B-162605, OCT. 30, 1967

B-162605, OCT. 30, 1967

CONTRACTS - PAYMENTS - DISCOUNTS DECISION TO CHIEF, RESOURCES ACCOUNTING DIVISION, DEFENSE SUPPLY AGENCY CONCERNING VOUCHER FOR PAYMENT OF A PROMPT PAYMENT DISCOUNT WITHHELD FROM CONTRACTOR. WHEN CONTRACTOR'S FAILURE TO COMPLY WITH PROMPT PAYMENT REQUIREMENTS IN ASPR RESULTED IN THE FIRST TWO SETS OF INVOICES NOT ENTERING THE PAYMENT SYSTEM AND WHEN PAYMENT WAS MADE WITHIN 5 DAYS AFTER RECEIPT OF PROPER INVOICE, CONTRACTOR'S CLAIM THAT DISCOUNT WAS NOT EARNED MUST BE DISALLOWED SINCE RECORD SUPPORTS THAT DISCOUNT WAS MADE WITHIN 30 DAY DISCOUNT PERIOD.

TO MAJOR LAWTON:

BY LETTER OF SEPTEMBER 29, 1967 (DSAH-CFF), THE COMPTROLLER, DEFENSE SUPPLY AGENCY, TRANSMITTED YOUR REQUEST DATED SEPTEMBER 15, 1967, FOR ADVANCE DECISION ON A VOUCHER STATED IN FAVOR OF ALDAN PLASTICS COMPANY, IN THE AMOUNT OF $371.70, REPRESENTING REFUND OF THE PROMPT PAYMENT DISCOUNT TAKEN BY THE GOVERNMENT UNDER CONTRACT DSA 100 1848.

THE CONTRACTOR STATES THAT THE ORIGINAL DD FORMS 250 WERE SUBMITTED MORE THAN 30 DAYS PRIOR TO PAYMENT, TO THE ADDRESS DCASR,OFFICE OF DATA AND FINANCIAL MANAGEMENT, P.O. BOX 7478, 2800 SOUTH 20TH STREET, PHILADELPHIA, PENNSYLVANIA 19101. HOWEVER, YOU REPORT THAT THE CONTRACTOR FAILED TO MARK THE DD FORMS 250 "ORIGINAL INVOICE" PURSUANT TO PARAGRAPH 11, STANDARD FORM 33A, AND FAILED TO MAIL THOSE INVOICES TO THE ADDRESS STATED IN THE CONTRACT, DISBURSING OFFICER, DCASR, P.O. BOX 7478, 2800 SOUTH 20TH STREET, PHILADELPHIA, PENNSYLVANIA 19101, ATT: DCASR-CAOC. FOR THESE REASONS THE ORIGINAL FORMS RECEIVED FEBRUARY 8, 1966, WERE USED FOR DELIVERY INFORMATION AND DID NOT ENTER THE PAYMENT SYSTEM. FURTHER, THE RECORD INDICATES A SECOND SET OF FORMS, RECEIVED APRIL 25, 1966, WERE RETURNED FOR PROPER IDENTIFICATION, AND THAT PAYMENT WAS MADE ON MAY 7, 1966, ON THE BASIS OF PROPERLY MARKED FORMS RECEIVED MAY 2, 1966. THEREFORE, YOU CONTEND PAYMENT WAS MADE WITHIN THE 30-DAY DISCOUNT PERIOD AND THAT THE DISCOUNT IN QUESTION WAS PROPERLY EARNED AND TAKEN BY THE GOVERNMENT.

THE CONTRACTOR, IN REBUTTAL, CONTENDS THAT THE CONTRACT DOES NOT REQUIRE THE DD FORMS 250 TO BE MARKED "ORIGINAL INVOICE" AND FURTHER THAT THE QUALITY ASSURANCE REPRESENTATIVE INSTRUCTED HIM WHEN USING THAT FORM AS AN INVOICE TO FORWARD FIVE COPIES TO DCASR, P.ATTENTION: OFFICE OF DATA AND FINANCIAL MANAGEMENT. THEREFORE, THE CONTRACTOR ALLEGES PAYMENT SHOULD HAVE BEEN MADE WITHIN 30 DAYS OF THE DATE OF RECEIPT OF THE ORIGINAL FORMS, FEBRUARY 8, 1966, AND THAT INASMUCH AS PAYMENT WAS NOT SO MADE, HE IS ENTITLED TO A REFUND OF THE DISCOUNT TAKEN BY THE GOVERNMENT.

APPENDIX I-301 OF THE ARMED SERVICES PROCUREMENT REGULATION PROVIDES:

"BLOCK 6-INVOICE NUMBER/DATE.

"/A) WHEN THE DD FORM 250 (MIRR) IS USED AS AN INVOICE, THE CONTRACTOR SHALL ENTER AN INVOICE NUMBER ON THE INVOICE COPIES.

"/B) THE CONTRACTOR SHALL ENTER ON SUCH INVOICE COPIES THE SEVEN POSITION DATE OF INVOICE PREPARATION. THE DATE SHALL CONSIST OF A TWO NUMERIC DIGIT DAY, THREE ALPHABETIC MONTH ABBREVIATION, AND THE LAST TWO DIGITS OF THE YEAR. FOR EXAMPLE, 10JUL66; 07AUG66. THE INVOICE COPIES SHALL BE OVERSTAMPED AS FOLLOWS IN LETTERS APPROXIMATELY ONE INCH HIGH, FIRST COPY: -ORIGINAL INVOICE,- OTHER COPIES: -INVOICE COPY.-"

THE RECORD INDICATES THAT THE CONTRACTOR'S FAILURE TO COMPLY WITH THE ABOVE RESULTED IN THE FIRST TWO SETS OF FORMS NOT ENTERING THE PAYMENT SYSTEM. SINCE CORRECT INVOICES IN ACCORDANCE WITH THE REQUIREMENTS OF ASPR, WERE NOT RECEIVED UNTIL MAY 2, 1966, AND PAYMENT WAS MADE ON MAY 7, 1966, WE CONCLUDE THAT THE DISCOUNT WAS CORRECTLY WITHHELD. CERTAINLY, THE VALIDITY OF THE CLAIM IS SO CLOUDED WITH DOUBT AS TO REQUIRE THE ACCOUNTING OFFICERS OF THE GOVERNMENT TO REFUSE PAYMENT UNDER THE DOCTRINE OF LONGWILL V. UNITED STATES, 17 CT. CL. 228, AND CHARLES V. UNITED STATES 19 CT. CL. 316.

FOR THE REASONS STATED, IT MUST BE CONCLUDED ON THE PRESENT RECORD THAT THE DISCOUNT TAKEN WAS PROPERLY EARNED AND, THEREFORE, PAYMENT OF THE VOUCHER, WHICH IS BEING RETAINED IN THIS OFFICE, IS NOT AUTHORIZED.