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B-203291 1 (1981-06-15)

handle is hein.gao/gaobadjln0001 and id is 1 raw text is: / THE COMPTROLLER GENERAL DECISION t.. OF THE UNITE'D STATES WASHINGTON, 0. C. 20548 FILE: B-203291 DATE: June 15, 1981 MATTER OF: H.A. Sack Co., Inc. OIGEST: Where contractor and its surety under payment bond refuse to reimburse sub- contractor for labor and materials furnished in connection with perform- ance of contract, subcontractor's only remedy is suit in Federal District Court under Miller Act, 40 U.S.C. § 270 (1976). GAO's responsibility is limited to furnishing copies of Miller Act contracts and payment bonds. Counsel for H.A. Sack Co., Inc. (Sack), has requested this Office's assistance in regard to the refusal by Fortec Contractors (Fortec), the prime contractor under Department of the Army (Army) con- tract No. DACA21-78-C-0046, to pay his client for work performed as a subcontractor on the contract. Counsel states the he was notified by the Army that funds withheld by the Government would be released to Fortec, but that neither Fortec nor Insurance Com- pany of North America (INA), Fortec's surety under the contract, intended to pay Sack. Counsel requests that the Comptroller General investigate INA's involve- ment and determine if there is any legitimate reason for its refusal to pay his client. Counsel also requests that should we determine that INA has not carried out its Miller Act obligation, 40 U.S.C. §'270 (1976), the firm be removed from the list of approved sureties. The Miller Act payment: bond is the only protection provided by the Government for subcontrac- tors. In the event any subcontractor furnishing labor 641 subcontracto 7ao

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