B-219743, AUG 14, 1985, OFFICE OF GENERAL COUNSEL

B-219743, AUG 14, 1985, OFFICE OF GENERAL COUNSEL

GENERAL ACCOUNTING OFFICE - JURISDICTION - CONTRACTS - DISPUTES - UNDER DISPUTES CLAUSE DIGEST: REQUEST THAT GAO INTERVENE IN A DISPUTE WITH THE ARMY UNDER A CONTRACT IS FOR RESOLUTION UNDER THE DISPUTES CLAUSE OF THE CONTRACT AND NOT FOR GAO'S CONSIDERATION.

GAY R. BAIN: OFFICE MANAGER GENERAL SALES ASSOCIATES, LTD. METROPOLITAN SQUARE, SUITE 300 WASHINGTON, D.C. 20005

WE REFER TO YOUR LETTER OF JULY 23, 1985, REQUESTING THAT OUR OFFICE ASSIST YOU IN COLLECTING PAYMENT FOR ITEM NO. 3 OF A PURCHASE ORDER ISSUED BY THE U.S. ARMY KOREA CONTRACTING AGENCY, SEOUL, KOREA. YOU STATE THAT YOU SHIPPED THE ITEM, IBM DISPLAY WRITER RIBBONS, AS PROVIDED IN THE PURCHASE ORDER. HOWEVER, YOUR EFFORTS AT COLLECTING PAYMENT FOR THE ITEM HAVE BEEN UNSUCCESSFUL. CORRESPONDENCE THAT YOU INCLUDED WITH YOUR LETTER INDICATES THAT THE ARMY'S POSITION IS THAT YOUR SHIPMENT WAS NEVER RECEIVED, AND, THEREFORE, THE ARMY IS NOT LIABLE FOR PAYMENT.

WHETHER THE AGENCY IS OBLIGATED TO PAY FOR THE ITEM IS A DISPUTE ARISING UNDER THE PURCHASE ORDER, WHICH MUST BE SETTLED PURSUANT TO THE DISPUTES CLAUSE ATTACHED TO THE ORDER AND THE CONTRACT DISPUTES ACT OF 1978, 41 U.S.C. SECS. 601-13 (1982). THE APPLICABLE CLAUSE AND THE STATUTE PROVIDE THE EXCLUSIVE METHOD FOR RESOLVING CLAIMS RELATED TO A CONTRACT, INCLUDING SUBMISSION OF A CLAIM TO THE RESPONSIBLE CONTRACTING OFFICER AND THE RIGHT TO APPEAL AN ADVERSE DECISION BY THE CONTRACTING OFFICER. OUR OFFICE DOES NOT RESOLVE CONTRACT DISPUTES BETWEEN CONTRACTORS AND GOVERNMENT AGENCIES.

WE REGRET THAT WE ARE UNABLE TO PROVIDE FURTHER ASSISTANCE IN THIS MATTER.