS SIGNED AND DATED AS RECEIVED IN THE OFFICE SPECIFIED BY THE GOVERNMENT.

IN CONNECTION WITH THE TAKING OF DISCOUNTS, SECTION 9(B) OF THE SOLICITATION INSTRUCTIONS AND CONDITIONS, STANDARD FORM 33A, JULY 1966, WHICH WAS INCORPORATED INTO THE CONTRACT INVOLVED HERE, PROVIDES, IN PERTINENT PART, THAT IF THE DATE ON WHICH A CORRECT INVOICE OR VOUCHER IS RECEIVED IN THE OFFICE SPECIFIED BY THE GOVERNMENT IS LATER THAN THE DATE OF DELIVERY, THE TIME FOR TAKING THE DISCOUNT WILL BE COMPUTED FROM THE DATE THE INVOICE IS RECEIVED. TO THE SAME EFFECT SEE OUR DECISION TO YOU OF AUGUST 19, 1970, B-169682.

IN THIS CONNECTION WE NOTE THAT THE COPY OF THE INVOICE WHICH YOU SUBMITTED IN SUPPORT OF YOUR CLAIM SHOWS A STAMPED RECEIVING DATE OF NOVEMBER 22, 1968, BUT FAILS TO INDICATE WHERE OR BY WHOM IT WAS RECEIVED ON THAT DATE. ON THE OTHER HAND, NIH HAS SUBMITTED A COPY OF THE INVOICE IN ITS POSSESSION WHICH WAS SIGNED AND DATED AS RECEIVED ON DECEMBER 2, 1968, IN THE OFFICE SPECIFIED BY THE GOVERNMENT. AS BETWEEN THESE TWO INVOICES IT IS OUR OPINION THE ONE PRESENTED BY NIH IS MORE CONVINCING, AND IN THE ABSENCE OF ANY ADDITIONAL EVIDENCE OR CONVINCING EXPLANATION AS TO WHY YOUR UNSIGNED INVOICE IS CORRECT AND THE NIH INVOICE IS INCORRECT WE ARE REQUIRED TO ACCEPT THE ADMINISTRATIVE POSITION IN THE MATTER.

SINCE THE NIH INVOICE SHOWS THAT IT WAS RECEIVED IN THE OFFICE SPECIFIED BY THE GOVERNMENT ON DECEMBER 2, 1968, IN ACCORDANCE WITH THE ABOVE STATED CONTRACT PROVISIONS, AND SINCE PAYMENT WAS MADE WITHIN 20 DAYS THEREAFTER BY CHECK DATED DECEMBER 17, 1968, WE MUST CONCLUDE THAT THE DISCOUNT WAS EARNED BY THE GOVERNMENT.

ACCORDINGLY, THE ABOVE REFERENCED DISALLOWANCE OF YOUR CLAIM MUST BE SUSTAINED.