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B-187806 1 (1979-01-11)

handle is hein.gao/gaobadguo0001 and id is 1 raw text is: DECISION FILEB-1-7806 THE COMPTROLLE GENERAL . OF THE UNITED STATES V ASH ING TO N , 0 C . 205.4 8 aV3 Y DATE: January 11, 1979 MATTER OFUniversal Aircraft Parts, Inc. t DIGEST: 1. Subcontractor who supplied, but was not paid by, prime contractor (currently the subject of bankruptcy proceedings) with parts and materials for use in performing Government contracts may not recover purchase price of supplies from United States where subcontrac- tor did not establish privity with Government under recognized theories of agency, implica- tion, or third-party beneficiary. 2. Reporting claim to Congress under Meritorious Claims Act for relief of Government subcontrac- tor requesting reimbursement for materials supplied to,. but not paid for by, Government prime contractor (currently the subject of bankruptcy proceedings) for use in performing contracts would not be justified because claim contains no elements of unusual legal liability or equity, and to do so would constitute pref- erential treatment over prime's other unqecured creditors who must satisfy their claims (ip pending bankruptcy proceeding and over qther unpaid subcontractors in similar circumstances. A vniversal Aircraft Parts, Inc. (Universal), recuests reimbursement from the United States in the amount of $190,753.68 for engine parts and aircraft frames (including attorneys' fees) supplied to Gary __bk, Aircraft Corporation (Gary) for use in performing several United States Air Force contracts (Nos. F41608-71-D-0666, January 1, 1971; F41608-71-D-0289, December 1, 1971; F41608-72-D-1273, April 28, 1972; F41608-73-D-3000, July 27, 1973; F41608-74-D-1054, March 29, 1974; F41603-74-D-1064, April 30, 1974; and F-41608-74-D-1645, September 1, 1974). The claim arises from Gary's fail- ure to pay Universal for approximately $160,000 worth of materials. Universal obtained a judgment against Gary on August 27, 1976, for the claimed amount, but has been

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