Question concerning Funds Withheld from a Bankrupt Contract

A decision was requested by an Authorized Certifying Officer for the Department of the Interior regarding the disposition of $53,254.72 withheld under a contract completed by a bankrupt contractor who failed to pay suppliers and subcontractors. The Small Business Administration filed a subrogation and setoff claim against the money held by the agency; the liquidator for the surety also expressed an interest in the money. GAO will not authorize payment to any of the claimants because other claimants could bring suit against the government, forcing it to make duplicate payment. The parties are left to remedies in court.