B-183043, APR 4, 1975

B-183043: Apr 4, 1975

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WHERE PURCHASE ORDER FOR REFURBISHING LIFE RAFTS IS ACCEPTED BY CLAIMANT AFTER WORK IS COMPLETED BUT WITH EXCEPTIONS. AN ORAL SOLICITATION WAS JUSTIFIED UNDER THE PUBLIC EXIGENCY EXCEPTION (10 U.S.C. THE CLAIM ARISES FROM THE FACT THAT WORK WAS PERFORMED BY THE CLAIMANT AND ACCEPTED BY THE GOVERNMENT WITHOUT THE BENEFIT OF A FORMALLY EXECUTED CONTRACT. 700.80 WAS FORWARDED TO COAST MARINE ON JUNE 15. THE SPECIFICATIONS CALLED FOR THE REPAIR AND REHABILITATION OF 8 LIFE RAFTS OF SPECIFIED TYPES WHICH WERE TO BE DELIVERED TO THE CONTRACTOR BY THE NAVY. COMPLETION AND DELIVERY OF THE 8 RAFTS WERE REQUIRED BY JUNE 25. 5 RAFTS WERE NOT IN CONFORMITY WITH THE SPECIFICATIONS. THE ERROR WAS CORRECTED BY THE NAVY AND COAST MARINE HAD IN ITS POSSESSION SUBSTANTIALLY CORRECT LIFE RAFTS FOR REPAIR AND REHABILITATION BY JUNE 21.

B-183043, APR 4, 1975

WHERE PURCHASE ORDER FOR REFURBISHING LIFE RAFTS IS ACCEPTED BY CLAIMANT AFTER WORK IS COMPLETED BUT WITH EXCEPTIONS, NO CONTRACT RESULTS, BUT CLAIMANT MAY BE PAID ON A QUANTUM MERUIT AND QUANTUM VALEBAT BASIS FOR SERVICES AND MATERIALS FURNISHED AND ACCEPTED BY THE GOVERNMENT.

COAST MARINE AND INDUSTRIAL SUPPLY COMPANY, INC.:

ON JUNE 14, 1973, THE DEPARTMENT OF THE NAVY (NAVAL REGIONAL PROCUREMENT OFFICE, NAVAL SUPPLY CENTER, OAKLAND, CALIFORNIA) NEGOTIATED A PURCHASE AGREEMENT WITH THE CLAIMANT (COAST MARINE) FOR THE REPAIR AND RECONDITIONING OF CERTAIN LIFE RAFTS. AN ORAL SOLICITATION WAS JUSTIFIED UNDER THE PUBLIC EXIGENCY EXCEPTION (10 U.S.C. SEC. 2304(A)(2) (1970)) AS AN "URGENT REQUIREMENT". THE CLAIM ARISES FROM THE FACT THAT WORK WAS PERFORMED BY THE CLAIMANT AND ACCEPTED BY THE GOVERNMENT WITHOUT THE BENEFIT OF A FORMALLY EXECUTED CONTRACT.

PURCHASE AGREEMENT CONTRACT NO. N66314-73-C-3072, IN THE AMOUNT OF $3,700.80 WAS FORWARDED TO COAST MARINE ON JUNE 15, 1973. THE SPECIFICATIONS CALLED FOR THE REPAIR AND REHABILITATION OF 8 LIFE RAFTS OF SPECIFIED TYPES WHICH WERE TO BE DELIVERED TO THE CONTRACTOR BY THE NAVY. COMPLETION AND DELIVERY OF THE 8 RAFTS WERE REQUIRED BY JUNE 25, 1973. JUNE 15, 1973, THE NAVY DELIVERED 8 LIFE RAFTS TO COAST MARINE; HOWEVER, 5 RAFTS WERE NOT IN CONFORMITY WITH THE SPECIFICATIONS. THE ERROR WAS CORRECTED BY THE NAVY AND COAST MARINE HAD IN ITS POSSESSION SUBSTANTIALLY CORRECT LIFE RAFTS FOR REPAIR AND REHABILITATION BY JUNE 21, 1973. A TIME EXTENSION FOR COMPLETION OF THE WORK WAS NEITHER ASKED FOR BY COAST MARINE NOR OFFERED BY THE CONTRACTING OFFICE. THE REPAIRS AND REHABILITATION OF THE LIFE RAFTS, INCLUDING REPLACING OF CERTAIN PARTS WHICH WAS AUTHORIZED, WAS COMPLETED, AND THE RAFTS WERE RETURNED TO AND ACCEPTED BY THE NAVY ON JUNE 26, 1973, NOTWITHSTANDING THE FACT THAT THE PURCHASE ORDER (CONTRACT) HAD NOT BEEN ACCEPTED BY COAST MARINE UNTIL AFTER THE WORK HAD BEEN COMPLETED. BY LETTER DATED JUNE 25, 1973, ADDRESSED TO THE CONTRACTING OFFICER, COAST MARINE RETURNED THE SIGNED CONTRACT WITH A NOTED EXCEPTION FOR AN INCREASE OF $2,101.13 OVER THE PURCHASE ORDER PRICE OF $3,700.80, TOTALLING A CLAIM FOR $5,801.93. IN RESPONSE TO A REQUEST FOR ADDITIONAL INFORMATION, BY LETTER DATED JUNE 26, 1973, COAST MARINE SUBMITTED AN ITEMIZED LIST SHOWING WORK DONE AND ALL MATERIALS WHICH HAD BEEN CONDEMNED AND REPLACED ON EACH OF THE 8 LIFE RAFTS. IN THIS CONNECTION IT MAY BE OBSERVED THAT THE ITEMIZATION SHOWED 9-1/4 HOURS OF OVERTIME AT $20.50 PER HOUR FOR EACH LIFE RAFT, TOTALLING $189.63 FOR EACH LIFE RAFT AND THE AGGREGATE SUM OF $1,517.04 FOR OVERTIME. WE FAIL TO UNDERSTAND THE NECESSITY FOR "OVERTIME" ON THE 3 CORRECT LIFE RAFTS EVEN IF "OVERTIME" UNDER OTHER CIRCUMSTANCES MAY HAVE BEEN NECESSARY. THE ITEMIZATION ALSO SHOWS A CREDIT TO THE GOVERNMENT IN THE AMOUNT OF $50 BECAUSE ONE RAFT WAS OF A SMALLER SIZE THAN CONTEMPLATED AND THE CREDIT REFLECTED THE BASIC SERVICING OF A SMALLER RAFT.

