FAR 1.602-3—Ratification of unauthorized commitments.
Plain-English Summary
FAR 1.602-3 explains how the Government may approve an unauthorized commitment after the fact, and when it may not. It defines two core terms—"ratification" and "unauthorized commitment"—and sets the policy that agencies should prevent these situations rather than rely on cleanup procedures. The section identifies who may ratify, how that authority may be delegated, and when agencies should use ratification instead of sending the matter to the Government Accountability Office. It also distinguishes unauthorized commitments that are really contract claims, which belong under the Contract Disputes statute and FAR subpart 33.2, from those that may be ratified under this section. Finally, it lists the mandatory conditions for ratification, including acceptance or benefit to the Government, proper authority, a fair and reasonable price, legal concurrence in most cases, available funds, and compliance with agency procedures, and it notes that nonratifiable cases may have to be handled through GAO claim procedures or FAR subpart 50.1 with legal advice.
Key Rules
Ratification means after-the-fact approval
Ratification is the approval of an unauthorized commitment by an official who has authority to bind the Government. An unauthorized commitment is only unauthorized because the Government representative lacked authority, not because the agreement was otherwise invalid for some other reason.
Prevent unauthorized commitments
Agencies are expected to take positive steps to prevent unauthorized commitments from happening in the first place. The ratification process is a remedy, not a routine workaround, and it must not be used in a way that encourages personnel to make commitments without authority.
Only authorized officials may ratify
The head of the contracting activity may ratify unless a higher-level official is designated by the agency. This authority may be delegated under agency procedures, but never below the chief of the contracting office level.
Use ratification instead of GAO referral when appropriate
Agencies should process qualifying unauthorized commitments under FAR 1.602-3 rather than sending them to the Government Accountability Office for resolution. However, if the matter is actually a claim subject to the Contract Disputes statute, it must be handled under FAR subpart 33.2 instead.
Seven conditions must be met
Ratification is allowed only if all required conditions are satisfied: the Government received and accepted the supplies or services, or otherwise obtained or will obtain a benefit; the ratifying official has contracting authority; the contract would have been proper if made by an appropriate contracting officer; the price is fair and reasonable; the contracting officer recommends payment and legal counsel concurs unless agency rules waive that requirement; funds were available when the commitment was made; and any agency-specific limits are met.
Nonratifiable cases need other remedies
If the commitment cannot be ratified under this section, it may still be resolved through GAO claim procedures or, where authorized, under FAR subpart 50.1. Legal advice should be obtained before taking action in these cases.
Responsibilities
Agency
Prevent unauthorized commitments to the maximum extent possible, establish internal procedures for handling ratification, and ensure ratification is not used to normalize or encourage unauthorized actions by personnel.
Head of the Contracting Activity
Serve as the default ratifying authority unless the agency designates a higher official, and ensure ratification decisions stay within the limits of the regulation and agency procedures.
Higher-Level Official
If designated by the agency, exercise ratification authority in place of the head of the contracting activity, subject to the same regulatory limitations.
Chief of the Contracting Office
May receive delegated ratification authority, but only as far down as this level; cannot further delegate below this point under FAR 1.602-3.
Contracting Officer
Review the unauthorized commitment, determine whether the price is fair and reasonable, recommend payment when appropriate, and help decide whether the matter is ratifiable or must be handled another way.
Legal Counsel
Concur in the recommendation for payment unless agency procedures expressly waive concurrence, and provide legal advice for nonratifiable cases or cases that may need GAO or FAR subpart 50.1 handling.
Ratifying Official
Approve the unauthorized commitment only if all regulatory conditions are met and the official has authority to enter into the contractual commitment.
Government Accountability Office
May resolve certain nonratifiable matters through its claim procedures when ratification is not available, though agencies are directed to use ratification authority instead of referring qualifying cases to GAO.
Contractor
Provide the supplies or services only as directed by authorized Government personnel and understand that performance requested by an unauthorized Government representative may not be binding until properly ratified.
Practical Implications
This section is a safeguard for the Government, not a substitute for proper contracting authority. Contractors should not assume they will be paid simply because a Government employee asked for work; the commitment must still be ratified by an authorized official.
The biggest practical issue is whether the Government actually received a benefit and whether funds were available at the time. If either element is missing, ratification may be impossible even if the work was useful.
Price review matters. A fair and reasonable determination is required, so unsupported invoices, inflated rates, or unclear scope can delay or defeat ratification.
Legal and procedural compliance is critical. Missing legal concurrence, agency-specific approvals, or authority limits can make an otherwise valid-looking case nonratifiable.
If the issue is really a contract claim rather than a simple unauthorized commitment, it must go through the disputes process instead of ratification. Misclassifying the matter can waste time and create avoidable legal risk.
Official Regulatory Text
(a) Definitions . Ratification , as used in this subsection, means the act of approving an unauthorized commitment by an official who has the authority to do so. Unauthorized commitment , as used in this subsection, means 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. (b) Policy. (1) Agencies should take positive action to preclude, to the maximum extent possible, the need for ratification actions. Although procedures are provided in this section for use in those cases where the ratification of an unauthorized commitment is necessary, these procedures may not be used in a manner that encourages such commitments being made by Government personnel. (2) Subject to the limitations in paragraph (c) of this subsection, the head of the contracting activity, unless a higher level official is designated by the agency, may ratify an unauthorized commitment. (3) The ratification authority in paragraph (b)(2) of this subsection may be delegated in accordance with agency procedures, but in no case shall the authority be delegated below the level of chief of the contracting office. (4) Agencies should process unauthorized commitments using the ratification authority of this subsection instead of referring such actions to the Government Accountability Office for resolution. (See 1.602-3 (d).) (5) Unauthorized commitments that would involve claims subject to resolution under 41 U.S.C. chapter 71 , Contract Disputes, should be processed in accordance with subpart 33.2 , Disputes and Appeals. (c) Limitations . The authority in paragraph (b)(2) of this subsection may be exercised only when- (1) Supplies or services have been provided to and accepted by the Government, or the Government otherwise has obtained or will obtain a benefit resulting from performance of the unauthorized commitment; (2) The ratifying official has the authority to enter into a contractual commitment; (3) The resulting contract would otherwise have been proper if made by an appropriate contracting officer; (4) The contracting officer reviewing the unauthorized commitment determines the price to be fair and reasonable; (5) The contracting officer recommends payment and legal counsel concurs in the recommendation, unless agency procedures expressly do not require such concurrence; (6) Funds are available and were available at the time the unauthorized commitment was made; and (7) The ratification is in accordance with any other limitations prescribed under agency procedures. (d) Nonratifiable commitments . Cases that are not ratifiable under this subsection may be subject to resolution as recommended by the Government Accountability Office under its claim procedure (GAO Policy and Procedures Manual for Guidance of Federal Agencies, Title 4, Chapter 2), or as authorized by FAR subpart 50.1 . Legal advice should be obtained in these cases.