FAR 1.603-3—Appointment.
Plain-English Summary
FAR 1.603-3 explains how contracting authority is formally granted and documented. It covers two related topics: the written appointment of contracting officers on SF 1402, Certificate of Appointment, including any limits on their authority and the requirement to keep appointment files for un-terminated appointments; and the separate, encouraged delegation of micro-purchase authority to certain government personnel who will actually use the supplies or services being bought. In practice, this section is about ensuring that only properly authorized individuals bind the Government, that the scope of their authority is clear, and that agencies maintain an auditable record of who has authority to act. It also recognizes that micro-purchases can be handled more efficiently by end users, but still requires written delegation under agency procedures. For contractors, this section matters because it helps determine whether the person placing an order or signing a commitment has valid authority. For contracting offices and agencies, it is a control measure that supports accountability, compliance, and procurement integrity.
Key Rules
COs need written appointment
Contracting officers must be appointed in writing on SF 1402, Certificate of Appointment. The appointment is the formal source of their authority to act for the Government.
Authority limits must be stated
The SF 1402 must state any limits on the contracting officer’s authority, except for limits already imposed by law or regulation. This makes the scope of the appointment clear to both the CO and others who rely on the appointment.
Appointment files must be retained
Appointing officials must keep files containing copies of all appointments that have not been terminated. This creates an official record of who currently holds contracting authority.
Micro-purchase authority may be delegated
Agency heads are encouraged to delegate micro-purchase authority to employees of an executive agency or members of the Armed Forces who will use the supplies or services being purchased. The policy is intended to streamline small purchases close to the point of need.
Micro-purchase delegates need written designation
Individuals given micro-purchase authority do not need an SF 1402, but they must still be appointed in writing under agency procedures. The written delegation is required even though the formal contracting officer certificate is not.
Responsibilities
Agency Heads
Encourage and, where appropriate, delegate micro-purchase authority to eligible government personnel who will use the supplies or services being purchased. Ensure the delegation is made in writing under agency procedures.
Appointing Officials
Issue written contracting officer appointments on SF 1402, include any authority limitations, and maintain files of all appointments that remain in effect and have not been terminated.
Contracting Officers
Operate only within the scope of authority granted in their written appointment and comply with any stated limitations as well as applicable law and regulation.
Agency Personnel with Micro-Purchase Authority
Use delegated micro-purchase authority only if properly appointed in writing under agency procedures and only for purchases within the scope of that delegation.
Contractors
Verify that the government representative has apparent and actual authority before relying on commitments, especially for orders, modifications, or other actions that could bind the Government.
Practical Implications
A valid written appointment is critical because the Government is generally not bound by actions taken by someone without proper authority. Contractors should not assume authority based on title, email signature, or past practice alone.
The SF 1402 should be checked for any stated limits, such as dollar thresholds, commodity restrictions, or geographic/program limits. Acting outside those limits can invalidate the action or require ratification.
Agencies need good records management: if appointment files are incomplete or outdated, it becomes harder to prove who had authority at a given time and to support audits, disputes, or internal reviews.
Micro-purchase authority can speed up buying, but it is still a controlled delegation. A written agency appointment is required, so informal permission or verbal approval is not enough.
For contracting officers and supervisors, the main pitfall is assuming authority is broader than the appointment says. For contractors, the main pitfall is relying on an unauthorized person and later discovering the Government employee lacked authority to commit funds or make a binding change.
Official Regulatory Text
(a) Contracting officers shall be appointed in writing on an SF 1402 , Certificate of Appointment, which shall state any limitations on the scope of authority to be exercised, other than limitations contained in applicable law or regulation. Appointing officials shall maintain files containing copies of all appointments that have not been terminated. (b) Agency heads are encouraged to delegate micro-purchase authority to individuals who are employees of an executive agency or members of the Armed Forces of the United States who will be using the supplies or services being purchased. Individuals delegated this authority are not required to be appointed on an SF 1402 , but shall be appointed in writing in accordance with agency procedures.