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B-225175 1 (1987-02-04)

handle is hein.gao/gaobadmpc0001 and id is 1 raw text is: .The Comptroller General of the United States Washington, D.C. 20548 Decision Matterof. Defense Logistics Agency and Small Business Administration Contract No. DLA100-78-C-5201 File: B-225175 Date: February 4, 1987 DIGEST There is no basis to find the Small Business Administration (SBA) liable to a procuring agency for re'rocurement costs for defective goods delivered by a defaulted small business subcontractor under a contract awarded to SBA pursuant to section 8(a) of the Small Business Act. SBA's responsibility as a prime contractor under the 8(a) program is only as a conduit in the award process between the procurina aqency whose needs are in issue and the small business subcontractor that will meet those needs; SBA does not guarantee satisfac- tory performance by the subcontractor. DECISION This decision concerns a claim by the Defense Logistics Agency (DLA) against the Small Business Administration (SBA) for reprocurement costs for defective goods delivered to DLA by a small business subcontractor under contract No. DLA100- 78-C-5201. DLA asserts that SBA is liable for these costs because SBA specifically agreed to a Warranty Clause (L67) in its con- tract with DLA, and this clause, which is a special clause, and not a general provision of the contract, provides rights which are in addition to . . . any rights afforded to the government by any other clause in the contract. Therefore, while the contract provides that the general provisions of the contract are not operative between SBA and DLA, but are applicable to SBA's subcontractor, DLA contends that the warranty clause, a special provision, is not superseded by this language. SBA contends that the warranty clause is a general provision which is applicable only to the subcontractor and not to SBA. We agree with SBA.

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