§ 401.671-3 - Limitations on exercise of authority.

(a) The authority in 401.671-2 above may be exercised only if—

(1) The work under the unauthorized commitment was needed by the Government and was for the Government's benefit;

(2) The ratifying official could have granted authority to enter into the commitment at the time it was made and still has the power to do so;

(3) The resulting contract would otherwise be proper. As used herein, the phrase “otherwise proper” means that a ratification of an unauthorized commitment can be made only if there occurred no violation of any substantive legal requirement, e.g., there can be no ratification unless the use of other than full and open competition can be justified and approved; a determination made that the contractor is not debarred or otherwise ineligible for award; the organizational conflict of interest reviews and determinations, if required, are completed; and all other substantive legal requirements have been met;

(4) Supplies or services being provided are acceptable to the Government;

(5) The ratifying official determines the price to be fair and reasonable;

(6) The ratifying official recommends payment; and

(7) Funds are available and were available at the time the unauthorized commitment was made.

(b) Any unauthorized commitment that would involve claims subject to resolution under the Contract Disputes Act of 1978 shall be processed in accordance with FAR Subpart 33.2.