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B-194931 1 (1980-04-10)

handle is hein.gao/gaobadiec0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISION OF THE UNITED STATES WASHINGTON, D.C. 20548 FILE: B-194931. DATE: April 10, 1980 MATTER OF: Department of the Interior - request for advance decision . DIGEST: Miller Act surety which had opportunity to protect own interests regarding ex- penditures allegedly incurred after responding to Government claims of defective workmanship has not estab- lished entitlement to contract retain- age held by Government. The Department of the Interior (Interior) has .requested an advance decision as to whether contract retainages under a construction contract No. CX-9000- 3-0087, awarded by the National Park Service, Pacific-0O4V S9/ Northwest Region, should be paid to the contrac r's surety or to the Internal Revenue Service (IRS),in satisfaction of a tax levy against the contractor. The surety, National Surety Cor oration, claims pri- ority over IRS under-i-t-pTrformance ond. YZr% The contractor, Irvin and Compan (Irvin) entered into this contract for- thThiconstruction of certain facilities at McKinley National Park on March 7, 1973. During the course of-the construction a dispute arose regarding the scope of the work required under the contract. Irvin eventually completed the construction to the satisfaction of the Government, after allegedly incurring additional expenses in an amount in excess of $150,000 as the result of performing the disputed work. Some of this expense resulted from changes directed during the course of initial construction, and the remainder was incurred in the fall of 1973 when the contractor was required to rectify certain construction deficiencies. In this regard, the surety alleges that it was contacted and requested to respond to claims of de- fective workmanship in the fall of 1973, and that it expended funds in completing work which was later

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