A-49009, NOV. 20, 1957

A-49009, NOV. 20, 1957

TO MR. FRED O. HOLLADAY, ASSISTANT GENERAL SALES MANAGER, VOICE WRITER DIVISION, THOMAS A. EDISON INDUSTRIES:

WE HAVE FOR CONSIDERATION YOUR LETTER OF NOVEMBER 1, 1957, WITH ENCLOSURES, ADDRESSED TO MR. BYRON K. BURKE, 1523 L STREET, N.W., WASHINGTON 5, D.C., REGARDING OUR CIRCULAR LETTER DATED AUGUST 12, 1957, A -49009, READING AS FOLLOWS:

"TO THE HEADS OF DEPARTMENTS, INDEPENDENT ESTABLISHMENTS, AND OTHERS CONCERNED:

"SEVERAL LARGE BUSINESS ORGANIZATIONS WHO HAVE CONTRACTS AS VENDORS TO THE U.S. GOVERNMENT SUPPLY THEIR PRODUCTS THROUGH BRANCH OR FIELD PLANTS TO THE VARIOUS AGENCY INSTALLATIONS. USUALLY, THE INVOICES OR BILLS ISSUE FROM THE BRANCH OR FIELD PLANTS AND ARE PAYABLE TO SUCH PLANTS RATHER THAN THE HOME OR CENTRAL OFFICE OF THE VENDOR.

"RECENTLY, COMPLAINTS HAVE BEEN RECEIVED THAT THE PAYMENTS (CHECKS) ARE BEING SENT TO THE HOME OR CENTRAL OFFICE WHEN SUCH PAYMENTS SHOULD BE SENT TO THE BRANCH OR FIELD PLANT ISSUING THE BILL. WHILE THE CHECKS, IN MOST INSTANCES, SHOW A REFERENCE TO A BILL OR INVOICE NUMBER, AS PROVIDED FOR IN GENERAL REGULATIONS NO. 115-REVISED, DATED SEPTEMBER 18, 1952, SUCH NUMBER IS ONLY IDENTIFIABLE BY THE OFFICE ISSUING THE BILL OR INVOICE.

"ALL AGENCIES ARE THEREFORE REQUESTED TO BRING THIS MATTER TO THE ATTENTION OF THE APPROPRIATE PERSONNEL IN ORDER THAT GOVERNMENT PAYMENTS (CHECKS) WILL BE DIRECTED TO THE PROPER OFFICE OF THE VENDOR AND AVOID PAYMENT CONFUSION.'

YOU REQUEST ADVICE AS TO WHETHER OUR LETTER "APPLIES TO FACTORY BRANCH OFFICES ONLY, OR WHETHER IT CAN BE INTERPRETED TO MEAN DISTRIBUTORS AND DEALERS AS WELL AS OUR OWN FACTORY BRANCH OFFICES.' THE QUESTION ARISES IN VIEW OF A LETTER DATED OCTOBER 22, 1957, REFERENCE SYMS-YORK JOB 37082, FROM THE BUREAU OF PUBLIC ROADS, REGION EIGHT, TO YOUR COMPANY, WHICH RETURNED WITHOUT PAYMENT YOUR INVOICE NO. E12 10 9 DATED OCTOBER 10, 1957, FOR $719.44 FOR THE REASON THAT "PAYMENT IS BEING MADE TO SYMS-YORK COMPANY, 825 JEFFERSON STREET, BOISE, IDAHO INASMUCH AS THEIR INVOICE HAD BEEN PREVIOUSLY RECEIVED AND HAD BEEN AUDITED AND PROCESSED FOR PAYMENT.' THE LETTER FURTHER EXPLAINED THAT WHILE BILLINGS IN THE PAST, WERE REQUIRED FROM THE CONTRACTOR RATHER THAN FROM HIS AUTHORIZED DEALER, SUCH REQUIREMENT WAS ELIMINATED BY OUR CIRCULAR LETTER OF AUGUST 12. ALSO, THE LETTER SUGGESTED THAT YOUR COMPANY ADVISE THE BUREAU IN THE EVENT IT FOUND THE PROCEDURE TO BE UNSATISFACTORY.

THE CIRCULAR LETTER WAS NOT INTENDED TO CHANGE THE ESTABLISHED BILLING PROCEDURES OF GOVERNMENT CONTRACTORS OR THE MANNER OF EFFECTING PAYMENT OF THE GOVERNMENT'S OBLIGATIONS. THE LETTER MERELY WAS INTENDED TO FACILITATE PAYMENT TO CERTAIN CONTRACTORS WHO FURNISH THEIR PRODUCTS TO THE VARIOUS AGENCY INSTALLATIONS AND ISSUE BILLINGS THEREFOR THROUGH THEIR OWN BRANCH OR FIELD PLANTS.

SOME OF THESE CONTRACTORS COMPLAINED THAT PAYMENTS WERE BEING MADE TO THEIR HOME OR CENTRAL OFFICES WHEREIN THEY HAD LITTLE OR NO INFORMATION REGARDING THE NATURE THEREOF. THEY SAID THAT SINCE THEIR BRANCH OR FIELD PLANTS SUPPLIED THE PRODUCTS TO THE AGENCY INSTALLATIONS AND ISSUED BILLINGS THEREON THE PAYMENTS PROPERLY SHOULD BE SENT DIRECTLY TO THEM. TO AVOID DELAY AND CONFUSION IN THE HANDLING OF SUCH TRANSACTIONS OUR LETTER REQUESTED GOVERNMENT AGENCIES TO INFORM THEIR APPROPRIATE PERSONNEL TO SEND REMITTANCES TO THE PROPER OFFICE OF THE VENDOR.

A COPY OF THIS LETTER IS BEING SENT TO MR. BURKE AS WELL AS TO THE BUREAU OF PUBLIC ROADS, REGION EIGHT. YOUR LETTER OF NOVEMBER 1 AND ENCLOSURES ARE RETURNED HEREWITH.