A-50769, A-54011, JULY 24, 1934, 14 COMP. GEN. 61

A-50769,A-54011: Jul 24, 1934

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" IS NOT APPLICABLE TO A SUB-SUBCONTRACTOR PERFORMING WORK OR FURNISHING MATERIAL TO A SUBCONTRACTOR OF THE GOVERNMENT CONTRACTOR. AS FOLLOWS: THERE ARE ATTACHED HERETO COPIES OF LETTERS RECEIVED FROM THE PENKER CONSTRUCTION COMPANY AND THE GENERAL BRONZE CORPORATION RELATIVE TO RELIEF UNDER PUBLIC ACT 369. THE ATTACHED LETTERS RAISE TWO QUESTIONS: (1) MAY A PERSON FURNISHING LABOR OR MATERIAL TO THE SUBCONTRACTOR OF A CONTRACTOR HAVING A CONTRACT DIRECT WITH THE GOVERNMENT PRESENT A CLAIM FOR RELIEF UNDER THE ACT? (2) MAY A CLAIM BY A PERSON FURNISHING LABOR OR MATERIAL TO THE SUBCONTRACTOR OF A CONTRACTOR HAVING A CONTRACT DIRECT WITH THE GOVERNMENT BE PRESENTED ON BEHALF OF SUCH PERSON BY EITHER THE SUBCONTRACTOR TO WHOM THE LABOR OR MATERIAL WAS FURNISHED OR BY THE CONTRACTOR HAVING THE CONTRACT DIRECT WITH THE GOVERNMENT?

A-50769, A-54011, JULY 24, 1934, 14 COMP. GEN. 61

CONTRACTORS - RELIEF ACT THE ACT OF JUNE 16, 1934, 48 STAT. 974, AUTHORIZING THE ADJUSTMENT AND SETTLEMENT ON A FAIR AND EQUITABLE BASIS OF CLAIMS OF PERSONS WHO ENTERED INTO A CONTRACT OR CONTRACTS WITH THE UNITED STATES PRIOR TO AUGUST 10, 1933,"INCLUDING SUBCONTRACTORS AND MATERIAL MEN PERFORMING WORK OR FURNISHING MATERIAL OR NECESSARY FUEL DIRECT TO THE CONTRACTOR UNDER SUCH CONTRACTS," IS NOT APPLICABLE TO A SUB-SUBCONTRACTOR PERFORMING WORK OR FURNISHING MATERIAL TO A SUBCONTRACTOR OF THE GOVERNMENT CONTRACTOR, NOR TO A THIRD PARTY INTERVENING BETWEEN THE PERSON PERFORMING WORK OR FURNISHING MATERIAL AND THE CONTRACTOR.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE TREASURY, JULY 24, 1934:

THERE HAS BEEN RECEIVED YOUR LETTER OF JULY 20, 1934, AS FOLLOWS:

THERE ARE ATTACHED HERETO COPIES OF LETTERS RECEIVED FROM THE PENKER CONSTRUCTION COMPANY AND THE GENERAL BRONZE CORPORATION RELATIVE TO RELIEF UNDER PUBLIC ACT 369.

THE ATTACHED LETTERS RAISE TWO QUESTIONS:

(1) MAY A PERSON FURNISHING LABOR OR MATERIAL TO THE SUBCONTRACTOR OF A CONTRACTOR HAVING A CONTRACT DIRECT WITH THE GOVERNMENT PRESENT A CLAIM FOR RELIEF UNDER THE ACT?

(2) MAY A CLAIM BY A PERSON FURNISHING LABOR OR MATERIAL TO THE SUBCONTRACTOR OF A CONTRACTOR HAVING A CONTRACT DIRECT WITH THE GOVERNMENT BE PRESENTED ON BEHALF OF SUCH PERSON BY EITHER THE SUBCONTRACTOR TO WHOM THE LABOR OR MATERIAL WAS FURNISHED OR BY THE CONTRACTOR HAVING THE CONTRACT DIRECT WITH THE GOVERNMENT?

SINCE THE ADJUSTMENT AND SETTLEMENT OF CLAIMS UNDER PUBLIC ACT 369 IS VESTED IN YOU, THE ABOVE QUESTIONS ARE SUBMITTED FOR YOUR DETERMINATION.

THE MATERIAL PART OF THE REFERRED-TO ACT OF JUNE 16, 1934, 48 STAT. 974, IN THIS CONNECTION IS THE AUTHORITY TO ADJUST AND SETTLE ON A FAIR AND EQUITABLE BASIS CLAIMS OF PERSONS WHO ENTERED INTO A CONTRACT OR CONTRACTS WITH THE UNITED STATES PRIOR TO AUGUST 10, 1933,"INCLUDING SUBCONTRACTORS AND MATERIAL MEN PERFORMING WORK OR FURNISHING MATERIAL OR NECESSARY FUEL DIRECT TO THE CONTRACTOR UNDER SUCH CONTRACTS.' A SUB-SUBCONTRACTOR PERFORMING WORK OR FURNISHING MATERIAL TO A SUBCONTRACTOR OF THE CONTRACTOR IS NOT PERFORMING WORK OR FURNISHING MATERIAL DIRECT TO THE CONTRACTOR AS REQUIRED BY THE TERMS OF THE ACT OF JUNE 16, 1934. WHERE SOME THIRD PARTY, SUCH AS A SUBCONTRACTOR, INTERVENES BETWEEN THE PERSON PERFORMING WORK OR FURNISHING MATERIAL AND THE CONTRACTOR, IT IS TOO CLEAR FOR SERIOUS ARGUMENT THAT SUCH WORK OR MATERIAL IS NOT FURNISHED DIRECT TO THE CONTRACTOR.

CONSEQUENTLY YOU ARE ADVISED THAT CLAIMS OF SUB-SUBCONTRACTORS AND OTHERS WHOSE AGREEMENTS WERE NOT WITH THE CONTRACTOR PERFORMING WORK OR DELIVERING SUPPLIES UNDER A CONTRACT BETWEEN THE UNITED STATES AND SUCH CONTRACTOR DID NOT PERFORM WORK OR FURNISH MATERIAL DIRECT TO THE CONTRACTOR AND THE CLAIMS OF SUCH THIRD PARTIES TO THE CONTRACTOR MAY NOT BE CONSIDERED UNDER THE ACT OF JUNE 16, 1934, WHETHER FILED BY SUCH SUB- SUBCONTRACTORS DIRECT OR THROUGH THE CONTRACTOR OR HIS SUBCONTRACTOR.