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B-225115, FEB 20, 1987, 87-1 CPD 191

B-225115: Feb 20, 1987

A DIRECTION IN A TAKEOVER AGREEMENT BETWEEN THE SURETY AND THE GOVERNMENT THAT THE SURETY BE PAID AMOUNTS THAT BECOME PROGRESSIVELY DUE IN THE SAME FASHION AND AT THE SAME TIMES AS SUMS OTHERWISE WOULD HAVE BEEN PAID TO THE CONTRACTOR DOES NOT ALTER APPLICABLE LAW THAT THE SURETY NOT RECOVER MORE THAN THE ACTUAL COSTS AND EXPENSES IT INCURS IN COMPLETING THE CONTRACT. SINCE THE TAKEOVER AGREEMENT...

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[Decision on Proper Distribution of Proceeds Under Contract Between VA and SBA and Subcontract Between SBA and Firm]

B-225115: Feb 20, 1987

The Veterans Administration (VA) requested a decision on the proper distribution of proceeds under a contract between VA and the Small Business Administration (SBA) and on the subcontract between SBA and a prime contractor for the development of gravesites. GAO noted that the surety completed the contract performance requirements when the contract between SBA and the subcontractor was terminated f...

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