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  • Question

    If an individual makes an unauthorized commitment (UAC), and the UAC is deemed unratifiable, and the individual making the UAC is deemed liable for paying the amount of the UAC, does the individual pay the contractor directly, or does the Government pay the contractor, with the individual reimbursing the Government? (Or does it depend on the agency's procedures?)


    This response is based on the information provided.  We suggest you discuss with your contracting and finance team, program manager and/or legal department as appropriate.


    The FAR says little on the subject

    "FAR 1-602-3(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."


    DFARS is silent on the subject.  As the FAR states, the best course of action is to seek legal advice.


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