Overview
FAR 1.601 establishes that the legal authority to enter into contracts is vested in agency heads, who delegate this power to heads of contracting activities and specifically appointed contracting officers. It also provides the framework for agencies to share or transfer contracting responsibilities to one another.
Key Rules
- Source of Authority: Authority and responsibility for contracting reside with the agency head unless prohibited by law.
- Delegation: Agency heads may delegate broad management authority to Heads of Contracting Activities (HCAs).
- Exclusivity of Signature: Only individuals designated as Contracting Officers (COs) have the legal authority to enter into and sign contracts on behalf of the Government.
- Appointment: COs below the HCA level must be selected and appointed according to the specific criteria in FAR 1.603.
- Interagency Cooperation: Agency heads may mutually agree to transfer contracting functions to other agencies or establish joint acquisition offices.
Practical Implications
- Contractors must ensure they are dealing with a formally appointed Contracting Officer, as no other government official has the legal authority to bind the government or change contract terms.
- This section provides the legal basis for Interagency Acquisitions, allowing one agency to utilize the specialized contracting expertise or existing contract vehicles of another agency.