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B-211539 1 (1983-09-26)

handle is hein.gao/gaobadlid0001 and id is 1 raw text is: OE I.NTHE COMPTROLLER GENERAL IDECISION • O.F THE UNITED STATES WSHINGTON. 0. C. 20548 FILE: B-211539 DATE: September 26, 1983 MATTER OF: Forest Service Request for Advance Decision DIGEST: 1. Payment of a contract balance that is claimed by a payment bond surety, the Department of Labor (DOL) for unpaid wages, and a trustee in bankruptcy may be made in the full amount of the DOL claim with the remaining balance payable to the surety. 2. Payment of a contract balance that is claimed by a payment bond surety, the Forest Service for excess reprocurement costs, the IRS pursuant to a tax levy, and a trustee in bankruptcy may be made in the full amount of the excess repro- curement costs with the remaining balance payable to the IRS. By letter dated April 13, 1983, the Director of Administrative Services, Forest Service, Department of Agriculture, requested a decision of our Office in regard to the disbursement of funds withheld under two contracts between Winters Construction (Winters) and the Forest Service. Winters was terminated for default under Forest Service contracts Nos. 50-0398-1-7 (Bear Creek) and 50-0356-1-17 (Washington Creek) on August 11, 1982. Thereafter, the Forest Service withheld payments totaling $23,079.42 and $6,344.22 under the Bear Creek and Washington Creek contracts, respectively. During the pendency of this request, we were informed by the attorney for the Bank of Columbia Falls, Columbia Falls, Montana, that the bank has settled its claim of $27,000 against Winters arising out of assignment to the bank under these contracts

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