Request for Decision Concerning Contract Between Soil Conservation Service and Small Business Administration

The Soil Conservation Service (SCS) requested resolution of several issues regarding a contract between SCS and the Small Business Administration (SBA). Since SCS awarded an 8(a) construction contract to SBA, the contract was in existence even though the subcontractor later failed to furnish required performance and payment bonds. In deciding a controversy between two Federal agencies, the terms of the agreement as reached by the parties should be given effect by GAO. Since the claim arose under the contract disputes clause, the SCS contracting officer should render a final decision pursuant to the disputes clause concerning the claim against SBA for excess reprocurement costs arising from the default of the small business subcontractor.