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B-195173 1 (1979-07-16)

handle is hein.gao/gaobadhkg0001 and id is 1 raw text is: 

I .4. I,


                      p THE  COMPTROLLER GENERAL
DECISION .     * OF THE UNITEO STATES
                 o*   'WASHINGTON, D. C. 20548


FILE: B-195173


DATE: July 16, 1979


MATTER  OF: Fe eral Aviation Administration - A60&6
              Request for Advance Decision 7

DIGEST:

      Even though costs incurred under
      contracts awarded pursuant to grant
      projects were based on cost-plus-
      percentage-of-cost contracting,
      contractor can be paid on quantum
      meruit/quantum valebat basis as
      agency has determined costs to be
      reasonable and Government received
      benefit of services.

      The Rocky Mountain Region, Federal Aviation
 Administration (FAA), Department of Transportation
 (DOT), has requested our Office's opinion as to
 whether certain costs incurred under contracts
 awarded pursuant to two grant projects of the
 Airport Development Aid Program (ADAP) are payable.

      The projects involved are ADAP Project
 No. 6-30-0046-04, Kalispell, Montana, and ADAP
 Project No. 6-30-0012-05, Butte, Montana. Recent
 audits by the Office of the Inspector General, DOT,
 have disclosed that portions of the engineering con-
 tracts for the projects were based on a cost-plus-
 percentage-of-cost (CPPC) method of contracting.

      A                          Aiatio rvRegulat-ions
 part 1    sta±.es that the CPPC method of contracting
 will not be used in connection with ADAP projects.
 'T-K urner NU. /240i.3, cnapter 1,-paragraph-9-d,
 requires that the Comptroller General be consulted
 as to the propriety of payments under illegal
 contracts.

      The FAA    i    $-4 hat-- ai- thetime the contr cts
 were approved, the contracts contained a not-4o-

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