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DOCUMFNT hESOE
032r4 - A2732961
(Prio:ity of Payment among Competing Claimants for Funds
w(thheld under a Construction Contract]. 3-188473. August 3,
S1774 5 pp.
Decision re: Bonneville Power Administration; by Robert F.
Keller, Deputy Comptroller General.
Issue Area: Federal Procurement of Goods and Services (1900).
Contact: Office of the General Counsel: Procirement Law I.
Budget Function: General Government: other General Government
(806).
organization concerned: Crow Ronk Pro5acts, In:.; Forest
Service; Sverdsten Logging Co-, Inc,
Auth'rity: Assignment of claims Act of 1940,,as amended (31
U.S.C 203; 41 U.S.C. 15). (47 Stat. 1516; 31 U.S.C. 227).
Riller Act. 18 Stat. 481. 55 Cop. Gen. 155. 37 Coup. -Gen.
318. 20 Coup. Gen. 458. 0-187456 (1976). B-187178 (1976).
B-184506 (1975). 3-161203 r1976). 8-178168 (1973). Project
Map, Inc. v. United States, 486 P.28 1375 (Ct. C1. !973).
United States T. ur:sey Trust Company, 332 ULSL 234 (:947)
Taqqart v. United States, 17 Ct. Cl. 322, 327 (1881).
An Authorized Certifying officer of the Bonneville
Power Administration requested advice concerning the priority of
payment among competing claimants for funds withhel under a
construction contract. 1he setoff of fire sujprasion costs for
a forest fire wHich occurred during the performance of the
contract is appropriate even though the amount ani liability are
disputed. The Forest Service claim for the setcff of funds
withheld under the contract has priority over the claim of
payment bond surety, which is merely a subrogee of thq
contractor and creditor of the Government. (Author/SC)
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