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B-201328 1 (1981-01-26)

handle is hein.gao/gaobadiuu0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISIONl ~OF THE UNITED STATES /A SH IN GTON .C. 2054 6 tN I T V0 FILE: DATE: January 26, 1981 B-201328 MATTER OF: Request for Advance Decision from Army Finance and DIGEST: Accounting Officer Lpropriety of Army and Air Force withholdings of funds, pursuant to request by Departme of Labor, owed contractor to cover underpayment of workers in violation of Service Con- tract Act, 41 U.S.C. § 351, et seq. (1976), will not be considered since question of applicability of act and propriety of withholdings could be determined by court of competent jurisdiction in suit brought by con- tractor in United States District Court. The Finance and Accounting Officer, United States Army Troop Support and Aviation Materiel Readiness Com- mand, St. Louis, Missouri, requests an advance decision ' s in connection with a claim submitted, through counsel, by Harold and Elsie Williams, d/b/a Williams Moving Company (hereafter Williams), for refund of allegedly7 unearned prompt-payment discounts, plus interest, taken by the Government. On January 3, 1977, the Army awarded Williams requirement contract No. DAAJO4-77-D-0101 which con- tained a 50-percent, 20-day, prompt-payment discount provision. By letter of March 2, 1977, to the Base Procurement Officer, the United States Department of Labor (DOL) requested that future payments under the above contract be withheld until $39,057.22 had accumulated. A labor standard compliance investi- gation by DOL disclosed that Williams had, in violation of the Service Contract Act, 41 U.S.C. § 351, et seq. (1976), underpaid its workers on contract No. F11623- 76-90062 with Scott Air Force Base, Illinois, and contract No. F03601-76-90004 with Blytheville Air Force Base, Arkansas, in the total amount of, $39,057.22, for the period January -1, 1975, to August 27, 1976.

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