About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

B-212221 1 (1983-08-24)

handle is hein.gao/gaobadlgy0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISION OF THE UNITED STATES WASHINGTON,.0. 0. 20548 .FILE: B-212221 DATE: August 24, 1983 MATTER OF: General Services Administration--Request for Advance Decision DIGEST: 1. Subcontractors and suppliers, claiming amounts due for labor ond materials furnished- to defaulted prime contractor-, may not bring .a claim-directly against the Government when, under-any common law theory; .they lack privity of contract with the Government. 2. Under-the Contract Disputes Act of 1978, con- tracting officer does not have authority to settle claims of subcontractors who were not parties to prime contract, even when such firms agree to accept pro rata settlement from remaining contract-uRT97s Rather, such funds should not be paid until a trustee in bankruptcy and/or court of competent juris- diction settles accounts among all potential claimants.and prfme contractor. The General Services Admihistra.tjon (GSA) requests an advance decision regarding the auithority of-a contracting officer to settle claims of two subcontractors from con- tract funds remaining after termination for default of a prime contract. We conclude that the subcontractors. have no legal basis for recovery f-rom the.Government, and the contracting officer has no authority to settle at this- time. On August 24, 1981, 'GSA awarded a $24,975 contract for*- handicap alterations to the Federal Building and U.S. Post Office, Tupelb, Mis~issippi to C.G. Construction Company. A $500 change order 'bro.ught the total. contract price to $25,475. -Since the amount.of the original award had been less than $25,000, GSA did not require payment and perform- ance bonds. The agency paid C.G. Construction a total of $9,171 in progress payments before .the firm abandoned the project and apparently went out of business. Consequently, the contracting officer termi-nated the contract for default on April 5, 1982. 1AIt . -

What Is HeinOnline?

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.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most