B-168228, NOV. 26, 1969

B-168228, NOV. 26, 1969

PAYMENTS--ABSENCE OR UNENFORCEABILITY OF CONTRACTS--QUANTUM MERUIT- APPROVAL OF SERVICE, ETC; BY IMPLICATION WHERE NAVY CONTRACT MODIFICATION EFFECTIVE DEC. 1, 1965 PROVIDED FOR 150 MAN-DAYS OF ENGINEERING SERVICES WITH SUPPORT, AND UPON COMPLETION OF 150 MAN-DAYS CONTRACTOR CONTINUED SERVICE WITHOUT CONTRACTUAL COVERAGE (WITH KNOWLEDGE OF NAVY PERSONNEL OTHER THAN CONTRACTING OFFICER) AS NEED REMAINED, AND ON APRIL 12, 1967 CONTRACT WAS PROSPECTIVELY AWARDED FIRM FOR CONTINUANCE OF SERVICE (ABSENT AUTHORITY TO PROVIDE RETROACTIVE COVERAGE), CLAIM FOR COSTS INCURRED DURING PERIOD WHEN THERE WAS NO FORMAL CONTRACTUAL COVERAGE MAY BE ALLOWED ON QUANTUM MERUIT BASIS, AS SERVICES IN QUESTION WERE SATISFACTORILY PERFORMED AND WERE OF GREAT VALUE AND BENEFIT TO GOVT; AND SERVICES WERE AT LEAST RATIFIED BY ISSUANCE OF CONTRACT TO CONTRACTOR FOR BALANCE OF WORK.

TO MR. SECRETARY:

REFERENCE IS MADE TO LETTER OOJ:RHM:JAW, NOBSR-87735, N00024-67-C 1323, SER 158, WITH ENCLOSURES, DATED OCTOBER 27, 1969, FROM THE COUNSEL FOR NAVAL SHIP SYSTEMS COMMAND, FORWARDING WITH A FAVORABLE RECOMMENDATION THE CLAIM OF FREQUENCY ENGINEERING LABORATORIES, DIVISION OF HARVARD INDUSTRIES, INC., FOR $38,290.60, REPRESENTING COSTS INCURRED IN THE PERFORMANCE OF ENGINEERING SERVICES FOR WHICH THERE WAS NO FORMAL CONTRACTUAL COVERAGE.

THE RECORD DISCLOSES THAT A $4,325,671 CONTRACT (NOBSR-87735) WAS AWARDED TO FREQUENCY ENGINEERING ON JUNE 30, 1962, FOR RECEIVERS, TUNERS, MODIFICATION KITS, AUXILIARY POWER SUPPLY UNITS, ASSOCIATED REPAIR PARTS AND TECHNICAL DATA. MODIFICATION NO. 29 TO THE CONTRACT DATED NOVEMBER 2, 1966, EFFECTIVE DECEMBER 1, 1965, PROVIDED FOR 150 MAN-DAYS OF ENGINEERING SERVICES WITH ASSOCIATED SUPPORT FOR THE ESTIMATED TOTAL AMOUNT OF $33,157. AFTER THE CONTRACTOR COMPLETED 150 MAN-DAYS OF SERVICE IT CONTINUED TO PROVIDE THE SAME SERVICE WITHOUT CONTRACTUAL COVERAGE WITH THE KNOWLEDGE OF NAVAL SHIP SYSTEMS COMMAND PERSONNEL OTHER THAN THE CONTRACTING OFFICER. THE NEED FOR THE SERVICE REMAINED AND ON APRIL 12, 1967, CONTRACT N00024-67-C-1323 WAS AWARDED TO THE CONTRACTOR FOR THE CONTINUANCE OF THE SERVICE. HOWEVER, THE CONTRACT WAS ISSUED PROSPECTIVELY SINCE AUTHORITY WAS LACKING TO PROVIDE RETROACTIVE COVERAGE.

PAYMENT MAY BE MADE FOR UNAUTHORIZED SERVICES RENDERED ON A QUANTUM MERUIT BASIS, IF TWO CONDITIONS EXIST: (1) THE GOVERNMENT HAS RECEIVED A BENEFIT, AND (2) THE UNAUTHORIZED SERVICES WERE EXPRESSLY OR IMPLIEDLY RATIFIED BY AUTHORIZED CONTRACTING OFFICIALS OF THE GOVERNMENT. 46 COMP. GEN. 348 (1966); B-166439, MAY 2, 1969; B-163819, OCTOBER 11, 1968. IT IS INDICATED THAT THE SERVICES IN QUESTION WERE SATISFACTORILY PERFORMED AND WERE OF GREAT VALUE AND BENEFIT TO THE GOVERNMENT. IN ADDITION, IT APPEARS THAT THE SERVICES WERE AT LEAST RATIFIED BY THE ISSUANCE OF A CONTRACT TO THE CONTRACTOR FOR THE BALANCE OF THE WORK.

IN LIGHT OF THE AFORE GOING, THE CLAIM, IF OTHERWISE CORRECT, MAY BE ALLOWED AS RECOMMENDED BY COUNSEL.

THE ENCLOSURES FORWARDED WITH THE ADMINISTRATIVE REPORT ARE RETURNED AS REQUESTED.