Cancellation of Purchase Order

A contractor submitted a claim for the contract price of equipment delivered to the procuring agency. The agency tried to cancel its order subsequent to delivery. The cancellation of the purchase order was improper where the awardee neither knew that the award was in violation of Government regulations, nor, by its action, caused the award to be made. Exhaustion of the agency's appropriation subsequent to the contract award did not affect the validity of the contract nor the Government's payment obligations.