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B-218813 1 (1986-04-09)

handle is hein.gao/gaobadmgs0001 and id is 1 raw text is: oTHE COMPTROLLER GENERAL OKOISION * l OP THE UNITED ETATES WASHINGTON. 0. C. 20548 U'NIT1 FILE: B-218813 DATE: April 9, 1986 MATTER OF: United States Coast Guard--Payment of Contract Retainages to Subcontractors DIGEST: The United States Coast Guard should make payments of contract retainage to subcontractors only pursuant to an order of a court of competent jurisdiction when the prime contractor refuses to indicate whether or not it has paid its subcon- tractors and the surety appears unable to fulfill its payment bond obligations. A contracting officer for the United States Coast Guard requests an advance decision on whether he may pay three sub- contractors who have not been paid by the prime contractor. The payment would be made out of a contract retainage of $12,272.77 which the prime contractor has not yet received since he repeatedly has refused to submit a final invoice and the required releases. As will be explained below, we con- clude that the Coast Guard should make payments only pursuant to an order of a court of competent jurisdiction. BACKGROUND In fiscal year 1979, the United States Coast Guard awarded contract number DOT-CG8-8121 to Roy Robert Colvin. Mr. Colvin completed all work under the contract, which called for reconstruction of certain Government quarters, on April 29, 1982. Mr. Colvin has never received a contract retainage of $12,272.77 since he has refused to submit a final invoice and the required releases to the Coast Guard. Indeed Mr. Colvin has ignored several written requests from the Coast Guard and has never returned telephone calls on this matter. Three of the subcontractors hired by Mr. Colvin, the prime contractor, have written to the contracting officer that they have never received payment from Mr. Colvin. To evidence Mr. Colvin's indebtedness to them, the subcontractors, Byron P. Starns, Baton Rouge Lumber Co, Inc., and City Build- ing Supply Inc., have submitted copies of invoices and claims amounting to over $16,000. The subcontractors also indicate that they have not been paid by the payment surety under the contract. They have not sued the surety because they believe the surety is insolvent and has insufficient assets to make a suit worthwhile. I - -11% L , '\

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