Acquisitions

Ratifications

What is an Unauthorized Commitment?

An unauthorized commitment is an agreement, either verbal or in writing, that is not binding because a person without specific contracting authority entered into it.

Only warranted contracting officers with contracting authority can make commitments to contractors, companies, or individuals or sign or verbally issue orders/requests for them to perform work.

Only those with specific contracting authority should sign contractual instruments or modifications, even when dollars are not involved, or sign memorandums or letters or issue verbal orders which appear to have the effect of contractually binding the Government, including hotel/motel and software license agreements.

An agency employee who makes an unauthorized commitment may be subject to personal liability.

What is a Ratification?

A ratification is the act of approving and paying for supplies or services provided to and accepted by the government as a result of an unauthorized commitment.   It is issued by an official who has the authority to do so.   Only ARS Procurement Assistance Officers, the Facilities Division Director, and Acquisition and Property Division Branch Chiefs have ratification authority up to $100,000.   The Director, Acquisition and Property Division, has ratification authority for actions $100,000 and over.

Ratification requests should be sent to your supporting procurement office.

Procedures to Follow When Ratifying an Unauthorized Commitment

The individual initiating the unauthorized commitment should:  

• Submit a signed statement that answers each of the following questions:

• What bonafide Government requirement necessitated the commitment?

• Why was a Contracting Officer not used?

• Why was the vendor selected (provide a list of sources and prices considered)?

• What work was performed or what products were furnished?

• What was the agreed upon or estimated price, and what was the rationale for determining it fair and reasonable?

• Were funds available to pay the commitment when the commitment was made?

• Has performance begun?

• If there are any other pertinent facts?   What are they?

• Was this a sole source action over $2,500?   If so, provide a valid sole source justification.

• Route the above statement through the individual's Department director or appropriate senior supervisor. 

The individual's Department Director or appropriate senior supervisor should:

• Verify the accuracy and completeness of the documentation;

• Include a description of measures taken to prevent a recurrence of unauthorized commitments; and,

• Forward to the Procurement Office.

The Procurement Office determines whether a ratification is proper.

• Approved actions are ratified and processed for final action.

• Disapproved actions are returned to the initiating individual; the employee may be required to pay the vendor.

Updated: 10/10/2004