Propriety of Paying an Invoice for Repair of Copy Machine

The National Guard Bureau requested an advance decision on behalf of its signal command unit regarding the propriety of paying an invoice for the repair of a copy machine by the company's service representative. The National Guard authorized the unit to contract for an equipment maintenance agreement with the company to cover repairs to the machine. Although it was apparently the unit's belief that the service contract would be automatically renewed each year for the duration of the machine's use, no request by the unit was made for renewal, and the National Guard did not renew the maintenance contract. Without knowing this, the unit arranged for needed service and repair by the company's service representative. The company billed for expenses under the expired 1979 agreement for the repairs. Although no formally executed contract existed between the unit and the company, payment may be made for services rendered on a quantum meruit basis. Recognition of a right on that basis requires a showing that the Government received a benefit and that ratification was given by an authorized contracting official of the Government. The National Guard reported that the repairs were required and that the Government received a benefit. The National Guard requested and recommended that GAO authorize payment of the bill. Since the Government received a benefit and ratification may be implied from the facts, payment on a quantum meruit basis should be allowed.