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B-178981 1 (1973-09-25)

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CO14PTROLLIER GENERAL OF THE UtlITED STATES
          WA-SHINGTON, D.C. 2041


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0-179291


september 24, 1973


Mrs g. . Bordlay
Chief, Accounting and Finance Dy.vialon
Office of the Coiptroller
Defeno Supply Agency

Dear 1k. Bordloy:

     In letter of July 24, 1973 (DS0-C1F'), you requested an advanco
decision as to whether the amount of,098,92015 deternined to be the
extent of Walsh-Ilealey At4, 41 US.C9 35,ot e,,, oa e underpayocrnts
under ftvo proviously settled coutracvs vith the Airport Hacinina
Corporation, J.artin, Teruleace, mny be recovered by set-off aqinst
current contracts with the contractor containing l1alsh-lealey proviniozw
In view of the no sot-off proviuion o the Asaignoiit of Claims Act,
41 U.S.C, V5 and 31 U.S.C. 203, in the current contracts,

     Ordinarily, the waount due the Uuited tntee for a Walnh-UTealey
violation wider one contract ay be withheld from the amount duo the
contractor under anothnr Waloh-lleoloy contract, 41 U.S.C. 30 5nd
Reoody-lir- Cnrete99iC0n  U v, United ttea, 130 V. $upp. 1qQ (1955).
lhowever, gwheore the contract ainot-whicIh-this withholdinq iu proposed to
be made has boon assigned and contains a no sat-off proviw.on the
result is different,


The no et-off provicion of the Aeafltammt of Claims Act

          Any contract of the Departmcn: of Defenne * f *
     nay, in tio of war or nationa.atl ce.goncy proclaimed
     by the Presidont * * A provide * * t that paymcnts
     to be node to the aesignea of any nwneye due or to
     becrnu due mder such contract ahnli not: be subject
     to reduction or set-off, and if such provicdon or
     one to the sene Coneal effect has boena t any tima
     herotoforo or to horoafter included or imisorted in
     any such contract, paymants to be revJi thereafteor
     to an ausignee of any monoye due or to baorma due
     under ouch contract, whthar durin2 or ofker ouch
     war or .oroncy. shall not be subject to reductioa
     or set-off for any liability of any natur of thu
     asoignur to the United States or iny departneut or
     ajency thereof which arises indepiidently of such
     contraot * * *,


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