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B-192145 1 (1978-07-07)

handle is hein.gao/gaobadgfc0001 and id is 1 raw text is: *THE COMVPTROLI.ER GENERAL DC3 ISION i . . P UNIVED STA-es WASHINGTON. D.C. 20540 FILE: B-192145 DATC: Jly 79 1978 MATTER OF: Executive-Suite Services, Inc. DIGEST: Where fault for Government's failure to take pr'ompt-payment discount within discount period lies solely witC Govern- ment, taking cf discount after expiration of discount period is unauthorized. The Accounting and Finance Ofiiver, TraviLl Air Force Base, California, has requested an advance decision as to a claim under Air Force contract No. F04626-77-90085, for janitorial services in certain buildings on that base. Executive-Suite Services, Inc.(ESS), has requested reimbursement of a prompt-payment discount in the amount of $513.22, taken by the Air Force in payment of an invoice sub- mitted by ESS. The record shows that the subject invoice was received by the Air Force on February 27, 1978. A 20- day/20-percent discount was provided for by section 12 of the contract. On March 15, 1978, a check in the amount of $2,566.10 was mailed to ESS. The following day, in a post-payment audit, the Air Force discovered that it had not taken the 20-percent discount to which it was entitled at that time. The same day, the Air Force arranged by telephone to have ESS return the check, so that the Air Force could replace it with one for an amount reflecting the discount. On April 3, 1978, 11 days after the Air Force received the returned check, it sent the claimant another check for $2,052.88, i.e., $2,566.10 minus the 20-percent discount. The second check was mailed, however, well after the 20-day discount period had expired. Subsequently, ESS notified the Air Force on April 7, 1978, that it was entitled to a refund of the discount taken. The Air Force believes that the Government may have earned the 20-percent discount, inasmuch as the telephone conversation of March 16, 1978, constituted

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