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B-226540 1 (1987-08-21)

handle is hein.gao/gaobadmup0001 and id is 1 raw text is: The Comptroler General __ of the United States Washington, D.C. 20548 Decision United States Army Responsibility Under Joint Matter of- Payment Agreement File: B-226540 Date: August 21, 1987 DIGEST Where the Army Corps of Engineers breached a joint payment agreement by issuing a check only to one party, the proper measure of damages is the amount the aggrieved party would have received had the check been issued jointly. DECISION The Department of the Army, under the authority of section 3529 of title 31 of the United States Code, has asked us to determine whether it is obligated to make a separate payment to Southwest Construction Supply and Sales, Inc. for furnishing materials to Security Fence Company, a government contractor, under a joint payment agreement between all the parties. For the reasons given below, we find that the Army should pay Southwest Construction an amount equal to what it would have been paid had the joint payment agreement been implemented properly. BACKGROUND In August 1984, the United States Army entered into a contract with Security Fence for $8,000 (Contract No. DACW 56-84-M-1031). As the contract price was under $25,000 the contractor was not required to furnish a payment bond under the Miller Act, 40 U.S.C. S 270a, and did not do so. The contract was modified in April 1985 and the contract amount was increased to $23,318. Under the contract Security Fence agreed to furnish materials, labor and equipment to con- struct fences at the Robert S. Kerr Area Office of the Tulsa District Corps of Engineers. Security Fence engaged Southwest Construction to provide materials for the project. As work on the contract progressed, two checks were issued to Security Fence.

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