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DCCoKENT 51SURE
01926 - (A1052027)
(Proper Disposition cf Homey Withheld by Federal Agency from
Company Which Is Now in Bankruptcy]. B-187997. April 11, 1977. 7
pp.
Decision re: Cascade Reforestatiom, Inc.; by achert P. Keller,
Deputy Comptroller General.
Issue krea: Federal Irocurement of Goods and Services:
Reasonableness ct Prices Under Ieqotiated Contracts and
Subcontracts (1904).
Contact: Office of the General Counsel: Procurement Law I,
Budget function: General Govecnstatt Other General Government
(806).
Organizaticn Concerned: National Aeronautics &ad Space
Administration; internal Revenue Service; Department of
Labor; Peerless Insurance Co.; Bank of Willamette Valley,
Dallas, OR.
Authority: Assignment of Claims Act (31 U.S.C. 203; 41 U.S.C.
15). Bankruptcy Act, sec. 60(a) (11 0.S.C. 96(a)). Contract
Work Hours and Safety Standards Act (40 0.S.C. 327 et seq.).
Service Contract Act (41 U.S.C. 351 et. seg.). '4 U.S.C.
6321. 37 Comp. Gea 318. 8-170748 (1971). 1-178198 (1973).
D-185962 (1976). 3-161460 (1967). 1-170454 (1970).
The Directcr of Administrative Services of the Forest
service reeuested a decision concerning the proper disposition
of $14,706 withheld from Cascade setorestatioa, Inc. The money
was withheld pending the investigation of wage underpayments.
GAO was asked to detersiae the priority of claims to the money
frie various claimants and whether the company was liable for
toe debts incurred by its director. All wage c2aims should be
settled first, with any monies remaining being remitted to
bankruptcy trustee. Rhe company was not liable for the
director's debts. (SS)
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