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B-226540.2 1 (1988-08-24)

handle is hein.gao/gaobadneq0001 and id is 1 raw text is: The Comptroller General of the United States Washington, D.C. 20548 Decision United States Army Responsibility Under Joint Payment Agreement--Reconsideration Matter of: B-226540.2 File: Date: August 24, 1988 DIGESTS 1. In response to a request for reconsideration, we find that the Army Corps of Engineers (Corps) has not submitted evidence sufficient to warrant reversing B-226540, Aug. 21, 1987, 66 Comp. Gen. 441, in which we held that the Corps was liable to a subcontractor for the Corps' breach of a joint payment agreement between the Corps, the contractor and subcontractor, where the Corps issued a check only to one party. 2. Proper measure of damages for breach of a joint payment agreement between the Army Corps of Engineers, the contractor and subcontractor is the amount the subcontractor would have received had the government check been issued jointly to the contractor and subcontractor as provided by the agreement. As that amount is not clear, at a minimum the Corps should pay the subcontractor the $5,000 mentioned in the joint payment agreement as the value of the materials to be supplied by the subcontractor to the project. Should the subcontractor be able to prove further damages, the Corps of Engineers should make additional payments attributable to the breach. DECISION The Department of the Army, Corps of Engineers (Corps), requests reconsideration of B-226540, Aug. 21, 1987, 66 Comp. Gen. 441, in which we found that the U.S. Army (Army) should pay Southwest Construction Supply and Sales, Inc., a subcontractor, an amount equal to what it would have been paid had a joint payment agreement between the Army, the contractor, Security Fence Company, and Southwest Construction been implemented properly. For the reasons given below, we affirm our decision. The Army breached the joint payment agreement and is liable to Southwest Construction. Although we agree that Southwest Construction has not sufficiently demonstrated what it is owed, at a minimum the Corps should pay Southwest Construc- tion the $5,000 mentioned in the joint payment agreement as the value of the materials to be supplied by Southwest o- 3 o / I c PQ/

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