Payment for Housekeeping Services Purchased by Army From Nonappropriated Fund Instrumentality

A Finance and Accounting Officer questioned whether it was proper to certify for payment a voucher in favor of a nonappropriated fund instrumentality (NAFI). Specifically, the Finance and Accounting Officer questioned the propriety of an appropriated fund activity, the Army, obtaining services from a NAFI without using a contract or purchase order processed through a contracting official. The voucher represented the value of housekeeping services rendered while certain military personnel were quartered at Nellis Air Force Base during training exercises. GAO held that obtaining goods and services from a NAFI was tantamount to obtaining them from non-Governmental commercial sources, and that purchase of the services should have been accomplished by a contract or regular purchase order. However, since the Army obtained the benefits of these services, the NAFI may be paid on a quantum meruit basis provided the services are ratified by an appropriate contracting official of the Army.