An Unauthorized Commitment Is An Agreement That Is Not Binding Solely

(2) The official ratifies is authorized to enter into a contractual commitment; Any unauthorized obligations must be immediately notified to the OC. Note that many potential unauthorized commitments will not be detected until the contractor files an invoice and the discrepancy is reviewed. The borough government requires all suppliers to have an authorized purchasing instrument (for example. B, order, fixed-term contract, framework purchase contract, etc.) before providing goods or services. The conclusion oral or subject to authorisation of contracts is prohibited. If the measure is found to be unfair, the package is forwarded to the lawyer`s office through the head of the contracting agency (HCA) for further implementation and execution. Note that contractors may demand legal action against the person who is responsible for the unauthorized obligation if the payment cannot be requested by the government. 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. Ratification, as used in this subsection, involves the approval of an unauthorized obligation by an official authorized to do so. 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. 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. Contractors should be aware of the impact of performing work under unauthorized obligations. Only a CO is legally authorized to contract the government and it is possible that any work performed outside the volume of work without CO authorization and a subsequent modification of the contract could result in a loss for a contractor. The inability to recover the costs of additional work can be devastating for most contractors. The maintenance of the support of a professional advisor should therefore be taken seriously in order to adequately and rigorously protect the interests of a contractor. Excell Consulting International, Inc.`s experts have experience with contract agents and unauthorized commitments and are willing to support and evaluate your company`s position and provide valuable and inexpensive advice for your business.

Do not ask contractors to work before properly modifying the contract or contract, perform outside the scope of the contract, or make changes that would make you liable for an unauthorized obligation.