B-2347, MARCH 22, 1939, 18 COMP. GEN. 743

B-2347: Mar 22, 1939

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CONTRACTS - DISCOUNTS - OTHERWISE IDENTICAL BIDS - "2 PERCENT-10TH PROXIMO" VERSUS "2 PERCENT FOR PAYMENT WITHIN 30 DAYS" - GOVERNMENT ADVANTAGE DETERMINATION WHERE BIDS SUBMITTED UNDER INVITATIONS FOR BIDS PROVIDING THAT DISCOUNT PERIOD SHALL BEGIN TO RUN FROM DATE OF DELIVERY OR DATE THE DULY CERTIFIED INVOICE OR VOUCHER IS RECEIVED. WHICHEVER IS THE LATER. ARE ALIKE IN EVERY RESPECT WITH THE EXCEPTION OF THE TIME IN WHICH PAYMENT MUST BE MADE TO SECURE THE DISCOUNT. BIDS OFFERING "2 PERCENT FOR PAYMENT WITHIN 30 DAYS" ARE TO BE REGARDED. RELATIVE TO DETERMINING THE LOWEST BIDDER AS TO PRICE WHEN TWO OR MORE BIDS RECEIVED ARE IDENTICAL IN EVERY RESPECT WITH THE EXCEPTION OF THE TIME IN WHICH PAYMENT MUST BE MADE TO SECURE THE DISCOUNT.

B-2347, MARCH 22, 1939, 18 COMP. GEN. 743

CONTRACTS - DISCOUNTS - OTHERWISE IDENTICAL BIDS - "2 PERCENT-10TH PROXIMO" VERSUS "2 PERCENT FOR PAYMENT WITHIN 30 DAYS" - GOVERNMENT ADVANTAGE DETERMINATION WHERE BIDS SUBMITTED UNDER INVITATIONS FOR BIDS PROVIDING THAT DISCOUNT PERIOD SHALL BEGIN TO RUN FROM DATE OF DELIVERY OR DATE THE DULY CERTIFIED INVOICE OR VOUCHER IS RECEIVED, WHICHEVER IS THE LATER, ARE ALIKE IN EVERY RESPECT WITH THE EXCEPTION OF THE TIME IN WHICH PAYMENT MUST BE MADE TO SECURE THE DISCOUNT, BIDS OFFERING "2 PERCENT FOR PAYMENT WITHIN 30 DAYS" ARE TO BE REGARDED, IN MAKING AWARDS, AS MORE ADVANTAGEOUS TO THE GOVERNMENT THAN BIDS OFFERING "2 PERCENT-10TH PROXIMO.'

ACTING COMPTROLLER GENERAL ELLIOTT TO THE POSTMASTER GENERAL, MARCH 22, 1939:

THERE HAS BEEN RECEIVED YOUR LETTER OF MARCH 10, 1939, AS FOLLOWS:

A QUESTION HAS ARISEN IN THE OFFICE OF THE PURCHASING AGENT, RELATIVE TO DETERMINING THE LOWEST BIDDER AS TO PRICE WHEN TWO OR MORE BIDS RECEIVED ARE IDENTICAL IN EVERY RESPECT WITH THE EXCEPTION OF THE TIME IN WHICH PAYMENT MUST BE MADE TO SECURE THE DISCOUNT. IN OTHER WORDS,SOME BIDDERS WILL QUOTE 2 PERCENT FOR PAYMENT WITHIN 30 DAYS WHILE OTHERS SPECIFY A CASH DISCOUNT OF 2 PERCENT-10TH PROXIMO.

I WILL APPRECIATE A RULING FROM YOU AT THE EARLIEST POSSIBLE DATE WHICH WILL ASSIST THE DEPARTMENT IN DETERMINING WHICH OF THE DISCOUNTS OFFERED IS MOST ADVANTAGEOUS.

IT MAY BE ASSUMED FOR PURPOSES OF THIS DECISION THAT THE BIDS ARE SUBMITTED ON THE BASIS OF THE USUAL PRINTED INSTRUCTIONS TO THE EFFECT THAT THE DISCOUNT PERIOD BEGINS TO RUN FROM THE DATE OF DELIVERY OR THE DATE THE DULY CERTIFIED INVOICE OR VOUCHER IS RECEIVED, WHICHEVER IS THE LATER.

IF THE DATE FROM WHICH THE DISCOUNT PERIOD IS TO BEGIN TO RUN (DELIVERY OF GOODS OR VOUCHER) HAPPENS TO BE BEFORE THE 10TH DAY OF THE MONTH INVOLVED THE OFFER OF "2 PERCENT-10TH PROXIMO" WOULD GIVE A LITTLE LONGER PERIOD THAN WOULD AN OFFER OF "2 PERCENT FOR PAYMENT WITHIN 30 DAYS.' BUT IF THE DATE OF DELIVERY (GOODS OR VOUCHER) SHOULD BE ON ANY DAY OF THE MONTH AFTER THE 10TH THE OFFER OF "2 PERCENT FOR PAYMENT WITHIN 30 DAYS" WOULD BE MORE ADVANTAGEOUS TO THE GOVERNMENT, AS IN THE EVENT THE OFFER OF "2 PERCENT-10TH PROXIMO" MIGHT POSSIBLY GIVE THE GOVERNMENT ONLY 10 OR 11 DAYS AND IN NO CASE AS MUCH AS 30 DAYS IN WHICH TO MAKE PAYMENT. HENCE, SINCE THE DAY OF THE MONTH FROM WHICH THE DISCOUNT PERIOD WILL BEGIN TO RUN CANNOT BE DEFINITELY DETERMINED AT TIME OF AWARD, THE OFFER OF "2 PERCENT FOR PAYMENT WITHIN 30 DAYS" SHOULD IN ALL CASES BE REGARDED, FOR THE PURPOSE OF MAKING THE AWARD, AS MORE ADVANTAGEOUS TO THE GOVERNMENT THAN AN OFFER OF "2 PERCENT-10TH PROXIMO.'