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COMPTROLLER GENERAL OF THE UNITED STATES
WASHINGTON. D.C. 205A8
September 8, 1980
B-199915
The Honorable S. I. Hayakawa
United States Senate
Dear Senator Hayakawa:
We refer to your letter of July 23, 1980, with
which you enclosed correspondence between your con-
stituent, Knorr Pool Systems, Inc. (Knorr), and the
Defense Logistics Agency (DLA), Defense Contract Ad-
ministration Services Region, Los Angeles, concerning
DJLA's late payment pursuant to contract No. N0O244-79-
C-1378 and Knorr's claim for $906.60 in service charges
based on the 6-month delay in payment.
The record indicates that Knorr was awarded the
contract on September 26, 1979. Knorr's invoice
(No. 000336) dated November 7, 1979, which Knorr
advises was mailed to DLA on the same date and to the
address specified on the Award/Contract form, dis-
closes that shipment and delivery were-accomplished
between October 31 and November 6. Furthermore, on
March 5, 1980, after not receiving payment, Knorr sent
additional copies of its invoice to DLA at a different
address which was specified by a DLA employee. On the
bottom of that invoice, Knorr advised DLA that it would
waive [its] normal 1;5 percent monthly service charge
for overdue invoices and grant a 0.25 percent discount
if [the invoice was] paid'within 10 days. On May 5,
1980, Knorr submitted an invoice (No. 000426) for
service charges in the amount of $906.60.
By letter dated May 8, 1980, DLA advised Knorr that
payment would be made sometime during the week of May 12.
With respect to Knorr's claim for service charges, DLA
stated:
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