Unauthorized Commitments

1. Unauthorized Commitments

2. What is it? 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. (FAR 1.602-3(a) and GPD #2)

3. Learning Objectives Recognize an unauthorized commitment Identify examples of unauthorized commitments Understand what happens when unauthorized commitments occur Changes in the approval process Know the steps to take to avoid unauthorized commitments

4. Some examples���.. Program office orders supplies/services before a contractual/assistance document is issued. Program Office directs contractor/grantee to deviate from the contract. CO or GO exceeds authority or purchase cardholder exceeds authority.

5. Some examples for assistance�. PAO signs a grant assuming warrant authority from prior post carried over Grants Officer signs a grant that exceeds the dollar limit of the warrant

6. What should I do??? Stop performance or delivery immediately. Determine if supplies/services have been provided to and accepted by the Government. Challenge questionable actions. Begin �ratification� process.

7. Who can �ratify�? Contracts: Under $1000, HCA Over $1000, The Procurement Executive Assistance: Any amount must be approved by the Procurement Executive

8. What conditions must be met? Supplies/services have been provided and accepted. Government has obtained or will obtain a benefit (for contract). Ratifying official has the authority to enter into a contractual commitment. Resulting contract/grant would otherwise have been proper.

9. What conditions must be met? Price must be fair and reasonable. CO recommends payment. Funds are available and were available. Ratification is in accordance with any other limitations.

10. What kind of documentation? Person who made the unauthorized commitment must: submit all records/documents provide complete written, signed statement of the facts why normal acquisition procedures weren�t followed why and how the vendor was selected list of other sources considered description of work or products statement regarding the status of performance

11. What kind of documentation? estimated or agreed to price (subject to CO price or cost analysis) certified funding citations statement justifying a sole source procurement statement of why they should not be liable & if they were ever responsible for another unauthorized commitment

12. What kind of documentation? Person who committed the action must be tracked down (even if no longer present or available) to sign unless dead, dismissed or retired. An officer from the responsible office must provide required documentation. Cognizant management official must provide a statement explaining how they will preclude future actions. New Executive Office approval required. A statement is required on the number of unauthorized commitments/actions processed in the responsible office in the last three calendar years.

13. What kind of documentation? CO must prepare and execute a recommendation to the ratifying official.

14. Before sending to A/OPE The package is complete The dollars add up The request goes through the appropriate HCA There are sufficient funds Provide actual for services that have been performedor goods delivered Obtain Signatures

15. Findings for Ratification Standard format and checklist adopted by A/OPE Includes CO Determination � Recommendation of disciplinary action? Signature of Executive Officer Includes Ratification Authority Signature

16. Steps to Avoid Unauthorized Commitments Have trained CORs/CO/GO A CO COR letter of responsibility Copy of the COR letter provided to Contractor Communicate with requiring activities

17. Objectives Summary Defined unauthorized commitment Discussed examples of unauthorized commitments Identified the unauthorized commitment process/changes Highlighted steps to avoid unauthorized commitments

18. QUESTIONS