B-175964, JUL 12, 1972

B-175964: Jul 12, 1972

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PAYMENT ON A QUANTUM VALEBAT BASIS WOULD NOT BE PROPER SINCE THE DISCS HAVE NOT BEEN USED FOR THE BENEFIT OF THE UNITED STATES. ASKING WHETHER IT IS PROPER TO PROCESS THE ENCLOSED VOUCHER TO ACCOMPLISH PAYMENT TO NYLONCRAFT. THIS AMOUNT IS STATED TO REPRESENT THE REASONABLE VALUE OF 463. 000 PLASTIC DISCS WHICH ARE USED IN PACKAGING THE MINT'S 1971 UNCIRCULATED EISENHOWER DOLLAR. WE UNDERSTAND THE OVERRUN WAS SHIPPED TO THE NEW YORK ASSAY OFFICE WITHOUT ITS REQUEST OR AUTHORIZATION. WE ARE ADVISED THAT IT IS UNCERTAIN WHETHER THE OVERRUN QUANTITY IN QUESTION WILL BE NEEDED. ACCEPTANCE OF THE OVERRUN IS NOT AUTHORIZED UNDER THE CONTRACT. THE RECORD DOES NOT INDICATE THAT THERE IS AN ACTUAL.

B-175964, JUL 12, 1972

PROCUREMENT LAW - OVERRUN AMOUNT - PROPRIETY OF PAYMENT CONCERNING THE PROPRIETY OF PAYMENT TO NYLONCRAFT, INC., OF THE REASONABLE VALUE OF A PRODUCTION OVERRUN QUANTITY OF PLASTIC DISCS USED BY THE MINT IN PACKAGING UNCIRCULATED EISENHOWER DOLLARS. PAYMENT ON A QUANTUM VALEBAT BASIS WOULD NOT BE PROPER SINCE THE DISCS HAVE NOT BEEN USED FOR THE BENEFIT OF THE UNITED STATES. ACCORDINGLY, THE UNAUTHORIZED OVERAGE SHOULD BE RETURNED TO THE CONTRACTOR.

TO MRS. MARY BROOKS:

WE REFER TO YOUR LETTER OF MAY 11, 1972, WITH ENCLOSURE, ASKING WHETHER IT IS PROPER TO PROCESS THE ENCLOSED VOUCHER TO ACCOMPLISH PAYMENT TO NYLONCRAFT, INC., IN THE AMOUNT OF $3,588.25. THIS AMOUNT IS STATED TO REPRESENT THE REASONABLE VALUE OF 463,000 PLASTIC DISCS WHICH ARE USED IN PACKAGING THE MINT'S 1971 UNCIRCULATED EISENHOWER DOLLAR.

THE QUANTITY OF DISCS IN QUESTION REPRESENTS A PRODUCTION OVERRUN OF CONTRACT NO. B71345S, WHICH CALLED FOR A TOTAL OF 10 MILLION DISCS AT A UNIT PRICE OF $7.75 PER THOUSAND. WE UNDERSTAND THE OVERRUN WAS SHIPPED TO THE NEW YORK ASSAY OFFICE WITHOUT ITS REQUEST OR AUTHORIZATION. YOU ADVISE THAT THIS QUANTITY MAY COMPLETE YOUR REQUIREMENTS FOR 1972; HOWEVER, WE ARE ADVISED THAT IT IS UNCERTAIN WHETHER THE OVERRUN QUANTITY IN QUESTION WILL BE NEEDED.

ACCEPTANCE OF THE OVERRUN IS NOT AUTHORIZED UNDER THE CONTRACT, AND IT FURTHER APPEARS THAT NO AUTHORIZED OFFICER OF THE MINT HAS PURPORTED TO ACCEPT THE DISCS. MOREOVER, THE RECORD DOES NOT INDICATE THAT THERE IS AN ACTUAL, CURRENT NEED FOR THE DISCS. WE HAVE, IN A NUMBER OF CASES, RECOGNIZED A CONTRACTOR'S ENTITLEMENT TO PAYMENT ON A QUANTUM VALABAT BASIS WHERE AN UNAUTHORIZED OVERAGE HAS BEEN ACCEPTED AND USED FOR THE BENEFIT OF THE UNITED STATES, E.G. B-163644, MARCH 14, 1968; B 163431, FEBRUARY 21, 1968; AND B-167576, OCTOBER 14, 1969. HOWEVER, THE CIRCUMSTANCES OUTLINED ABOVE DO NOT PRESENT A BASIS FOR APPLYING THIS EXCEPTION. CONSEQUENTLY, PAYMENT OF THE AMOUNT CLAIMED WOULD NOT BE PROPER AND THE UNAUTHORIZED OVERRUN SHOULD BE RETURNED TO THE CONTRACTOR. THE VOUCHER IS RETURNED HEREWITH.