Can a Contracting Officer be forced to sign a contract that he/she knows has violated regulations and policy? Also, can a Contracting Officer be forced to remove a MFR from the contracting file? Is it okay for a Contracting Officer to place a MFR in the contract file cataloging events, if he/she inherits a contract from another Contracting Officer?
A contracting officer cannot be forced to sign a contract he or she knows violates regulations and policy. As a matter of fact, a contracting officer doesn't have the authority to enter into a contract which does so. See FAR 1.602-1 which explains the contracting officer's authority. In particular, subparagraph (b) states, "No contract shall be entered into unless the contracting officer ensures that all requirements of law, executive orders, regulations, and all other-applicable procedures, including clearance and approvals, have been met."
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That said, you may want to consult with your counsel for legal advice before proceeding.