Navy Advance Payment For Cable Television Service

The Navy requested an advance decision regarding the legality of making advance payments to a commercial cable television company for service at a naval hospital. The Navy advised that the cable company's standard business practice is to send invoices to customers at the beginning of the month for services to be received during that month. GAO held that the Navy: (1) could not make such advance payments, since they would violate the statutory prohibition from paying in advance for goods and services; and (2) should structure its contract with the cable company so as to avoid being penalized for late payments.