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B-194853 1 (1979-09-21)

handle is hein.gao/gaobadhpw0001 and id is 1 raw text is: 4 DECISION THE COMPTROLLER GENERAL ''<. OF THE UNITED STATES WASHINGTON, .C. 20548 FILE: B-194853 DATE: September 21, 1979 MATTER OF: Rust Tractor Company w Q (L DIGEST: ayment mey-be-made to & contractr for repair work to Government equipment eve Ugh formal contracting procedures were not followed because Government received the benefit and has specifi- cally ratified the transaction. Appropriation available at time contractor was authorized to and actually performed the repair work should be charged, irrespective of fiscal year in which the transaction was ratified. A certifying officer for the Bureau of Indian Affairs (BIA) in Albuquerque, New Mexico, has requested an advance decision from our Office as to whether he may certify a voucher in the amount of $22,875.36 to pay the Rust Tractor Company (Rust) for its services. He questions the propriety of making such a payment because formal procurement procedures were not followed and the transaction with Rust was not properly authorized. Apparently, the instant situation aose as a result of a mis- understanding between personnel at the Ramah-Navajo Agency's Branch of Roads (Agency) and Rust. When repair work was needed for a Cat- erpillar Scraper, an estimate prepared by Rust was verbally quoted to the agency as $6,500. The Agency's branch chief authorized Rust to proceed with the repair work. Agency personnel did not realize until receiving Rust's invoices for the work that the quoted estimate was for labor only and did not cover parts. Rust was uncertain when it prepared the estimate what parts would actually be necessary. The Agency had indicated that it would never have permitted Rust to proceed with the repair work if it had known that the total cost of the work was $22,875.36, since this amount exceeds its delegated procurement authority. However, the Agency has certified that the cost of repairing the equipment was valid and proper, that the re- pair work was necessary to place the equipment in operative condition and that the repair work has extended the useful life of the equip- ment for at least five additional years. The cost of replacing the equipment instead of repairing it would have been three times the total cost of the repair. The Agency also informs us that if pro- per procurement procedures had been followed, Rust would have re- ceived the authorized contract to do the repair work since it was

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