Alleged Agency's Failure To Comply With Procurement Regulations

The Bureau of Land Management (BLM) requested a decision regarding the propriety of paying a firm an amount owing for the purchase of a mobile home. A BLM district office official solicited quotations for the lease/purchase of a mobile home from three vendors. The quotations were solicited orally without issuance of a formal solicitation document or written specifications. Since the delegation of procurement authority to BLM district offices is limited, the requirement was split to erroneously show the procurement of two trailers, rather than the single unit actually purchased. BLM made payment on two purchase orders, but after it discovered the procurement improprieties, it withheld payment of the third and final purchase order. BLM found that the legal improprieties in the procurement were such that ratification of the contract award was inappropriate. Although the United States cannot be bound beyond the actual authority conferred upon its agents by statute or regulation, the courts and GAO have recognized that, in appropriate circumstances, payment may be made for services rendered on a quantum meruit or quantum valebant basis. Recognition of a right to payment on this basis requires a showing that the Government received a benefit and that the unauthorized action has been expressly or impliedly ratified by authorized contracting officials of the Government. The record indicated that the Government had accepted the trailer and received a benefit, and that the purchase price was considered to be reasonable. Payment on a quantum valebant basis, which may not exceed the supply schedule amount, may be allowed, if otherwise proper and correct and if payment is recommended by an official with the requisite contracting authority.