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Authorization for Payment on Quantum Meruit Basis

B-200372 Nov 18, 1980
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Highlights

The National Park Service (NPS) requested a decision on whether it may certify payment on a quantum meruit basis to a construction company. An NPS concessionaire, pursuant to its concession contract, contracted with the construction company to construct a restaurant. However, certain work was done outside the restaurant that was specifically excluded from the contract. The company apparently was informed by the concessionaire that NPS would sign a separate contract for the work specifically excluded from the company contract with the concessionaire. The company never received a contract for the work from the Government, but the work was done. Although the company claimed it spent $5,000 on the excluded items, NPS determined that only $3,500 of the work was compatible with the final plans and design which NPS required. The company agreed to accept such an amount for its work. GAO held that since no contract between the company and the United States existed, the company would have to recover on a quantum meruit basis. The contracting officer stated that NPS received a $3,500 benefit resulting from the company's work. Therefore, he impliedly ratified the unauthorized work and the amount thereof. Accordingly, payment on a quantum meruit basis for $3,500 may be allowed, if otherwise proper and correct.

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