[Claim for Attorney Fees]

An attorney filed a claim against the Small Business Administration (SBA) for fees earned in preparing a contractor's termination settlement agreement with SBA. The attorney stated that the contractor went out of business before paying the full amount owed him; since the termination settlement included a sum for legal fees, the attorney felt that he should be paid by SBA from that sum. GAO stated that, although SBA accepts such costs as an allowable settlement expense, SBA has no legal obligation to ensure that the money paid to the contractor is disbursed in any particular way. GAO held that statutory law renders all assignments of third party claims upon the Government unenforceable and that the exceptions provided in the law do not include fees due attorneys. Accordingly, the claim was denied.