Overview
FAR Subpart 1.6 establishes the regulatory framework for the delegation of federal procurement authority from agency heads to specific individuals. It defines the roles, responsibilities, and limitations of Contracting Officers (COs) and Contracting Officer’s Representatives (CORs), ensuring that government contracts are executed legally, ethically, and by qualified personnel.
Key Rules
- Exclusive Authority: Only designated Contracting Officers have the legal authority to enter into, administer, or terminate contracts. Other government officials cannot bind the government unless specifically authorized.
- Written Appointment: COs must be appointed via an SF 1402 (Certificate of Appointment), which must explicitly state any limitations on their authority (e.g., warrant dollar limits).
- Funding Requirement: A CO cannot enter into a contract unless they have ensured that sufficient funds are available for obligation.
- Ratification Policy: Unauthorized commitments (agreements made by someone without authority) are not automatically binding. They can only be "ratified" (made legal after the fact) if specific criteria are met, such as the government receiving a benefit and the price being fair and reasonable.
- COR Limitations: CORs assist in technical monitoring but are strictly prohibited from making any changes that affect price, quality, quantity, delivery, or other contract terms.
Responsibilities
- Agency Head: Vested with the primary authority to contract; responsible for establishing procurement career management programs and delegating authority to the Heads of Contracting Activities (HCA).
- Contracting Officer (CO):
- Ensures compliance with laws, executive orders, and regulations.
- Safeguards the interests of the United States.
- Ensures contractors receive fair and equitable treatment.
- Designates CORs in writing for all non-firm-fixed-price contracts.
- Contracting Officer’s Representative (COR):
- Must be a government employee (with rare exceptions).
- Must maintain required certifications (FAC-COR or DoD equivalent).
- Responsible for technical monitoring and maintaining a contract file.
- Note: May be held personally liable for unauthorized acts.
- Ratifying Official: Usually the HCA or a high-level designee; responsible for reviewing and potentially approving unauthorized commitments.
Practical Implications
- "The Power of the Pen": For contractors, this subpart serves as a warning: never take direction that changes the scope of work or cost from a Program Manager or technical lead unless they have a CO warrant. If a contractor performs work based on an unauthorized person's direction, they risk non-payment because the agreement is "unauthorized" under FAR 1.602-3.
- Warrant Limits: Public and agency personnel should always verify a CO’s warrant limit. If a CO signs a $2M contract but only has a $1M warrant, the contract may be invalid.
- Audit Trails: The requirement for CORs to maintain specific contract files (including their designation letter and action documentation) is critical during audits or disputes to prove the government provided proper oversight.
- Professionalization: The emphasis on selection criteria (education, experience, and training) under 1.603-2 highlights that federal contracting is a specialized professional field, not merely an administrative function, requiring significant business acumen and judgment.