B-195351: Jan 21, 1980

SMALL BUSINESS ADMINISTRATION: THIS IS OUR DECISION ON THE CLAIM OF THE SECURITY BANK & TRUST COMPANY. THE FACTUAL BASIS FOR THE DECISION WAS PROVIDED BY DOCUMENTED REPORTS FROM THE SBA AND THE DEPARTMENT OF THE ARMY. WE HAVE CONSIDERED THE POSITIONS OF ALL PARTIES. WE CONCLUDE THAT THE GOVERNMENT IS NOT LIABLE TO THE BANK. THE CONTRACT PERIOD WAS EXTENDED BY CONTRACT MODIFICATIONS THROUGH SEPTEMB...

B-195351: Published: Jan 21, 1980. Publicly Released: Jan 21, 1980.

The Small Business Administration (SBA), as the prime contractor for food services at an Army base, subcontracted the work to a small business. The subcontractor was then granted a line of credit from a bank which was to be repaid directly by the SBA from the bimonthly contract payments. The contract was extended for a second year, and the bank was notified of the contract extension as well as a m...