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B-217595 1 (1986-04-02)

handle is hein.gao/gaobadmgi0001 and id is 1 raw text is: 





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FILE: B-217595


MATTER


DIQEST:


THE COMPTROLLER GENERAL
OP THE UNITEO STATES
WASHINGTON. D.C. 9054S



      DATE: April 2, 1986


OF: Refunds of Interest Erroneously Charged by
     Forest Service

 Forest Service interpreted provision in timber
 sale contract as requiring full month's interest
 on payments late by only a portion of a month.
 Based on challenge by one contractor, Agriculture
 Board of Contract Appeals held that Forest Ser-
 vice improperly construed contract and that
 interest should have been charged only for actual
 number of days payments were late. For all other
 timber sale contracts governed by the Board's
 decision, Forest Service may refund the over-
 charges without requiring formal submission of
 claims. Since interest collections had been
 deposited in Treasury as miscellaneous receipts,
 refunds may be charged to permanent appropriation
 established by 31 U.S.C. S 1322(b)(2). Contrac-
 tors who file claims under Contract Disputes Act
 are entitled to interest on refunds from date of
 filing, payable from current Forest Service ap-
 propriations for administration of timber sale
 contracts.


     The Secretary of Agriculture requests our opinion on
how the Forest Service should implement a decision of the
Agriculture Board of Contract Appeals (Board) holding that
the Forest Service had been overcharging contractors for
interest due on late payments under its standard timber sale
contract. The basic question is the proper source of funds
for refunds flowing from the Board's decision.

                         BACKGROUND

     The Forest Service, Department of Agriculture, enters
into timber sale contracts which authorize contractors to go
upon Government land and cut timber. The contractor is
required to pay the Forest Service for the timber by the
date specified in the standard contract used for all timber
sales. If the contractor fails to pay on time, it must pay
interest.

     For timber sale contracts written between June 1981 and
November 1983, the Department of Agriculture interpreted the


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