Request for Settlement Review

A firm requested a review of a Claims Division settlement disallowing its claim for reimbursement of a prompt-payment discount taken by the Navy. The firm furnished two climate changers to the Navy. The contract provided for a 2-percent prompt-payment discount if payment was made within 30 days after the Navy received the invoice. The firm contended that it mailed the original invoice on January 9, 1981, and mailed a copy on March 9, 1981. The firm argued that the Navy must have misplaced the original invoice and, since the discount period had run prior to the Navy's March 11 payment, the discount was improperly taken. The Navy argued that it never received the original invoice and so informed the firm in February 1981. Further, it received the March 9 invoice on March 10 and issued payment on March 11, thereby qualifying for the prompt-payment discount. GAO stated that the firm had failed to carry the burden of affirmatively proving its allegation and, since it can point to no evidence in the record to refute the Navy's assertions, the prompt payment period did not begin until the Navy received the March 10 invoice copy. Because payment was made on March 11, GAO concluded that the discount was properly taken. Accordingly, the previous settlement was sustained.