B-205947.OM, JAN 27, 1982

B-205947.OM: Jan 27, 1982

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

DIGEST: WHEN RENTAL EQUIPMENT IS RETAINED BY AGENCY BEYOND EXPIRATION OF LEASE TERM WITHOUT PRIOR AUTHORIZATION OR CONTRACTUAL COVERAGE. RENT MAY BE PAID TO THE EQUIPMENT OWNER ON A QUANTUM VALEBANT BASIS PROVIDED THAT: (1) THE PROPOSED RENTAL CHARGE IS REASONABLE. (2) PAYMENT WOULD NOT VIOLATE STATUTE OR REGULATION AND (3) PAYMENT IS RECOMMENDED BY AN AUTHORIZED CONTRACTING OFFICER. THE RENTAL RATES QUOTED BY IRI FOR THE PERIOD IN QUESTION ARE FAIR AND REASONABLE. (UNITED) IS FORWARDED FOR YOUR DETERMINATION. IS FOR SERVICES RENDERED TO THE DEPARTMENT OF THE NAVY WITHOUT CONTRACTURAL COVERAGE. A MEMORANDUM REQUESTING RETURN OF THE CONTRACTOR'S EQUIPMENT WAS DISPATCHED TO ALL UNITS. WE HAVE DETERMINED THAT HE IS A NAVAL CONTRACTING OFFICER WITH UNLIMITED AUTHORITY.

B-205947.OM, JAN 27, 1982

DIGEST: WHEN RENTAL EQUIPMENT IS RETAINED BY AGENCY BEYOND EXPIRATION OF LEASE TERM WITHOUT PRIOR AUTHORIZATION OR CONTRACTUAL COVERAGE, RENT MAY BE PAID TO THE EQUIPMENT OWNER ON A QUANTUM VALEBANT BASIS PROVIDED THAT: (1) THE PROPOSED RENTAL CHARGE IS REASONABLE, (2) PAYMENT WOULD NOT VIOLATE STATUTE OR REGULATION AND (3) PAYMENT IS RECOMMENDED BY AN AUTHORIZED CONTRACTING OFFICER.

DIRECTOR, AFMD - CLAIMS GROUP:

RETURNED. HERE IT APPEARS THAT THE GOVERNMENT OBTAINED A BENEFIT WHICH SATISFIED A GENUINE NEED; THE LESSOR, UNITED STATES INSTRUMENT RENTAL INCORPORATED (IRI), PROVIDED EQUIPMENT BEYOND THE EXPIRATION OF A LEASE TERM. THE RENTAL RATES QUOTED BY IRI FOR THE PERIOD IN QUESTION ARE FAIR AND REASONABLE, AND PAYMENT WOULD NOT VIOLATE A STATUTE OR REGULATION. FURTHERMORE, SINCE PAYMENT HAS BEEN RECOMMENDED BY AN AUTHORIZED CONTRACTING OFFICER, RATIFICATION MAY BE IMPLIED. ACCORDINGLY, PAYMENT MAY PROPERLY BE MADE ON A QUANTUM VALEBANT BASIS IN THE AMOUNT OF $35,852. BUREAU OF LAND MANAGEMENT, B-200095, OCTOBER 8, 1980, 80-2 CPD 257.

THE COMPTROLLER GENERAL

THE CLAIM OF UNITED STATES INSTRUMENT RENTALS, INCORPORATED, (UNITED) IS FORWARDED FOR YOUR DETERMINATION. THIS CLAIM, IN THE AMOUNT OF $35,852.00, IS FOR SERVICES RENDERED TO THE DEPARTMENT OF THE NAVY WITHOUT CONTRACTURAL COVERAGE.

NAVY RECORDS SHOW THAT, ON MAY 27, 1980, THE GENERAL SERVICES ADMINISTRATION ADVISED NAVY PURCHASING OFFICES THAT THE OUTSTANDING TEST EQUIPMENT RENTAL CONTRACT WITH UNITED WOULD EXPIRE ON MAY 31, 1980, AND WOULD NOT BE RENEWED. A MEMORANDUM REQUESTING RETURN OF THE CONTRACTOR'S EQUIPMENT WAS DISPATCHED TO ALL UNITS. HOWEVER, AN ENGINEER AT THE NAVAL ELECTRONIC SYSTEMS ENGINEERING COMMAND, PORTSMOUTH, DECIDED NOT TO RETURN THE EQUIPMENT UNDER HIS CONTROL UNTIL REPLACEMENTS COULD BE FOUND, SO THAT THE MISSION OF THE COMMAND WOULD NOT BE HINDERED.

MR. J. W. CONRAD, BY DIRECTION OF THE COMMANDING OFFICER, NAVAL SUPPLY CENTER, NORFOLK, STATES THAT THE GOVERNMENT DERIVED BENEFIT FROM THE SERVICES RENDERED AND RECOMMENDS PAYMENT. WE HAVE DETERMINED THAT HE IS A NAVAL CONTRACTING OFFICER WITH UNLIMITED AUTHORITY. HIS RECOMMENDATION, THEREFORE, CONSTITUTES AN IMPLIED RATIFICATION OF THE IRREGULAR PROCUREMENT. ACCORDINGLY, PAYMENT IS WARRANTED ON A QUANTUM MERUIT BASIS. SINCE THE CLAIM EXCEEDS $25,000, WE FORWARD IT FOR YOUR CONSIDERATION IN VIEW OF ITEM 11, B-112701, JUNE 28, 1954, AS MODIFIED BY B-189738-O.M., SEPTEMBER 30, 1977.

IF YOU HAVE ANY QUESTIONS CONCERNING THIS MATTER, PLEASE CONTACT MR. LAWRENCE M. BOBIER AT 275-3218.