THE CONTRACTING OFFICER EXAMINED THE SUBMITTED BILL AND AGREES THAT COAST MARINE IS ENTITLED TO $3,700.80 (PURCHASE ORDER) PLUS $634.09 FOR MATERIAL AND PARTS LESS THE CREDIT OF $50 MENTIONED ABOVE. RECOMMENDATION IS MADE THAT PAYMENT IN THE AMOUNT OF $4,284.89 BE MADE AND A VOUCHER IN THAT AMOUNT IS ATTACHED.

AT THE OUTSET IT MUST BE POINTED OUT THAT NO WRITTEN CONTRACT WAS COMPLETED BETWEEN THE PARTIES AND THERE WAS NO COMPLETE MEETING OF THE MINDS AS TO THE WORK TO BE DONE. THE NAVY ISSUED A PURCHASE ORDER WITH SPECIFICATIONS FOR WORK TO BE DONE FOR $3,700.80 ON CERTAIN LIFE RAFTS, BUT FORWARDED SEVERAL ERRONEOUS LIFE RAFTS. COAST MARINE BEGAN WORK ON THE CORRECT RAFTS, RETURNED THE ERRONEOUS RAFTS FOR CORRECT RAFTS, AND SIGNED THE PURCHASE ORDER WITH EXCEPTIONS ON COMPLETION OF THE WORK. THE EXCEPTION FOR WHICH THE NAVY IS UNWILLING TO PAY IS FOR "OVERTIME" WHICH COAST MARINE STATES WAS NECESSARY TO COMPLETE WORK BY THE DATE SET IN THE PURCHASE ORDER. IN THIS CONNECTION, THE RECORD CLEARLY INDICATES THAT COAST MARINE WAS ADVISED ON JUNE 21, 1973, AND AT EARLIER TIMES THAT OVERTIME WAS NOT AUTHORIZED AND WOULD NOT BE PAID.

IT IS WELL RECOGNIZED THAT, IN APPROPRIATE CIRCUMSTANCES, PAYMENT MAY BE MADE FOR SERVICES RENDERED ON A QUANTUM MERUIT BASIS (THE REASONABLE VALUE OF WORK AND LABOR), OR FOR GOODS FURNISHED ON A QUANTUM VALEBAT BASIS (THE REASONABLE VALUE OF GOODS SOLD AND DELIVERED). 46 COMP. GEN. 348 (1966). BEFORE A RIGHT TO PAYMENT UNDER SUCH BASIS MAY BE RECOGNIZED IT MUST BE SHOWN THAT THE GOVERNMENT HAS RECEIVED A BENEFIT, AND THAT THE UNAUTHORIZED GOODS OR SERVICES WERE EXPRESSLY OR LEGALLY RATIFIED BY AUTHORIZED OFFICIALS OF THE GOVERNMENT. B-164087, JULY 1, 1968. SEE ALSO B-180630, MAY 2, 1974. THE CONDITIONS MENTIONED HAVE BEEN MET AS TO SERVICES AND PARTS TOTALLING $4,284.89 BUT NOT AS TO THE CLAIM FOR OVERTIME. WE MUST CONCLUDE THAT PAYMENT MAY NOT BE PAID FOR CLAIMED OVERTIME.

SINCE THE VOUCHER SUBMITTED IS IN THE AMOUNT WHICH WE CONSIDER PROPER, WE ARE RETURNING IT HEREWITH AND WILL NOT OBJECT TO ITS PAYMENT ON A QUANTUM MERUIT AND QUANTUM VALEBAT BASIS.