[Alleged GSA Refusal To Make Progress Payments to Prime Contractors]

GAO reviewed the General Services Administration's refusal to make progress payments to prime contractors for stored construction materials. GAO found that: (1) the government will not include the cost of construction materials in prime contractor progress payments when subcontractors do not require payment until 30 to 60 days after the materials are delivered; (2) the contracting officer may only include the cost of materials delivered to a contractor if the contractor furnishes evidence of the title to the materials; and (3) although the requirement for proof of title may not benefit all subcontractors, the interests of subcontractors do not outweigh the government's interest in receiving title to the materials in return for payment.