All the factors that Mr. Rosenberg cited were taken into consideration. In addition, we had plans and budgets that were based on a three-year contract with the supplier, and the payments were made over three years.
When we thought about establishing an account payable at the end of the fiscal year for the whole contract, plus an amount for the delays, I didn't realize that I could debit that amount from the appropriation under section 33 of the act, because the merchandise hadn't been delivered by March 31, as provided in the contract. There were too many doubts about the contract's validity with regard to the delivery of known services.
Another important aspect is that the contract was designed to transfer all the risk to the supplier. It's a risk-transfer contract. If the contractor can't provide the service, no balance is payable. That's based on these two factors. I didn't feel comfortable using section 33.