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WE HAVE REVIEWED THE RECORD IN THIS CASE. WE ARE TODAY AUTHORIZING OUR CLAIMS DIVISION TO ISSUE A SETTLEMENT ALLOWING THE CLAIM. BY NECESSARY IMPLICATION WHENEVER THERE IS INVOLVED ANY CLAIM OR DEMAND WHATEVER BY THE UNITED STATES AGAINST ANY PERSON OR ENTITY HAVING A CLAIM AGAINST THE GOVERNMENT. THIS OFFICE NOT ONLY HAS THE AUTHORITY BUT IS REQUIRED IN THE PROPER EXERCISE OF ITS DUTIES TO SET OFF ONE INDEBTEDNESS AGAINST THE OTHER AND TO CERTIFY FOR PAYMENT.

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B-152507, NOV. 29, 1963

TO BENDIX FIELD ENGINEERING CORPORATION:

THIS REFERS TO YOUR LETTER OF AUGUST 30, 1963, REQUESTING REVIEW OF OUR SETTLEMENT OF AUGUST 2, 1963, WHICH DISALLOWED THE CLAIM OF THE BENDIX CORPORATION FOR ADDITIONAL COSTS OF ONE OF ITS EMPLOYEES (5 DAYS COMPENSATION) INCURRED DURING THE PERIOD OCTOBER 26, 1959, TO NOVEMBER 2, 1959, IN OBTAINING A RENEWAL OF HIS PASSPORT.

WE HAVE REVIEWED THE RECORD IN THIS CASE. UPON THE EVIDENCE NOW BEFORE US, WE ARE TODAY AUTHORIZING OUR CLAIMS DIVISION TO ISSUE A SETTLEMENT ALLOWING THE CLAIM.

IN YOUR LETTER OF AUGUST 30 YOU QUESTION THE AUTHORITY OF THE GENERAL ACCOUNTING OFFICE TO SET OFF OVERPAYMENTS UNDER ONE CONTRACT AGAINST PAYMENTS DUE BY THE GOVERNMENT UNDER A DIFFERENT CONTRACT.

SECTION 236, REVISED STATUTES, AS AMENDED BY SECTION 305 OF THE BUDGET AND ACCOUNTING ACT OF JUNE 10, 1921, 42 STAT. 24, 31 U.S.C. 71, PROVIDES THAT THE GENERAL ACCOUNTING OFFICE SHALL SETTLE AND ADJUST ALL CLAIMS, BOTH IN FAVOR OF AND AGAINST THE UNITED STATES. BY NECESSARY IMPLICATION WHENEVER THERE IS INVOLVED ANY CLAIM OR DEMAND WHATEVER BY THE UNITED STATES AGAINST ANY PERSON OR ENTITY HAVING A CLAIM AGAINST THE GOVERNMENT, THIS OFFICE NOT ONLY HAS THE AUTHORITY BUT IS REQUIRED IN THE PROPER EXERCISE OF ITS DUTIES TO SET OFF ONE INDEBTEDNESS AGAINST THE OTHER AND TO CERTIFY FOR PAYMENT, OR COLLECTION, ONLY THE BALANCE FOUND DUE ON ONE SIDE OR THE OTHER. IN SUTTON V. UNITED STATES, 256, U.S. 575, THE SUPREME COURT OF THE UNITED STATES SAID THAT AN UNAUTHORIZED PAYMENT TO A GOVERNMENT CONTRACTOR MAY BE DEDUCTED FROM PAYMENTS THEREAFTER MADE TO THE SAME CONTRACTOR FOR WORK UNDER A WHOLLY DIFFERENT CONTRACT. SEE, ALSO, UNITED STATES V. MUNSEY TRUST CO., 332 U.S. 234; CHERRY COTTON MILLS V. UNITED STATES, 327 U.S. 536.

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