Legal Authority for Payment of Claimed Charges under Terminated Contract

The agency requested an opinion regarding its legal authority to pay claimed charges for damages submitted by a contractor under a contract terminated for the convenience of the Government. GAO considered the case since there were no disputed facts involved in the claim and the claimant had not objected to GAO's deciding the claim. The agency had no authority to agree to the "special charges" provision in the contract which are in violation of funding laws, and no authority exists to pay the amount claimed.