FAR 1.601—General.
Plain-English Summary
FAR 1.601 explains who has legal authority to contract for the Government and how that authority is organized within an agency. It covers the agency head’s basic contracting authority, the ability to establish contracting activities, delegation of broad management authority to heads of contracting activities, the rule that only contracting officers may enter into and sign contracts on behalf of the Government, the special situation where some high-level officials are contracting officers by virtue of their positions, the appointment requirement for contracting officers below the head of a contracting activity, and the ability of agency heads to make interagency agreements to assign contracting functions or create joint or combined offices. In practice, this section is foundational because it ties together organizational authority and legal signature authority: if the wrong person signs, the Government may face an unauthorized commitment or other enforceability problems. It also matters for how agencies structure acquisition organizations, share acquisition workload, and establish joint procurement arrangements. For contractors, this section is a reminder to verify that the Government representative has actual contracting authority before relying on promises or directions. For contracting personnel, it defines the chain of authority and the limits on who can bind the Government.
Key Rules
Agency head holds authority
Unless another law says otherwise, the agency head has the authority and responsibility to contract for authorized supplies and services. This is the starting point for all agency contracting authority under the FAR.
Contracting activities may be established
The agency head may create contracting activities and delegate broad authority to manage contracting functions to heads of those activities. This allows agencies to organize acquisition operations and assign management responsibility within the agency.
Only contracting officers may bind Government
Only contracting officers may enter into and sign contracts on behalf of the Government. No other employee, even if involved in the acquisition, can legally bind the Government unless they have contracting officer authority.
Some officials are COs by position
In some agencies, a small number of senior officials are designated contracting officers solely because of their positions. This means their authority comes from the office they hold, not from a separate individual appointment.
Lower-level COs need appointment
Contracting officers below the level of a head of a contracting activity must be selected and appointed under FAR 1.603. This ensures their authority is formally granted and documented.
Agencies may share functions
Agency heads may mutually agree to assign contracting functions and responsibilities from one agency to another, or to create joint or combined offices to carry out acquisition functions. This supports interagency cooperation and shared acquisition structures.
Responsibilities
Agency Head
Holds the baseline authority and responsibility to contract for authorized supplies and services, unless another law prohibits it. May establish contracting activities, delegate broad management authority to heads of contracting activities, and mutually agree with other agency heads to transfer contracting functions or create joint or combined offices.
Head of Contracting Activity
May receive broad delegated authority from the agency head to manage the agency’s contracting functions. Oversees contracting operations within the scope of that delegation and ensures the contracting structure operates within legal and regulatory limits.
Contracting Officer
Has the exclusive authority to enter into and sign contracts on behalf of the Government. Must act within the scope of the warrant or appointment and, for those below the head of a contracting activity, must be selected and appointed under FAR 1.603.
High-Level Official Designated as Contracting Officer
May exercise contracting officer authority by virtue of the position held, where the agency has designated the office as a contracting officer position. Must still act within the limits of that position’s authority.
Agency Head of Another Agency
May mutually agree with another agency head to assign contracting functions and responsibilities or to establish joint or combined offices for acquisition functions and responsibilities.
Contractor
Must confirm that the Government representative has actual contracting officer authority before treating statements, promises, or directions as binding on the Government.
Practical Implications
A contract is only binding if signed by a contracting officer with actual authority, so contractors should never assume a program manager, COR, or other official can commit the Government.
Agencies must maintain clear organizational delegations and appointment records; unclear authority can create unauthorized commitments, protest risk, or internal control problems.
The section supports shared-service and interagency acquisition models, but those arrangements must be based on mutual agreement between agency heads and properly structured authority.
High-level officials may have contracting officer authority by position, but that does not eliminate the need to verify the scope of their authority for a specific action.
When authority is delegated or shared, the practical risk is confusion over who can approve, sign, or direct work, so both sides should confirm the chain of authority early in the acquisition process.
Official Regulatory Text
(a) Unless specifically prohibited by another provision of law, authority and responsibility to contract for authorized supplies and services are vested in the agency head. The agency head may establish contracting activities and delegate broad authority to manage the agency’s contracting functions to heads of such contracting activities. Contracts may be entered into and signed on behalf of the Government only by contracting officers. In some agencies, a relatively small number of high level officials are designated contracting officers solely by virtue of their positions. Contracting officers below the level of a head of a contracting activity shall be selected and appointed under 1.603 . (b) Agency heads may mutually agree to- (1) Assign contracting functions and responsibilities from one agency to another; and (2) Create joint or combined offices to exercise acquisition functions and responsibilities.