[Query Concerning the Miller Act and Protection It Affords Subcontractors]

A GAO opinion was requested regarding the protection afforded under the Miller Act to subcontractors on projects involving federal funds. GAO stated that a payment bond, which functions as a substitute for mechanic liens not recognizable by the government, is the only protection for nonpayment provided to subcontractors by the government. Where a subcontractor furnishing labor and material used in the performance of a government contract is unable to obtain an adjustment of an unpaid account with the contractor or its surety, the subcontractor has the right to enforce collection through a suit under the payment bond. Finally, the courts have held that Congress intended the scope of the protection of the payment bond to extend no further than to second-tier subcontractors.