The Navy requested a decision regarding whether it should reimburse a firm for repairs to government-owned equipment. The claimant had reimbursed the firm that performed the repair work, and the Navy denied reimbursement because it did not authorize the repairs. GAO held that the Navy should pay the claimant on a quantum meruit basis, since the: (1) Navy received and accepted the equipment, and used it after repairs were made; (2) Navy determined that the repair amount was fair and reasonable; and (3) claimant acted in good faith. Accordingly, the claim was allowed.
Skip to Highlights