B-168656, JAN. 13, 1970

B-168656: Jan 13, 1970

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ADVISING THAT RESPONSIBILITY TO SUBCONTRACTORS UNDER GOVERNMENT CONSTRUCTION CONTRACTS IS LIMITED TO FURNISHING COPIES OF MILLER ACT CONTRACTS AND PAYMENT BONDS WHEN ENTITLEMENT HAS BEEN ESTABLISHED. YOU STATE THAT THERE IS DUE YOUR FIRM THE SUM OF $4. OUR RESPONSIBILITY TO SUBCONTRACTORS UNDER GOVERNMENT CONSTRUCTION CONTRACTS IS LIMITED TO FURNISHING COPIES OF MILLER ACT CONTRACTS AND PAYMENT BONDS WHEN ENTITLEMENT HAS BEEN ESTABLISHED BY AFFIDAVIT IN THE MANNER PRESCRIBED BY SECTION 3 OF THE MILLER ACT. THE MILLER ACT PAYMENT BOND IS THE ONLY PROTECTION PROVIDED BY THE GOVERNMENT FOR SUBCONTRACTORS. HE IS GIVEN THE RIGHT UNDER SECTION 2 OF THE MILLER ACT. TO SUE FOR COLLECTION UNDER THE PAYMENT BOND IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT IN WHICH THE CONTRACT WAS PERFORMED AND EXECUTED 90 DAYS AFTER.

B-168656, JAN. 13, 1970

CONTRACTS--SUBCONTRACTS--PAYMENTS DECISION TO O'FERRALL, INC; ADVISING THAT RESPONSIBILITY TO SUBCONTRACTORS UNDER GOVERNMENT CONSTRUCTION CONTRACTS IS LIMITED TO FURNISHING COPIES OF MILLER ACT CONTRACTS AND PAYMENT BONDS WHEN ENTITLEMENT HAS BEEN ESTABLISHED.

TO O'FERRALL, INC.:

IN YOUR LETTER OF DECEMBER 11, 1969, YOU STATE THAT THERE IS DUE YOUR FIRM THE SUM OF $4,050 FOR WORK FURNISHED NORTHEAST CONSTRUCTION CO. OF WEST VIRGINIA, THE PRIME CONTRACTOR UNDER CONTRACT T75CG-239, DATED SEPTEMBER 13, 1967, AND YOU REQUEST OUR ASSISTANCE IN COLLECTING THE BALANCE.

OUR RESPONSIBILITY TO SUBCONTRACTORS UNDER GOVERNMENT CONSTRUCTION CONTRACTS IS LIMITED TO FURNISHING COPIES OF MILLER ACT CONTRACTS AND PAYMENT BONDS WHEN ENTITLEMENT HAS BEEN ESTABLISHED BY AFFIDAVIT IN THE MANNER PRESCRIBED BY SECTION 3 OF THE MILLER ACT, 40 U.S.C. 270C.

THE MILLER ACT PAYMENT BOND IS THE ONLY PROTECTION PROVIDED BY THE GOVERNMENT FOR SUBCONTRACTORS. IN THE EVENT ANY SUBCONTRACTOR FURNISHING LABOR AND MATERIAL USED IN THE PROSECUTION OF THE PRIME CONTRACT CONTINUES TO BE AGGRIEVED AFTER ATTEMPTING TO WORK OUT AN ADJUSTMENT OF HIS UNPAID ACCOUNT WITH THE CONTRACTOR AND ITS SURETY,HE IS GIVEN THE RIGHT UNDER SECTION 2 OF THE MILLER ACT, 40 U.S.C. 270B, TO SUE FOR COLLECTION UNDER THE PAYMENT BOND IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT IN WHICH THE CONTRACT WAS PERFORMED AND EXECUTED 90 DAYS AFTER, BUT NO LATER THAN 1 YEAR AFTER, FURNISHING THE LAST LABOR AND SUPPLIES.