[Payment of Labor Contract Fee on Quantum Meruit Basis]

B-224702.2: Jul 7, 1988

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The Department of Labor (DOL) requested an opinion concerning whether it should include profits in calculating the amount of a quantum meruit payment to a firm following contract termination. GAO held that under quantum meruit there was no legal prohibition against payment of fees or profits for services the firm rendered. Accordingly, DOL should include an amount to cover the profits the firm reasonably would have earned in its payments.

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