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B-230095 1 (1988-03-16)

handle is hein.gao/gaobadnao0001 and id is 1 raw text is: The Comptroller General of the United States Washington, D.C. 20548 Decision Matterof- Defense Logistics Agency--Request for Advance Decision File: B-230095 Date: March 16, 1988 DIGEST 1. General Accounting Office will not consider merits of collusive bidding allegations. If the contracting officer suspects collusive bidding, he should refer the matter to the Attorney General. 2. Statute requiring contracting agency not to settle, compromise pay or otherwise adjust any claim involving fraud, prevents an agency from acting on contractor's claim until allegations of bid collusion are resolved by the Attorney General. DECISION The Defense Logistics Agency (DLA) requests an advance decision on the propriety of paying a claim for $95,000 by Coastal Industries, Inc. The claim represents the final payment pending under contract No. DLA100-86-C-0544 for Coastal's performance under that contract. DLA is with- holding payment because it is concerned about the possi- bility that Coastal engaged in bid collusion in order to secure the contract. We conclude that DLA may not pay Coastal's claim unless and until the issue of bid collusion has been resolved in Coastal's favor by the proper tribunal, or otherwise settled by the Attorney General. BACKGROUND On July 24, 1987, Coastal completed its performance under the contract and submitted a voucher to the contracting officer for the final installment payment of $95,000.00. The contracting officer returned Coastal's voucher on September 14, pending the resolution of the legal status of

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