Overview
This section defines the scope of authority and the specific responsibilities of Contracting Officers (COs), while also establishing the framework for appointing Contracting Officer’s Representatives (CORs) and the legal process for ratifying unauthorized commitments. It serves as the primary regulation ensuring that only authorized individuals bind the Government to financial and legal obligations.
Key Rules
- Delegated Authority: Contracting officers may bind the Government only to the extent of the specific authority delegated to them in writing; these limits must be available to the public and agency personnel.
- Legal Compliance: No contract shall be entered into unless the CO ensures all requirements of law, executive orders, and regulations are met, and that sufficient funds are available.
- COR Appointments: A COR must be designated in writing for all contracts other than firm-fixed-price (unless the CO performs the duties personally). The COR must be a qualified Government employee and has no authority to alter the contract's price, quality, or terms.
- Ratification Standards: Unauthorized commitments (agreements made by personnel lacking authority) can only be ratified if the Government received a benefit, the price is fair and reasonable, and the resulting contract would have been otherwise legal.
- Non-Delegable Ratification: Authority to ratify unauthorized commitments resides with the head of the contracting activity and cannot be delegated below the level of the chief of the contracting office.
Practical Implications
- Contractor Risk: Contractors must verify the warrant limits of the CO and the specific limitations of the COR; instructions from unauthorized personnel (such as technical leads) that change the scope of work may result in non-payment unless the arduous ratification process is successful.
- Administrative Burden: The ratification process is intentionally restrictive to discourage informal agreements; it requires legal concurrence and a formal determination, often leading to significant delays and administrative scrutiny for the requiring activity.