[Payment on Quantum Meruit Basis in Absence of Formal Contract]

The Navy requested an advance decision as to the legality of certification for payment to a private firm for services rendered for the maintenance of data processing systems for a 3-month period. The Navy also requested a decision as to which fiscal year appropriation should be charged with the payment. Although the Navy and the firm did not enter into a formally executed contract covering the services for the period in question, the Navy requested that the firm provide the services since the firm had provided them under a recently expired Government contract. Due to technical irregularities and confusion in the Navy procurement process, no express contract arose for the performance of work during this period. GAO held that, although no formal contract existed, the Government received a benefit, and contracting for the services was not prohibited by statute or regulation. Accordingly, payment may be made on a quantum meruit basis. The proper appropriation account to be charged with payment would be the fiscal year appropriation current when the liability for the payment arose.