(b)(3) HCAs may delegate authority to ratify unauthorized commitments of $100,000 or less to no lower than the Deputy/Assistant Commander for Contracts and may delegate authority to ratify unauthorized commitments of $50,000 or less to a level no lower than the CCO.
(c)(7) HCAs shall establish procedures for the ratification of unauthorized commitments to include documentation from the individual making the unauthorized commitment, a report and endorsement from the Commanding Officer of the Activity concerned to the contracting officer, preparation of a determination and findings addressing the FAR 1.602-3(c)(1) through (7) limitations, review by the appropriate counsel of the Office of General Counsel, a recommendation by the contracting officer as to ratification, signature of the determination and findings by the ratification official, and execution of the appropriate contractual documents. Comptroller review is required for ratifications in excess of $1,000,000 where the use of expired funds is anticipated.
(S-90) DON Guidance.
The following is provided as guidance for HCAs in establishing procedures to ratify unauthorized commitments. In establishing procedures, minimizing the need to ratify unauthorized commitments should be considered as a goal.
(a) The individual making the unauthorized commitment should forward to the activity’s Commanding Officer, or civilian equivalent, documentation concerning the transaction, to include:
(1) A signed statement describing-
(i) the circumstances surrounding the unauthorized commitment;
(ii) why normal procurement procedures were not followed;
(iii) what bona fide need of the Government necessitated the commitment;
(iv) whether any benefit was received and its value;
(v) how and when it was identified as an unauthorized commitment;
(vi) attempts to resolve the unauthorized commitment prior to requesting authorization (such as returning merchandise); and
(vii) any other pertinent facts.
(2) All orders, invoices, or other documentary evidence of the transaction.
(b) If the Commanding Officer, or civilian equivalent, concurs that the commitment should be ratified, then the Commanding Officer, or civilian equivalent, should forward the documentation described above in a report to the contracting officer with an endorsement that:
(1) Verifies the accuracy and completeness of the documentation;
(2) Describes any disciplinary action taken and the measures taken to prevent a recurrence of unauthorized commitments; and
(3) Provides a complete purchase description and funding for the ratifying contract.
(c) If the statement required by (a)(1) is unavailable, the Commanding Officer, or civilian equivalent, should explain in the report the reason the individual’s statement is not available and insure that all information required under (a)(1) is provided to the extent possible.
(d) The contracting officer should:
(1) Review the documentation and endorsement provided;
(2) Determine the adequacy of the facts and documentation, obtaining any additional material required;
(3) Prepare a determination and findings for signature by the ratifying official addressing the limitations in FAR 1.602-3(c)(l) through (7);
(4) Prepare a recommendation to the ratifying official;
(5) Prepare appropriate contractual documents; and
(6) Submit the contract and supporting documents to the appropriate counsel of the Office of the General Counsel for an opinion as to form and legality and for any additional pertinent comment or advice.
(e) Comptroller review is recommended for all ratifications.
(f) The ratifying official to whom authority has been delegated pursuant to NMCARS 5201.602-3(b)(3) should review the file, and if ratification is proper, sign the determination and findings.
(g) Records. HCAs should ensure that a record of all ratification actions is maintained. This record should include the identity of the contracting office performing the ratification, the dollar value of the ratification action, and a copy of the required determination and findings.
(h) Reports.
(1) A copy of all ratifications of unauthorized commitments must be submitted to the Senior Contracting Leader within the HCA.
(2) Within 30 days following the end of each fiscal quarter (30 October, 30 January, 30 April, 30 July) HCAs should provide a report via e-mail to [email protected] with the
subject “Ratifications by COMMAND NAME during the X Quarter FYXX” using the format at Annex 4. That information includes:
(a) Ratification Amount
(b) Name of Contracting Officer Recommending Ratification
(c) Name of Ratifying Official
(d) Date of Ratification approval
(e) Description of Supplies/Services bought and from whom
(f) Brief description of the circumstances of the purchase, i.e. why normal procurement procedures were not followed
5201.603 Selection, appointment, and termination of appointment.
