B-89345, OCTOBER 6, 1949, 29 COMP. GEN. 170

B-89345: Oct 6, 1949

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THERE BEING NO POSSIBILITY OF DUPLICATE PAYMENT WHERE INVOICES EVIDENCING DELIVERY ARE ATTACHED TO THE VOUCHERS. IT APPEARING THAT BOTH THE SERVICE STATION PRICE AND THE AMOUNT SHOWN ON EACH INDIVIDUAL INVOICE AS THE SALES PRICE WERE STATED IN CANADIAN CURRENCY. 1949: REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 16. IS IN CONTRAVENTION OF SECTION 3477. (2) WHETHER THE VOUCHERS SHOULD BE CERTIFIED FOR PAYMENT IN UNITED STATES FUNDS OR CANADIAN DOLLARS TO OBTAIN THE BENEFIT OF THE FAVORABLE RATE OF EXCHANGE AT WHICH THE TREASURY DEPARTMENT IS ABLE TO EFFECT PAYMENT FOR GASOLINE PURCHASES MADE IN CANADA. IT WAS HELD IN 16 COMP. WHAT ARRANGEMENTS ARE MADE BETWEEN THE TEXAS COMPANY AND ITS AGENTS SO THAT THE SAID AGENTS RECEIVE PAYMENT.

B-89345, OCTOBER 6, 1949, 29 COMP. GEN. 170

GASOLINE AND OIL - GOVERNMENT PURCHASES BY CREDIT CARD - ASSIGNMENTS A MUTUAL AGREEMENT BETWEEN A GOVERNMENT GASOLINE CONTRACTOR AND ANOTHER OIL COMPANY, WHEREBY DEALERS OF EACH COMPANY WOULD HONOR CREDIT CARDS ISSUED BY THE OTHER, NEED NOT BE REGARDED AS IN CONTRAVENTION OF SECTION 3477, REVISED STATUTES, PROHIBITING THE ASSIGNMENT OF CLAIMS AGAINST THE UNITED STATES, SO THAT PAYMENT MAY BE MADE DIRECTLY TO THE GOVERNMENT CONTRACTOR FOR GASOLINE FURNISHED A GOVERNMENT AGENCY, PURSUANT TO A CREDIT CARD ISSUED BY THE CONTRACTOR, BY A DEALER OF THE OTHER COMPANY, AS ITS AGENT, THERE BEING NO POSSIBILITY OF DUPLICATE PAYMENT WHERE INVOICES EVIDENCING DELIVERY ARE ATTACHED TO THE VOUCHERS. GASOLINE PURCHASED IN CANADA FROM A CANADIAN DEALER BY EMPLOYEES FOR OFFICIAL USE PURSUANT TO A GOVERNMENT CREDIT CARD ISSUED BY A DOMESTIC OIL COMPANY UNDER A GOVERNMENT CONTRACT PROVIDING FOR BILLING AT THE SERVICE STATION PRICE AT THE DATE AND POINT OF DELIVERY MAY BE PAID FOR IN CANADIAN DOLLARS, IT APPEARING THAT BOTH THE SERVICE STATION PRICE AND THE AMOUNT SHOWN ON EACH INDIVIDUAL INVOICE AS THE SALES PRICE WERE STATED IN CANADIAN CURRENCY.

COMPTROLLER GENERAL WARREN TO W. R. DILLON, DEPARTMENT OF THE INTERIOR, OCTOBER 6, 1949:

REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 16, 1949, FORWARDING VOUCHER STATED IN FAVOR OF THE TEXAS COMPANY, OLNEY ROAD AND GRANBY STREET, NORFOLK 1, VIRGINIA, IN THE AMOUNT OF $14.27, FOR GASOLINE PURCHASED IN CANADA BY EMPLOYEES OF THE FISH AND WILDLIFE SERVICE FOR OFFICIAL USE PURSUANT TO GOVERNMENT CREDIT CARD NO. D-90744 ISSUED BY THE TEXAS COMPANY.

IT APPEARS THAT, PURSUANT TO AN ARRANGEMENT BY SUCH COMPANY WITH THE MCCOLL-FRONTENAC OIL CO., LIMITED, OF CANADA, WHEREBY DEALERS OF EACH COMPANY WOULD HONOR CREDIT CARDS ISSUED BY THE OTHER, EMPLOYEES OF THE FISH AND WILDLIFE SERVICE ON THE ABOVE CREDIT CARD, DURING THE PERIOD JUNE 13 TO 29, 1949, SECURED THE INVOLVED GASOLINE FROM A SERVICE STATION OPERATED BY S. W. MCVETY, OAKLAND, MANITOBA, CANADA, A DEALER IN THE PRODUCTS OF THE MCCOLL-FRONTENAC OIL CO., LIMITED, WHO ASSIGNED THE ACCOUNT TO SUCH COMPANY, WHICH IN TURN, PURSUANT TO THE ARRANGEMENT WITH THE TEXAS COMPANY, RECEIVED CREDIT FROM THAT COMPANY FOR THE DELIVERIES OF GASOLINE. YOU REQUEST DECISION (1) WHETHER CERTIFICATION OF THE INSTANT VOUCHER--- IN VIEW OF THE ASSIGNMENT OF THE CLAIM FROM S. W. MCVETY TO THE MCCOLL-FRONTENAC OIL CO., AND THE MANNER OF BILLING -- IS IN CONTRAVENTION OF SECTION 3477, REVISED STATUTES, 31 U.S.C. 203; AND, IF NOT, (2) WHETHER THE VOUCHERS SHOULD BE CERTIFIED FOR PAYMENT IN UNITED STATES FUNDS OR CANADIAN DOLLARS TO OBTAIN THE BENEFIT OF THE FAVORABLE RATE OF EXCHANGE AT WHICH THE TREASURY DEPARTMENT IS ABLE TO EFFECT PAYMENT FOR GASOLINE PURCHASES MADE IN CANADA.

