B-141616, JUN. 1, 1960
Highlights
RUSS TODD: RECEIPT IS ACKNOWLEDGED OF YOUR LETTER DATED MAY 10. ARE COPIES OF THE DECISIONS CITED IN OUR LETTER DATED MARCH 21. IT IS NOTED FROM YOUR LETTER OF MAY 10. AF 35/608/-418 HAVE BEEN OVERLOOKED BY OUR OFFICE IN CONSIDERING YOUR CLAIM. PROVISION WAS MADE FOR EFFECTING AUTHORIZED DEDUCTIONS AT SPECIFIED TIMES. AS YOU WERE ADVISED IN OUR FIRST DECISION OF FEBRUARY 1. "DISCOUNTS WILL BE ALLOWED FOR PROMPT PAYMENT * * * 2 PERCENT 10 CALENDAR DAYS * * * DISCOUNT IS OCCUPIED FROM DATE OF RECEIPT OF INVOICE OR FROM DATE OF ACCEPTANCE. WHICHEVER IS THE LATER.'. IT IS OBVIOUS. THAT THE PART OF ARTICLE 7OF THE GENERAL PROVISIONS TO WHICH YOU REFER WAS INTENDED TO SET FORTH ONLY THE BASIC REQUIREMENTS FOR MAKING PARTIAL PAYMENTS.
B-141616, JUN. 1, 1960
TO MR. RUSS TODD:
RECEIPT IS ACKNOWLEDGED OF YOUR LETTER DATED MAY 10, 1960, WITH ENCLOSURE, AGAIN REFERRING TO THE DISALLOWANCE OF YOUR DISCOUNT CLAIM OF $274.70 UNDER CONTRACT NO. AF 35/608/-418, DATED MARCH 27, 1958.
HEREWITH AS REQUESTED, ARE COPIES OF THE DECISIONS CITED IN OUR LETTER DATED MARCH 21, 1960, TO YOU, AND IDENTIFIED AS 16 COMP. GEN. 325, (A- 65805); 18 ID. 799, 800, (A-93684); 31 ID. 288, (B-107112); AND 37 ID. 568, (B-133964).
IT IS NOTED FROM YOUR LETTER OF MAY 10, 1960, THAT YOU NOW CONTEND THAT CERTAIN PERTINENT PARTS OF ARTICLE 7 OF THE GENERAL PROVISIONS OF CONTRACT NO. AF 35/608/-418 HAVE BEEN OVERLOOKED BY OUR OFFICE IN CONSIDERING YOUR CLAIM. YOU TAKE THE POSITION THAT UNDER ARTICLE 7, PROVISION WAS MADE FOR EFFECTING AUTHORIZED DEDUCTIONS AT SPECIFIED TIMES--- UPON COMPLETION AND ACCEPTANCE--- AND, THEREFORE, NO PART OF THE SPECIAL PROVISIONS OF THE CONTRACT MAY BE ACCEPTED AS NULLIFYING THE GENERAL PROVISIONS IN THIS REGARD IN THE ABSENCE OF AN EXPRESS DELETION.
AS YOU WERE ADVISED IN OUR FIRST DECISION OF FEBRUARY 1, 1960, A RELEVANT PART OF THE BID FORM PROVIDED THAT,"DISCOUNTS WILL BE ALLOWED FOR PROMPT PAYMENT * * * 2 PERCENT 10 CALENDAR DAYS * * * DISCOUNT IS OCCUPIED FROM DATE OF RECEIPT OF INVOICE OR FROM DATE OF ACCEPTANCE, WHICHEVER IS THE LATER.' HENCE, IT IS OBVIOUS, FROM THE INCLUSION OF SUCH EXPRESS DISCOUNT TERMS, THAT THE PART OF ARTICLE 7OF THE GENERAL PROVISIONS TO WHICH YOU REFER WAS INTENDED TO SET FORTH ONLY THE BASIC REQUIREMENTS FOR MAKING PARTIAL PAYMENTS, ETC., UNDER THE CONTRACT. IN NO WAY WAS ARTICLE 7 INTENDED TO INCLUDE DISCOUNTS WITHIN THE "AUTHORIZED DEDUCTIONS" SET FORTH THEREIN, NOR WAS IT INTENDED TO SET FORTH THE DETAILS FOR DETERMINING WHEN DISCOUNT WAS PROPERLY EARNED. FURTHERMORE, WE FIND NOTHING CONTRADICTORY BETWEEN THE EXPRESS DISCOUNT TERMS SET FORTH ABOVE AND ARTICLE 7 OF THE GENERAL PROVISIONS. THE DISCOUNT TERMS MERELY SUPPLEMENT THE SAID GENERAL PAYMENT PROVISIONS INSOFAR AS THE REQUIRED DETAILS ARE CONCERNED.