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[Propriety of Paying Invoices That Exceed Authorized Amount for Small Purchases]

B-207492 Jul 30, 1982
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Highlights

An authorized certifying officer of the Equal Employment Opportunity Commission (EEOC) requested an advance decision concerning the propriety of paying several invoices for small purchases of computer services in connection with enforcement litigation. The services were apparently procured by authorized EEOC representatives under the small purchase authority, which authorizes the negotiation of small purchases aggregating $10,000 or less. It was later discovered that the purchase orders in question totaled $23,500, exceeding the small purchase authorization. Upon review of these purchase orders, the EEOC Legal Counsel determined that the purchases should not have utilized the small purchase negotiating authority. However, before the procurements were questioned, more than half the total charges had been paid. GAO stated that it is clear that EEOC benefited from the services received and that the failure of the agency's authorized representatives to curtail the contractor's activities resulted in a ratification of those actions by implication. Accordingly, payment on a quantum meruit basis may be allowed if otherwise proper and correct.

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