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B-237789 1 (1990-12-10)

handle is hein.gao/gaobadbyz0001 and id is 1 raw text is: Comptroller General of the United States Washlagton, D.C. 20648 Decision Matter of: Navy, Advance Payment For Cable Television Service File: B-237789 Date: December 10, 1990 DIGEST Naval hospital may not make advance payments for cable television service. The United States Government is prohibited by 31 U.S.C. § 3324(a) from paying in advance for goods and services. Exceptions to the advance payment prohibition such as 10 U.S.C. 5 2307 and 41 U.S.C. § 255 are not applicable to utility service contracts for the provision of cable television service. DECISION The Navy Accounting and Finance Center, Washington, D.C., requested an advance decision on the legality of making advance payments to a commercial cable television company for service at a Naval Hospital. For the reasons indicated below, we hold that advance payments may not be made. Instead, payments may be made only after service is rendered. BACKGROUND The Commanding Officer, Naval Hospital, Oak Harbor, Washington, entered into a utility service contract (N62474- 89-M-7008) with Viacom Cablevision to provide cable television service to hospital patients. According to the submission, the cable television contractor's standard business practice is to send invoices to customers at the beginning of the month for services to be received during that month. The Naval Hospital is seeking to make payment wit'iin 30 days of the invcice date, rather than after an entire month's services are rendered. Payments will be made from appropriated funds. DISCUSSION Under 31 U.S.C. § 3324 (a) (19881 'the United States is prohibited from paying in advance for goods and services. The statute states, in pertinent part, that a payment under a contract to provide a service . . . for the United States Government may not be more than the value of the service already provided. . . . In the case of cable television service, this means that the government can pay only for

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