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B-210808 1 (1984-05-24)

handle is hein.gao/gaobadlsk0001 and id is 1 raw text is: TH TE COMPTROLLER GENERAL DECIBION VP THE UNITED STATES HWAHINGTON, O.C. 20548 FILE: B-210808 OATE: May 24, 1984 MATTER OF: McGraw-Hill Information Systems Company OIGEST: Contractor who provided unauthorized ser- vices at request of agency employee may be paid on quantum meruit basis because ser- vices constituted a permissible procure- ment, Government received and accepted their benefit, contractor acted in good faith, and amount claimed represents reasonable value of benefit received. The F. W. Dodge Division of the McGraw-Hill Information Systems Company (McGraw-Hill) requests that the General Accounting Office (GAO) authorize payment of a claim for $92,954.25 for services provided to the Minority Business Development Agency, U.S. Department of Commerce (MBDA). McGraw-Hill's claim is for information services provided to MBDA from January 1 to September 30, 1981, as an extension of a previous grant from the Department of Commerce, al- though there was neither a new grant nor a formal contract for the services provided during this period. To assist us in evaluating this matter we requested and have received a report from MBDA. Based on this information and our review, it is our conclusion that McGraw-Hill is entitled to a quantum meruit recovery of the amount claimed. FACTS The record in this case indicates that for several years prior to 1980, MBDA contracted with McGraw-Hill for construction data for use by minority businesses. However, in 1980, grant funding was used instead of a contract. In January 1980, McGraw-Hill received a grant of $138,837 (Grant No. 98-20-60110-00) to provide a complete information system to assist minority construction contractors for the period January 1 to December 30, 1980. In late 1980, the process for a 1-year renewal of the grant was begun. In February 1981, the proposed grant was submitted to the then newly formed Department of Commerce Financial Assistance Review Board. On March 24, 1981, the Review Board ruled that a contract, rather than a grant, should be used to fund the information system. At that point, MBDA began preparation of the paperwork necessary to support issuance of a contract. oC) qU-

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