[Withheld Contractor Payment Under DLA Solicitation Pending Resolution of Bid Collusion Issue]

B-230095: Mar 16, 1988

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The Defense Logistics Agency (DLA) requested an advance decision regarding the propriety of paying a contract performance claim to a contractor accused of bid collusion. GAO held that neither the Contract Disputes Act of 1978 nor the Federal Acquisition Regulations vested GAO with the authority to resolve the bid collusion issue. Accordingly, DLA should: (1) refer the matter to the Department of Justice for resolution; and (2) withhold payment pending resolution in the contractor's favor.

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