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B-185427 1 (1976-04-02)

handle is hein.gao/gaobaddqj0001 and id is 1 raw text is: 0V LER C 0 -&~~7.THE COMPTROLLER GENERAL .EI O . OF THE UNITED STATES WASHINGTON, D.C. 20549 FILE: B-185427 DATE: April 2, 1976 MATTER OF: Soil Conservation Service--Request for decision concerning contract with Small Business Administration DIGEST: ci(G 1. GAO view is that acceptance of bid consummates contract, unless parties' intention is otherwise, and that subse- quent failure to furnish performance and payment bonds required for construction contracts by Miller Act does not render contract void. Moreover, FPR's provide that for contracts under section 8(a) of Small Business Act, bond requirements are not applied in 8(a) prime contract with SBA, but are applied in subcontract with small busi- ness concern. Therefore, where Soil Conservation Service awarded 8(a) construction contract to SBA, contract was in existence notwithstanding fact that subcontractor later failed to furnish bonds. 2. In deciding controversy between two Federal agencies, terms of agreement as reached by parties will be given effect by GAO, if they are authorized by and otherwise in accordance with applicable law. 3. Where contracting agency refers claim to GAO arising under contract disputes clause, contracting officer has not made final decision pursuant to clause, and unresolved factual questions are present, matter will be returned to agency for processing in accordance with disputes clause. There- fore, Soil Conservation Service contracting officer should render final disputes decision concerning claim against SBA (as section 8(a) prime contractor) for excess reprocurement costs arising from default of small business subcontractor. The Soil Conservation Service (SCS), United States Department of Agriculture, has requested our Office's decision on several ques- tions concerning its contract No. AGl8scs-00100 with the Small Busi- ness Administration (SBA). The contract was awarded to SBA on June 27, 1973, pursuant to section 8(a) of the Small Business Act, 15 U.S.C. § 637(a) (1970), for construction of a watershed fishway. On June 29, 1973, SBA - 1 -

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