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B-211160 1 (1983-12-30)

handle is hein.gao/gaobadlml0001 and id is 1 raw text is: L THE COMPTROLLER GENERAL DECISION OP THE UNITED STATEIN 4WAS H I NTON. 0.0C. 20548 FILE: B-211160 DATE: December 30, 1983 MATTER OF: Koch Fuels Inc. DIGEST: A supplier to section 8(a) business concern claims that the Small Business Administration (SBA) failed to properly perform a duty, created by enforceable promises, to monitor and manage a special bank account which contained advance payments extended by SBA to the 8(a) concern. As a result, the claimant has been unable to collect the $488,000 it is owed by the 8(a) firm for supplies used to perform an 8(a) subcontract. The claim is denied because the statements by the SBA which allegedly constitute enforceable promises were made in connection with advance payments made on three previous occasions, not to the particular advance payment to which the supplier now claims a right. Koch Fuels, Inc. has submitted a claim against the Small Business Administration (SBA) for $488,000, an amount owed Koch by Tri-Par Combustion Corp., a participant in the SBA's section 8(a) program. Koch contends that the SBA failed to meet its obligation to monitor and control a special bank account established to administer funds advanced to Tri-Par by the SBA. As a result of this alleged failure, Tri-Par was unable to pay Koch for fuel oil delivered for Tri-Par's account during August and September 1981. Koch argues that SBA should be required to pay Koch the $487,500 owed by Tri-Par, plus interest. We conclude that Koch has no valid claim against the government with respect to this matter.

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