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B-190365 1 (1979-06-19)

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FILE: B-190365


THE  COMPTROLLER GENERAL
OF   THE UNITED STATES
WASHINGTON, D.C. 20548




       DATE:   June 19,  979


MATTER OF:Navy, Army and Air Force Institutes   -- Payment of
              Invoice


DIGEST:


Navy vessel requisitioned perishable goods from supplier and
was subsequently diverted to different location, but did not
cancel requisition. Supplier delivered goods to designated
location.  Navy never formally accepted goods but goocb were
moved by Navy to second location, where they were rejected
because they had deteriorated. Navy did not notify supplier
until next day.  Since movement of goods was inconsistent
with seller's ownership and could therefore be deemed con-
structive acceptance, and in view of delay in notification
and fact that requisition had not been cancelled, invoice
from supplier may be paid.


     This responds to a request from the Department of the Navy,
Fleet Accounting and Disbursing Center, Norfolk, Virginia, for an
advance decision pursuant to 31 U.S.C. V74 (1976) on the propriety
of payment of an invoice. The invoice, in the amount of 98.50 pounds
sterling, was sent to the Navy for payment by the Navy, Army and Air
Force Institutes (NAAFI) of Nottingham, England, a supplier, for pro-
visions which were rejected by the Navy.

     According to the information submitted, the U.S.S. Batfish zt 93
(SSN-681) was scheduled to be in Faslane, Scotland on October 14,
1976, for a 3-day visit. Prior to entering port, the Batfish-  s-Te e'E
a radio message to the U.S.S. Holland (AS-3-2-, e supporting submarine
tender, requesting that the tender provide bread, milk, and ice cream
upon the arrival of the Batfish. At the time the message was trans-
mitted, the Batfish did not know where it would be moored, but
assumed that it would be at Faslane. Events on October 14, 1976,
were complicated by a last minute change in the ship's berth assign-
ment from Faslane to Holy Loch. The Supply Officer of the Batfish
states that the requisition for the provisions should have been
cancelled, but was not.

     The supplier, NAAFI, informed the Navy that the procedure
normally followed when a ship is deployed (by which NAAFI apparently
means when the ship's location is changed) is the immediate cancel-
lation of all deliveries. This is possible, according to NAAFI, as
notification of any deployment is normally received in advance of
the requested delivery time. In this case, notification was received


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