[Query Concerning a Surety's Role Under Defaulted Construction Contracts]

B-207993: Aug 18, 1982

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This document is regarding a letter concerning a surety's role under defaulted construction contracts. An individual was concerned that the National Aeronautics and Space Administration may not allow the surety the option of finding a substitute contractor, thus limiting the surety to entering into a takeover agreement. GAO found that federal regulations rightfully reserve discretion to the Government to decide which arrangement best serves the Government's interest.