IN ANSWER TO THE QUESTION AS TO WHETHER PAYMENT MAY BE MADE TO THE PARENT COMPANY, OR CONTRACTOR, FOR GASOLINE FURNISHED BY INDIVIDUAL DEALERS IN THAT COMPANY'S PRODUCT ON CREDIT CARDS OF THE CONTRACTOR, IT WAS HELD IN 16 COMP. GEN. 553, 556, THAT---

* * * WHERE A CONTRACTOR MAKES ARRANGEMENTS WITH INDIVIDUAL DEALERS IN A STATE HANDLING ITS PRODUCTS TO HONOR REQUISITIONS (IN THE FORM OF CREDIT CARDS OR OTHERWISE) FOR GASOLINE AND OIL BY FURNISHING SUCH SUPPLIES TO THE GOVERNMENT FOR THE CONTRACTOR'S ACCOUNT, IT WOULD SEEM CLEAR THAT THE INDIVIDUAL DEALER WOULD BE ACTING ONLY AS AGENT FOR THE CONTRACTOR, AND THERE WOULD BE NO LEGAL OBJECTION TO PAYING THE CONTRACTOR FOR THE SUPPLIES SO FURNISHED THE GOVERNMENT BY THE CONTRACTOR'S AGENT. * * *

WHILE S. W. MCVETY APPEARS TO BE A DEALER IN THE PRODUCTS OF THE MCCOLL- FRONTENAC CO., RATHER THAN THE TEXAS COMPANY, WHEN PURSUANT TO THE MUTUAL AGREEMENT BETWEEN THE TWO COMPANIES HE FURNISHES GASOLINE FOR THE ACCOUNT OF THE TEXAS COMPANY PURSUANT TO ITS CREDIT CARD, HE PROPERLY MAY BE CONSIDERED TO BE ACTING AS AGENT OF THE TEXAS COMPANY, AND THERE APPEARING TO BE NO POSSIBILITY OF DUPLICATE PAYMENT--- THE INVOICES EVIDENCING DELIVERY BEING ATTACHED TO THE VOUCHERS--- THERE APPEARS NO LEGAL OBJECTION TO PAYMENT TO THE TEXAS COMPANY FOR THE SAID SUPPLIES. WHAT ARRANGEMENTS ARE MADE BETWEEN THE TEXAS COMPANY AND ITS AGENTS SO THAT THE SAID AGENTS RECEIVE PAYMENT, AND WHETHER ASSIGNMENTS ARE USED IN CONNECTION WITH SUCH ARRANGEMENTS, APPEAR NOT TO AFFECT THE TRANSACTION AS BETWEEN THE UNITED STATES AND THE TEXAS COMPANY. YOUR FIRST QUESTION, ACCORDINGLY, IS ANSWERED IN THE NEGATIVE.

AS TO THE SECOND, IT APPEARS THAT, UNDER THE INVOLVED CREDIT CARD ARRANGEMENT, THE UNDERSTANDING BETWEEN THE UNITED STATES AND THE TEXAS COMPANY WAS THAT BILLING WOULD BE MADE NOT AT ANY SPECIFIED CONTRACT RATE BUT AT THE SERVICE STATION PRICE AT THE DATE AND POINT OF DELIVERY, AND THAT STATE OR LOCAL TAXES WOULD BE EXCLUDED. SINCE THE INSTANT DELIVERIES WERE MADE IN CANADA BY A CANADIAN DEALER, IT REASONABLY APPEARS THAT THE SERVICE STATION PRICE WOULD BE IN TERMS OF CANADIAN CURRENCY, AND THAT THE AMOUNT SHOWN ON EACH INDIVIDUAL INVOICE AS THE SALES PRICE IS STATED IN CANADIAN CURRENCY. ALSO, SINCE THE AMOUNT OF THE VOUCHER REPRESENTS THE AGGREGATE OF THE INDIVIDUAL INVOICES, IT APPEARS THAT THE AMOUNT BILLED IS IN CANADIAN CURRENCY. ACCORDINGLY, SINCE THE AMOUNT DUE APPEARS TO BE $14.27 CANADIAN DOLLARS, AND THE BILLING APPEARS TO BE FOR SUCH AMOUNT, THE VOUCHER SHOULD BE CERTIFIED FOR PAYMENT IN CANADIAN FUNDS.