[Request for Reconsideration of Decision Concerning Army Joint Payment Agreement Under Solicitation for Fence]

The Army requested reconsideration of a decision concerning a joint payment agreement under a construction contract for fences. GAO had held that the Army was liable to a subcontractor because it breached a joint payment agreement between it, the subcontractor, and the prime contractor. In its request for reconsideration, the Army contended that: (1) it concluded the agreement after the subcontractor delivered the goods; and (2) the subcontractor failed to provide sufficient evidence regarding the amount the Army owed. GAO held that: (1) the Army failed to show that it was not liable for payment under the agreement; and (2) since the subcontractor could not prove the exact amount the Army owed, the Army should pay the amount the agreement stipulated as the value of the materials the subcontractor was to supply. Accordingly, the original decision was affirmed, and GAO noted that, should the subcontractor provide proof of further damages, the Army should make additional payments.