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B-189819 1 (1977-12-27)

handle is hein.gao/gaobadfng0001 and id is 1 raw text is: TrHE CONIPTRO3LLEA GO11RF4AL DECISION * OF THE UNITED STATES VWASHINGTON. D.C. PODlS8 FILE: B-189819 DATE: Dricember 27, 1977 MATTER OF: Department of Interior, Nation.l Park Service- Request for Advance Decision DIGEST: GAO will not object to payment of one-half of contract price to each of two claimants each of whom purports to be the assignee of contractor's right to receive payment, where each claimant has agreed to accept payment in full satisfaction of all claims arising under contract. The Department of Incerior, National Park Service (NPS) has requested an advance decision as to which of two claiinants is entitled to receive payment under contract No. CX1340-6-13007 for two water storage tanks held by A-1 Industries, Inc. (A-1). Subsequent to that request the claimants, Commercial Credit Business 'Lcans, Inc. (Commercial) and Douglas Plastics, Eu. (Douglas), agreed that each would acccpt $7, 068. 60 as full satis- faction of their claims against NPS. By terms of the contract with A-1, NFS owes A-1 $14, 137. 20. Briefly, the record indi-ates that on May 2, 1977 NPS received a lr:tter from Commercial informing it that A-1 bad assigned the proceeds of ita contract to Commercit.. The actual instrunent of assigument was not presented uintil June 20. Subse- quently, on May 5, NPS was orally adv'scd by an official of -Douglas that it was A-I's surolier anc'that it would deliver the second tank if NPS would pay it directly. The contracting officer, who was not informed & Commerhial's earlier purported assignment3 informed Douglas that it would be paid directly if it could get an assignment from A-1. By 'otter dated May 17, A-1 purported to transfer sales and collection for payment rights to Douglas. The tank was installed by Douglas on June 24. Neither Commercial nor Douglas has been paid although each maintains that it possesses a right as assignee to all the proceeds due under the subjeti contract. -1- I A

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