Claim for Services Rendered to Navy Without Contract

A firm submitted a claim for services rendered to the Navy. No formal contract was ever consummated between the parties, but the firm alleged that the contracting officer authorized performance of the services in question. The Navy had issued a request for proposals on a sole source basis to the firm. The firm responded with a technical proposal which contained restrictive legends and submitted a letter noting that the proposal contained proprietary data. Negotiations ensued for several months while the firm attempted to restrict the Government's use of the data in question. A proposed contract was sent by the Navy to the firm, but it did not contain the requested provisions. It did allow costs under the contract incurred by the contractor to the date of the contract. The firm signed the contract but sent a letter insisting on the recognition of its proprietary rights. As the controversy was not resolved, the Government did not execute the contract and sent the data back to the firm. The firm stated that the Navy had authorized the work and apparently made use of the information submitted. It requested that a contract be issued to permit payment for costs incurred plus a proper fee up to the limits stated in the subject contract. The Navy argued that the claim should be pursued under the Contract Disputes Act. GAO did not agree. The Act was not applicable since the work for which the firm sought relief was completed prior to the effective date of the Act. Payment could be made on a quantum meruit basis for the reasonable value of services furnished to the Government without proper authorization if it could be shown that the Government received a benefit from the procurement, and the procurement was expressly authorized by contracting officials. The Navy denied that it accepted the reports and contended that the information furnished was useless if subject to proprietary restrictions. The firm offered no probative evidence to rebut the Navy's position; thus, GAO concluded that there was no benefit to the Navy. The request for relief was denied.