[Appeal of Settlement Disallowing Claim for Prompt Payment Discounts Taken by DCA]

A firm appealed a Claims Group settlement which disallowed its claim for prompt payment discounts taken by the Defense Contract Administration (DCA) under an Army contract. The contract provided for a 1-percent discount for payments made within 20 days. The firm submitted an invoice to DCA alleging that DCA had taken discounts under the contract for payments received after the 20-day discount period. DCA initially refunded a portion of the claim. The firm submitted the balance of the claim to the Claims Group which showed that it calculated the 20-day period from the date the government's checks were received rather than the date on which the checks were mailed. The Claims Group disallowed the claim and found nothing in the record to support the firm's claim. GAO stated that, under the contract, payment is deemed to be made on the date of mailing. Accordingly, the Claims Group disallowance of the claim was affirmed.