B-134989, JUN. 12, 1958
Highlights
OF CERTAIN AMOUNTS WHICH WERE WITHHELD BY THE GOVERNMENT PENDING A DETERMINATION OF THE COMPANY'S LIABILITY. G-304 WERE ORDERED FROM THE EMECO CORPORATION BY THE GOVERNMENT ON OR ABOUT JULY 20. THAT THE LATTER'S ORDER WAS SATISFIED ON OR ABOUT FEBRUARY 22. ON WHICH DATE THE COMPANY'S ORIGINAL INVOICE FOR ITS SERVICES WAS RENDERED. WHILE THE ACTUAL TERMS OF DISCOUNT ARE NOT A PART OF THE RECORD AS SUBMITTED BY YOU. IT IS ONLY REASONABLE TO ASSUME THAT THE DISCOUNT PERIOD APPLICABLE TO THE PRESENT INVOICE LONG SINCE HAS EXPIRED. SINCE THE WITHHOLDING OF THESE AMOUNTS FROM THE COMPANY WAS FOR THE PROTECTION OR CONVENIENCE OF THE UNITED STATES. SINCE THE CONTRACTOR'S OFFER OF DISCOUNT WAS MADE IN THE EXPECTATION OF PROMPT PAYMENT FOR THE SERVICES AS COVERED BY ITS INVOICE NO.
B-134989, JUN. 12, 1958
TO MR. D. C. LYNCH, AUTHORIZED CERTIFYING OFFICER, GENERAL SERVICES ADMINISTRATION:
IN YOUR LETTER OF JUNE 4, 1958, REFERENCE CAC, YOU REQUEST A DECISION AS TO THE PROPRIETY OF REFUNDING $77.76 CASH DISCOUNT DEDUCTED WHEN MAKING PAYMENT TO THE EMECO CORPORATION, HANOVER, PENNSYLVANIA, OF CERTAIN AMOUNTS WHICH WERE WITHHELD BY THE GOVERNMENT PENDING A DETERMINATION OF THE COMPANY'S LIABILITY, IF ANY, FOR EXCESS COSTS UNDER ITS DEFAULTED CONTRACT NO. GS-00S-2657, DATED APRIL 6, 1956.
IT APPEARS THAT YOUR DENVER REGIONAL OFFICE TOOK A ONE PERCENT DISCOUNT FROM THE COMPANY'S ORIGINAL INVOICE NO. G-304 UPON THE ASSUMPTION THAT THE DISCOUNT PERIOD COMMENCED TO RUN FROM THE TIME OF RECEIPT OF INSTRUCTIONS TO RELEASE THE WITHHELD AMOUNTS, AS AUTHORIZED IN OUR DECISION OF MARCH 25, 1958, THIS FILE.
A REFERENCE TO THE COMPANY'S RECLAIM INVOICE NO. G-304-A, DATED MAY 26, 1958, DISCLOSES THAT THE SERVICES AS COVERED BY INVOICE NO. G-304 WERE ORDERED FROM THE EMECO CORPORATION BY THE GOVERNMENT ON OR ABOUT JULY 20, 1956, AND THAT THE LATTER'S ORDER WAS SATISFIED ON OR ABOUT FEBRUARY 22, 1957, ON WHICH DATE THE COMPANY'S ORIGINAL INVOICE FOR ITS SERVICES WAS RENDERED. WHILE THE ACTUAL TERMS OF DISCOUNT ARE NOT A PART OF THE RECORD AS SUBMITTED BY YOU, IT IS ONLY REASONABLE TO ASSUME THAT THE DISCOUNT PERIOD APPLICABLE TO THE PRESENT INVOICE LONG SINCE HAS EXPIRED.
SINCE THE WITHHOLDING OF THESE AMOUNTS FROM THE COMPANY WAS FOR THE PROTECTION OR CONVENIENCE OF THE UNITED STATES, AND ALSO, SINCE THE CONTRACTOR'S OFFER OF DISCOUNT WAS MADE IN THE EXPECTATION OF PROMPT PAYMENT FOR THE SERVICES AS COVERED BY ITS INVOICE NO. G-304--- WHICH CONDITION MANIFESTLY HAS NOT BEEN MET BY THE GOVERNMENT--- THE UNEARNED DISCOUNT SO DEDUCTED BY THE DENVER REGIONAL OFFICE ON THE INVOICE MENTIONED PROPERLY MAY BE REFUNDED TO THE COMPANY.