Unauthorized Agreement

Deliveries or services are ordered by a person who is not mentioned on a purchase card or who is mentioned in a contract or framework contract. Note: A funding document is not a contractual document. (1) Agencies should take positive steps to avoid the need for a ratification procedure as much as possible. While this section provides for procedures for use in cases where ratification of an unassed obligation is necessary, these procedures should not be applied in a manner that promotes commitments made by government staff. In addition, the OC will need a purchase request and adequate funding for the action, including certification that funding was available at the time of the unauthorized obligation. The OC may also contact the contractor to determine whether the contractor has “reasonably” relied on the obvious power of service delivery. Contractors who comply with unauthorized obligations do so at their own risk. You are not entitled to a consideration (money) unless the unauthorized commitment is ratified. Payment is therefore significantly delayed, if not impossible, if the measure is not ratified or if the costs are not recognized. There are serious consequences for all leaders of the unauthorized engagement.

Unauthorized commitments may result in personal liability for the person who made the commitment. Questions about unauthorized undertakings may be directed to Susan Catington, U.S. Department of State`s Competition Lawyer (703) 516-1693. It is an agreement that is not binding just because the government representative who did it did not have the power to conclude it on behalf of the government. 2. Subject to limitations in paragraph (c) of this subsection, the head of the contract activity may, unless the Agency appoints a public servant at a higher level, ratify an unauthorized obligation. Staff responsible for unauthorized obligations are required to provide detailed written explanations of their actions and may be subject to disciplinary action, particularly where the offences are egregious and/or repeated. An unauthorized obligation is defined in FAR 1.602-3 (a) as an agreement that is not binding solely because the government representative who did so was not authorized to enter into the agreement on behalf of the government. The only people who can hire the government are contract agents and purchase card holders who act within their delegated responsibilities. Illegal obligations are contrary to federal law, federal regulations, government standards of conduct for federal public servants and Uspats regulations. (4) Agencies should deal with unauthorized obligations using the ratification authority of this subsection, rather than referring these measures to the Accountability Office.

(see 1.602-3 (d).) The procedure in which designated persons convert an unauthorized obligation into a legal contract is called ratification. In accordance with the Ministry of State Acquisition (DOSAR), the head of the contracting activity was empowered to ratify unauthorized commitments of up to $1,000.