B-141143, AUG. 30, 1961
Highlights
BUREAU OF INDIAN AFFAIRS: REFERENCE IS MADE TO PREVIOUS CORRESPONDENCE RELATING TO A CLAIM ASSERTED BY THE MARYLAND CASUALTY COMPANY. THERE WAS THEN SET FORTH A COMPUTATION SHOWING THAT OUT OF THE BALANCE OF THE CONTRACT FUND THERE WAS CONSIDERED FOR RETURN TO THE SURETY THE SUM OF $8. IN ARRIVING AT THAT AMOUNT THERE WAS DEDUCTED THE SUM OF $2. THERE IS ENCLOSED FOR YOUR INFORMATION A COPY OF A LETTER DATED NOVEMBER 29. THE MATTER WAS CONSIDERED IN OUR DECISION DATED DECEMBER 8. WE HAVE RECEIVED FROM THE MARYLAND CASUALTY COMPANY A FURTHER LETTER DATED JULY 20. THE SAME IS ENCLOSED. 770.66 IS PAYABLE TO THE SURETY UNDER OUR HOLDING IN PARAGRAPH TWO ON PAGE TWO OF THE DECISION OF DECEMBER 8.
B-141143, AUG. 30, 1961
TO CONTRACTING OFFICER, GALLUP AREA OFFICE, BUREAU OF INDIAN AFFAIRS:
REFERENCE IS MADE TO PREVIOUS CORRESPONDENCE RELATING TO A CLAIM ASSERTED BY THE MARYLAND CASUALTY COMPANY, AS COMPLETING SURETY, FOR THE BALANCE REPORTED AS PAYABLE UNDER CONTRACT NO. 14-20--600-4215, DATED APRIL 9, 1958, BETWEEN THE BUREAU OF INDIAN AFFAIRS, DEPARTMENT OF THE INTERIOR, AND HUGH AND PHILIP RICHEY, D/B/A RICHEY CONSTRUCTION COMPANY, ST. JOHNS, ARIZONA.
IN YOUR LETTER OF NOVEMBER 4, 1960, YOU SHOWED THE SURETY'S LOSS UNDER THE PERFORMANCE BOND AS $14,501.40, AND THERE WAS THEN SET FORTH A COMPUTATION SHOWING THAT OUT OF THE BALANCE OF THE CONTRACT FUND THERE WAS CONSIDERED FOR RETURN TO THE SURETY THE SUM OF $8,123.91 UPON THE RECEIPT OF A NEW AFFIDAVIT FROM THE SURETY. IN ARRIVING AT THAT AMOUNT THERE WAS DEDUCTED THE SUM OF $2,009.31, COVERING CERTAIN LABOR CLAIMS, AND THE FURTHER SUM OF $4,770.66 ON ACCOUNT OF A TAX CLAIM ASSERTED BY THE INTERNAL REVENUE SERVICE.
THERE IS ENCLOSED FOR YOUR INFORMATION A COPY OF A LETTER DATED NOVEMBER 29, 1960, FROM THE MARYLAND CASUALTY COMPANY, STATING THAT THAT COMPANY SUSTAINED AN UNREIMBURSED COMPLETION LOSS OF $16,367.38 UNDER THE INDICATED CONTRACT, AND DEMANDING PAYMENT OF THE UNEXPENDED BALANCE OF $14,903.88. THE MATTER WAS CONSIDERED IN OUR DECISION DATED DECEMBER 8, 1960, IN WHICH WE ADVISED THE MARYLAND CASUALTY COMPANY THAT WE DO NOT CONTEST THE RIGHT OF THE COMPLETING SURETY TO RECEIVE ANY AMOUNT REMAINING IN THE CONTRACT FUND UP TO THE COST OF COMPLETION, NOTWITHSTANDING ANY OUTSTANDING TAX OR LABOR CLAIMS AGAINST THE ORIGINAL CONTRACTOR.
WE HAVE RECEIVED FROM THE MARYLAND CASUALTY COMPANY A FURTHER LETTER DATED JULY 20, 1961 (COPY ENCLOSED), RELATING TO THE BALANCE OF $4,770.66, SHOWN BY THE RECORD AS BEING THE OUTSTANDING AMOUNT UNDER THE CONTRACT. IT APPEARS THAT WE INADVERTENTLY FAILED TO TRANSMIT FOR YOUR GUIDANCE A COPY OF OUR DECISION DATED DECEMBER 8, 1960, TO THE SURETY, AND THE SAME IS ENCLOSED. IF YOU FIND, AS ALLEGED IN THE LETTER OF NOVEMBER 29, 1960, THAT THE SURETY SUSTAINED AN UNREIMBURSED COMPLETION COST OF $16,367.38 UNDER THE CONTRACT INVOLVED, IT WOULD APPEAR THAT THE CLAIMED AMOUNT OF $4,770.66 IS PAYABLE TO THE SURETY UNDER OUR HOLDING IN PARAGRAPH TWO ON PAGE TWO OF THE DECISION OF DECEMBER 8, 1960. WE ARE TRANSMITTING A COPY OF THIS LETTER TO THE SURETY FOR ITS INFORMATION.