Propriety of Paying Invoices Not Covered by Purchase Order

The Bureau of Land Management (BLM) contracted with a firm to modify the habitat of an endangered fish species. Two previous attempts to perform the job had been made but were delayed. The firm which had been the contractor for the first two attempts, performed the job successfully. However, due to an administrative error, BLM proceeded under the prior purchase order rather than issuing a new one for the third attempt. Moreover, after the project was completed, BLM received an invoice from the firm claiming an amount well in excess of the procurement authority. Although the United States cannot be bound beyond the actual authority conferred upon its agents by statute or regulation, the courts and GAO have held that in appropriate circumstances payment may be made for services rendered on a quantum meruit basis. It was determined that the Government received a benefit from the performance of the contractor, that the amount of the invoice was reasonable, and that an implied ratification could be inferred from the recommendation for payment by an agent of BLM. The legal improprieties in the contract were not regarded as barring relief. Accordingly, payment on a quantum meruit basis for the amount claimed was allowed if otherwise proper.