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B-204063 1 (1981-08-12)

handle is hein.gao/gaobadjqn0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISION OF THE UNITED STATES 4. WASHINGTON, 0. C. 20548 tNITE~ FILE: B-204063 DATE: August 12, 1981 MATTER OF: National Guard Bureau n . DIGEST: Despite absence of formally executed contract, bill for servicing copy machine under expired equipment maintenance agreement, using prices previously determined reasonable under expired contract, may be paid, if otherwise proper and correct, since Government received benefit of services and ratification may be implied from facts. The Department of the Army and Air Force National Guard Bureau (Army) : New Castle, Delaware, has requested an advance decision on behalf of its Signaj Command Unit (unit) at Dover, Delaware, regarding the LPropriety of paying an invoice for tbh-erepair of a--P-i-t-e-y-B.owe-s- (,P-tney)t copy machineby a Pitney service representative. The Army authorized the unit to contract for an equipment maintenance agreement with Pitney for fiscal year 1979 to cover repairs to the machine. Although it was apparently the unit's belief that the service con- tract would be automatically renewed each year for the duration of the machine's use, no request by the unit was made for renewal and the Army did not renew the maintenance contract for fiscal year 1980. Without knowing this, the unit arranged for needed service and repair by a Pitney service representative in the summer of 1980. Pitney billed for $156 under the expired 1979 agreement for the repairs. Although no formally executed contract existed between the unit and Pitney, in appropriate circum- stances, payment may be made for services rendered on a guantum meruit basis (the reasonable value of work or labor). 40 Comp. Gen. 447, 451 (1961). Recognition of a right to payment on that basis requires a showing that the Government received a benefit and ratification by an authorized contracting official of the Government.

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