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B-201987 1 (1981-06-24)

handle is hein.gao/gaobadjmt0001 and id is 1 raw text is: 0LLER ~ 7 THE COMPTROLLER GENERAL DECISION OF THE UNITED STATES WASHINGTON. 0. C. 20548 FILE: B-201987 DATE: June 24, 1981 MATTER OF: Markwell & Hartz Company DIGEST: Where doubt remains as to extent of bene- fit received by Government in situation where no formal contract existed between agency and firm for construction services rendered Government, payment may be made on quantum meruit basis only to extent reasonable value of services performed can be established and appropriate con- tracting official ratifies actions which led firm to provide services. The Department of the Army's Corps of Engineers has requested our advance decision regarding the Government's liability for payment for work performed by the Markwell & Hartz Company (Markwell) without a formally executed contract. The Corps reports that Markwell was the low bidder under a 1979 solicitation for construction of a reinforced concrete masonry five-bay pumping station in Louisiana. For various reasons, the anticipated award to Markwell under the 1979 solicitation was delayed for several months. During this period of delay, favorable river conditions existed for clearing and grubbing the pumping station con- struction site and Markwell and its subcontractor began to clear the area. The Corps notes that although no con- tracf existed at the time, the work was done with the knowledge and consent of Corps personnel whose primary work responsibility would have been to supervise such work if it had been under contract. Subsequently, the Corps determined that no contract lawfully could be awar- ded under the 1979 solicitation because a Department of Labor wage determination included in the solicitation had expired. Consequently, Markwell was informed that it would not be awarded a contract; the 1979 solicitation c2/73 7 7

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