Payment to Unpaid Supplier of Defaulted Government Contract

The Department of the Navy questioned whether payment may be made to an unpaid supplier of a defaulted Government contractor in a situation where the performance and payment bonds furnished by the contractor to the Navy were invalid and there was no surety from which the supplier could recover. Although the Government negligently failed to insure that Miller Act bonds were filed, the supplier's remedy lies against the contractor and not against the Government. The unpaid supplier does have a claim to money earned by the defaulted contractor and not retained by the Government.