Overview
FAR 4.101 establishes the exclusive authority of Contracting Officers to bind the United States government to a contract and outlines the procedural requirements for executing the signature block.
Key Rules
- Exclusive Authority: Only individuals designated as Contracting Officers (COs) have the legal authority to sign contracts on behalf of the United States.
- Identification: The CO’s name and official title must be clearly typed, stamped, or printed on the contract to ensure transparency and accountability.
- Order of Execution: While not strictly mandatory in every scenario, the standard procedure is for the contractor to sign the contract before the Contracting Officer signs.
- Verification Duty: The CO is responsible for verifying that the person signing on behalf of the contractor possesses the legal authority to bind their company to the agreement.
Practical Implications
- Prevents Unauthorized Commitments: This rule ensures that only authorized personnel commit government funds, protecting the government from legal obligations made by unauthorized employees.
- Due Diligence Requirement: In practice, COs must perform due diligence (often referencing corporate resolutions or the System for Award Management) to confirm the contractor's representative has the power to sign, reducing the risk of a "void" contract due to lack of authority.