FAR Part 1 Questions

Question 1

Unauthorized Commitment

Answer 1

FAR 1.602

An agreement that is not binding solely because the Government representative who made it lacked the authority to enter into that agreement on behalf of the Government.

Question 2

What are the limitations on processing ratifications?

Answer 2

FAR 1.602-3(c)
1. Supplies or services have been provided to and accepted by the Government, or the Government otherwise has obtained or will obtain a benefit resulting from performance of the unauthorized commitment;

2. The ratifying official has the authority to enter into a contractual commitment;
3. The resulting contract would otherwise have been proper if made by an appropriate contracting officer;
4. The contracting officer reviewing the unauthorized commitment determines the price to be fair and reasonable;
5. The contracting officer recommends payment and legal counsel concurs in the recommendation, unless agency procedures expressly do not require such concurrence;
6. Funds are available and were available at the time the unauthorized commitment was made; and
   (7) The ratification is in accordance with any other limitations prescribed under agency procedures.

Question 3

What If You Do Not Ratify?

Answer 3

FAR 1.602-3(d)
Cases that are not ratifiable under this subsection may be subject to resolution as recommended by the Government Accountability Office under its claim procedure (GAO Policy and Procedures Manual for Guidance of Federal Agencies, Title 4, Chapter 2), or as authorized by FAR subpart 50.1. Legal advice should be obtained in these cases.

Question 4

Ratification vs. Constructive Change

Answer 4

A Ratification is the act of approving an unauthorized commitment by an official who has the authority to do so.

A Constructive Change occurs when a contractor performs work beyond that which is required by the contract without a formal change order (FAR 43.2), and it is perceived that such work was informally ordered by the Government or caused by the Government. The Government official had implied authority to make the change (think COR, PM, engineer/architect).

A Constructive Change is processed as a Request for Equitable Adjustment (REA) and could result in a claim if agreement is not reached.