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B-230871.4 1 (1996-06-19)

handle is hein.gao/gaobablnn0001 and id is 1 raw text is: GAO United States General Accounting Office Washington, D.C. 20548 Office of the General Counsel B-230871.4 June 19, 1996 Mr. Brad J. Hutchinson 18386 Carob Street Hesperia, California 92345 Dear Mr. Hutchinson: This responds to your request on behalf of Mark Steel Corporation, Fire Engineering Co., Inc., Insulated Building Products, Inc., J. W. Thompson Co., Peterson & Associates, Inc., and Data Air, Inc., that our Office consider referring their claims to the Congress under the Meritorious Claims Act, 31 U.S.C. § 3702(d). These firms were subcontractors of Continental Construction Corporation (CCC) under National Aeronautics and Space Administration (NASA) contract No. NAS2- 12863 for the construction of a 112,000 square foot aircraft testing facility at NASA's Dryden Flight Research Center in Edwards, California. The claimants are among a number of CCC's subcontractors who remained unpaid when NASA terminated the contract with CCC for default on March 2, 1989. Some weeks later, when CCC's performance and payment sureties also defaulted on their obligations, the subcontractors and NASA were left without recourse to recover their losses. A report issued on February 22, 1991, by NASA's Office of Inspector General (IG) recounted the many problems NASA experienced with the contract, highlighting in particular problems with the sureties. Citing the IG report and the Meritorious Claims Act you request that we recommend to the Congress that the firms be fully compensated. For the reasons set forth below, we cannot make such a recommendation. Facts At $16,184,800, CCC was the low bidder on the test facility construction contract. NASA conducted a preaward survey of CCC and found it to be responsible. The preaward survey uncovered the problems that later plagued the contract: CCC's inexperience and cash flow. However, in the judgment of the contracting officer, 201617

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