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B-201328 1 (1981-10-28)

handle is hein.gao/gaobadjvp0001 and id is 1 raw text is: C THE CO PTROLLER GENERAL DECISION OF THE UNITED STATES .WASHINGTON, 0.C. 2054B FILE: B-201328 DATE: October 28, 1981 MATTER OF: Request for Advance Decision from Army Finance and Accounting Officer-- Reconsideration DIGEST: 1. Government is entitled to prompt-payment discount where failure to pay contractor ,within discount period is due to contrac- tor's failure to pay workers proper wage rate in violation of Service Contract Act (SCA). However, Government is not entitled to discount on amount withheld which is in excess of amount owed workers or where court holds that SCA is not applicable to contract. 2. Payment of interest is not required to be made on amounts withheld by contracting agencies, at direction of Department of Labor, in excess of amount needed to reim- burse workers underpaid by contractor in violation of Service Contract Act, since neither laws of United States nor contract provides for payment of interest. The Finance and Accounting Officer, United States Army Troop Support and Aviation Materiel Readiness Com- mand, St. Louis, Missouri, requests reconsideration of our decision B-201328, January 26, 1981, in which we declined to consider a request for an advance deci- sion made in connection with a claim submitted by Harold and Elsie Williams, d/b/a Williams Moving Com- pany (hereafter Williams) for refund of allegedly unearned prompt-payment discounts, plus interest, taken by the Government. On January 3, 1977, the above Command awarded Williams requirement contract No. DAAJ04-77-D-0101 which contained 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

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