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B-190181 1 (1977-12-08)

handle is hein.gao/gaobadfky0001 and id is 1 raw text is: i&. DECISION FILE: 3-190181 MATTER OF: I I I iL~ DIGEST: Where funds withheld from bankrupt contractor, who completed contract but failed to pay materialmen and subcontractors, are claimed by (1) contractor, (2) insolvent surety who made no payments to waterialmen and subcontractors, (3) SBA who agreed to guarantee payment of 90 percent of lisses suffered by surety as result of contractor's failure to pay materialmen and subcontractors, and (4) unpaid materialmen and sub- contractor, GAO wil l not authorize payment to any of claimants. If GAO .ere to authorize pazmant to any of claimants, other claimanta could bring ut against Government, and since GAO decision is no: res judicata, Government might have to make duplicate payment. Parties therefore left to remedies in courLs. By letter dated Septembe'r 14, 1977, an authorized certifying officer for the Department 'ai the Interior requested a decision by our Office rairding tha disposition of $53,254.72 withheld under a contract between K.B.J. Engineering, Inc. (KBJ), and the Bureau of Reclamation. The above contract was foir the purpose of constructing inlec and outlet works along the Colorado River and was in the amo'nt of $233,707.90. Pursuant to the requirements of the Willer Act, 40 U.S.C. § 270(a) (1970), pe.ormaice and payment bonds were obtained from Summit Insurance Company of New York (he.reafter the surety). The payment bond was in'the amount of approximately $117,000. Regarding these bonds, the Sma. Bu'diness Aministration, (SIA) pursuant to 15 U.S.C. 5i 694a and b (1970), entered into a guarantee agreement with the suraty whereby the S!3A guaranteed the paymint of 90 peit nt of any loss that the surety night incur as the result of any breach by KBJ of the terms of the bonds. While KBJ did complete performance of the contract, it failed to discharge its obligations to several suppliers and subccntractors. Under ordinary circumstances, the I phd//P5 . . THE COMPTROLLER SENFEMAL O.F THE UNITeD BTATE s A .9HBINJGTON. D.C. 2054El DATE: Dccember 8, 1977 K.B.J. Engineering, Inc. I

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