B-186206: Jul 1, 1976

WHERE NOTICE OF CONTRACTOR'S DEFAULT IS RECEIVED BY CONTRACTING OFFICER PRIOR TO RECEIPT OF IRS SETOFF REQUEST AND PERFORMANCE BOND SURETY'S REFUSAL TO ENTER INTO TAKEOVER AGREEMENT IS BASED ON REFUSAL BY FOREST SERVICE TO MAKE AVAILABLE. SURETY'S REFUSAL TO ENTER INTO A TAKEOVER AGREEMENT IS BASED ON THE GOVERNMENT'S REFUSAL TO MAKE AVAILABLE. NOTICE OF CONTRACTOR'S DEFAULT IS RECEIVED BY THE CON...

B-186206: Jul 1, 1976

An agency requested that GAO institute debt collection action against the performance bond surety on a defaulted contract. Such action may not be taken under circumstances in which: the surety refused to enter into a takeover agreement because of the Government's refusal to make available, free from setoff by the Internal Revenue Service (IRS), funds retained under the defaulted contract; and the...