[Decision Concerning Navy's Payment to Contractor for Chemical Supplies]

The Navy requested a decision as to whether it should pay a firm for chemical supplies, and the proper amount of the payment. GAO held that the Navy was not legally obligated to pay the firm for goods or services under an unauthorized procurement agreement; however, since the Navy received and accepted the chemicals at the firm's expense and the supplies constituted a permissible procurement, it could authorize payment on a quantum valebant basis. Accordingly, the Navy should pay the firm the reasonable value of the supplies procured.