58 STAT.] 78TH CONG., 2D SESS. - CH. 358-JULY 1, 1944 that in its opinion the facts do not support the belief that the settle- ment was induced by fraud, the contracting agency, by set-off or otherwise, may withhold, from amounts owing to the war contractor by the United States under such settlement or otherwise, the amount of the settlement, or the portion thereof, which, in the opinion of the Comptroller General as stated in his certificate, was affected by the fraud. In any such case the Department of Justice shall take such action as it deems appropriate to recover payments made to such war contractor. The General Accounting Office shall not suspend credit to any disbursing officer on any disbursements made by him under such settlement in the absence of fraud on his part. (c) The Comptroller General may investigate the settlements com- pleted by each contracting agency for the purpose of reporting to the Congress from time to time on- (1) whether the settlement methods and procedures employed by such agency are of a kind and type designed to result in expe- ditious and fair settlements in accordance with and subject to the provisions of this Act and the orders and regulations of the Director; (2) whether such methods and procedures are followed by such agency with care and efficiency; and (3) whether such methods and procedures adequately protect the interest of the Government. If in any such report the Comptroller General shall find that the settlement methods and procedures fail to meet the foregoing stand- ards, he shall make suggestions and recommendations to such agency for the improvement of such methods and procedures and to the Con- gress for any additional legislation needed to carry out the policies of this Act. At least thirty days before filing any such report with the Congress, the Comptroller General shall deliver a copy thereof to the agency concerned and the Director, and shall forward to the Congress together with such report any comments of such agency with respect thereto. (d) The jurisdiction of the Comptroller General of the United States shall not be affected by this Act except to the extent necessary to give effect to the specific provisions thereof. DEFECTIVE, INFORMAL, AND QUASI CONTRACTS SEC. 17. (a) Where any person has arranged to furnish or furnished to a contracting agency or to a war contractor any materials, services or facilities related to the prosecution of the war, without a formal contract, relying in good faith upon the apparent authority of an officer or agent of a contracting agency, written or oral instructions, or any other request to proceed from a contracting agency, the con- tracting agency shall pay such person fair compensation therefor. (b) Whenever any formal or technical defect or omission in any prime contract, or in any grant of authority to an officer or agent of a contracting agency who ordered any materials, services, and facilities might invalidate the contract or commitment, the contracting agenc (1) shall not take advantage of such defect or omission; (2) shall amend, confirm, or ratify such contract or commitment without consid- eration in order to cure such defect or omission; and (3) shall make a fair settlement of any obligation thereby created or incurred by such agency, whether expressed or implied,. in fact or in law, or in the nature of an implied or quasi contract. (c) Where a contracting agency fails to settle by agreement any claim asserted under this section, the dispute shall be subject to the provisions of section 13 of this Act. 665 Recovery of pay. ments. Investigations of settlements; reports to Congress. Suggestions for im- proved methods and procedures. Jurisdiction of Comptroller General. Materials, etc., fur nished without formal omntret. Formal or technical defects or omissions in prime contracts, etc. Failure to sett by Atreet, A* V.O.M
�
