HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.
![handle is hein.gao/gaobadhku0001 and id is 1 raw text is:
DECISION
FILE:
B-192
MATTER OF:
V- AE
THE COMPTROLLER GENERAL
~ . OF THE UNITED STATES
WASHINGTON. 0. C. 20549
/0 0/1
V7/
132 DATE: July 23, 1979
Dine, I c. --]Lability for Debts 1;;?4a 0Y4or
DIGEST: Bureau of Indian Affairs is not responsible for
debts to private creditors incurred by its con-
tractor, Dine, Inc., where there was no express
commitment by the Bureau to guarantee payment
of Dine's debts.
The former Commissioner of Indian Affairs has requested our
opinion on whether the Bureau of Indian Affairs is liable for
various debts incurred by Dine, Inc., a general contractor of the
Bureau.
The Bureau entered into cost reimbursable contracts with Dine
for fiscal years 1972 and 1973 by which Dine agreed to conduct the
educational program for Navajo children at Rough Rock Demon-
stration School in Chinle, Arizona. Dine had operated the school
on a grant award contract for the three previous fiscal years.
While operating the school, Dine incurred obligations in excess of
the amounts of its contract, and became heavily indebted to sever al
governmental and nongovernmental creditors. The Bureau did not
renew the contract with Dine when it expired at the end of fiscal
year 1973, instead contracting with a new corporation to operate
the school. Dine is currently insolvent and the Bureau is con-
cerned about possible liability for the corporation's debts.
The record before us contains a copy of the fiscal year 1973 con-
tract between the Bureau and Dine, (Contract No. NOO C 1420 5718,
dated August 15, 1972. ) Although the fiscal year 1972 contract is
not in the record, we assume that its terms are similar to those
of the 1973 contract.
The 1973 contract between the Bureau and Dine was a cost re-
imbursement type contract. Section 316 provided that the Bureau
would pay Dine an amount not to exceed $925, 257. 00 of which
$136, 375. 00 was to be in the form of goods and services.
Subsection (c) of section 316 stated that for the purposes of
reimbursement, Dine would submit monthly invoices showing the
cost it incurred in carrying out the contract, along with receipts
for payment. The expenditures were to be coded to identify them
with items in the budget for the operation of the school, which was
made a part of the contract.
. . - L](ViewImageLocal?handle=hein.gao/gaobadhku0001&div=1&collection=&method=preview&ext=.png&size=3)