[Claim for Reimbursement of Expenses Incurred To Establish Accreditation Program]

A GAO opinion was requested concerning whether the Nuclear Regulatory Commission (NRC) could reimburse an institute for expenses incurred in preparing to carry out an agreement which was terminated by NRC. NRC asked the institute to participate in a proposed accreditation program and executed a written agreement for the program's implementation. The agreement did not promise to reimburse the institute for any expenses it might incur in connection with th program. The institute spent approximately $1.5 million on program preparation but, because NRC never promulgated the proposed rule which required accreditation, but proposed a rule that qualification testing laboratories be accredited, NRC terminated the agreement and concluded that it was not legally obligated to reimburse the institute for the expenses incurred in preparing to conduct the program. GAO reviewed several possible grounds for liability suggested by NRC and agreed that there was no legal basis for reimbursement. The NRC agreement was void because it violated public policy. In addition, NRC was not liable: (1) under the doctrine of promissory estoppel; nor (2) on a quantum meruit basis because the institute's activities did not benefit NRC. Accordingly, GAO held that NRC was not authorized to reimburse the institute.