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B-216754 1 (1984-12-10)

handle is hein.gao/gaobadmbj0001 and id is 1 raw text is: ( THU COMPTOOLLUR UENSPIAL OOISlION . oP THE UNITED STATES WA JINGTON. D.C. 20548 FILE: B-216754 DATE: December 10, 1984 MATTER OF: EMC Industries, Inc. DIGEST: Where a contractual provision specifies that payment is considered to be made for purpose of earning a prompt payment discount on the date of the mailing of the government check, the general rule, that payment must be received by a vendor on or before the delin- quency date, does not apply. EMC Industries, Inc. has appealed a settlement by the General Accounting Office Claims Group (Settlement Certi- ficate on Claim No. Z-2844305 dated May 17, 1984) which disallowed an EMC claim for $23,910.60 in prompt payment discounts taken by the Defense Contract Administration Services Region, Philadelphia (DCASR), Defense Logistics Agency, under contract No. DAAK01-76-C-5661, issued by the U.S. Army Troop Support Command, St. Louis, Missouri. The contract provided for a 1-percent discount for payments made within 20 days. The contract also speci- fied that payment is deemed to be made for the purpose of earning the discount on the date of mailing of the govern- ment check. On December 19, 1980, EMC submitted an invoice to DCASR for $35,715.43, alleging that the DCASR had taken discounts under the contract for payments received by EMC after the 20-day discount period. DCASR initially refunded $9,927.79 and subsequently, after the exact check issue dates were researched, refunded an add-itional $1,877.04 of the discounts claimed by EMC. EMC submitted the balance of the claim to the GAO Claims Group in June 1982. In support of the claim, EMC submitted a schedule which showed that EMC calculated the 20-day period as of the date on which the government's checks were received by EMC rather than the date on which the checks were mailed. The Claims Group disallowed the

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