Unauthorized commitments, avoiding costly out-of-pocket consequences

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SHEPPARD AIR FORCE BASE, Texas --  
Do you have $4,500 to spare? Neither does the government -- and when unauthorized commitments are made, individuals can be held accountable for the costs and may have to pay out-of-pocket for the purchase.

Some reasons people run into this situation is because they didn't have the authority to make the purchase, their organization did not have the money at the time of the commitment or extensive market research was not done before the action.

Unauthorized commitments occur when a government employee spends funds or directs actions while lacking the authority to do so. When a contractor acts on implied or apparent authority instead of a contracting officer's actual authority, the contractor is anti-deficient and that is illegal. The only people with authority to legally bind the government are warranted COs and properly trained government purchase card holders. If a person makes an unauthorized commitment and no funds were available at that time, the individual is liable to pay for it personally out-of-pocket.

Even something as simple as desk chair purchased for $100 may only be estimated by the government at a value of $70, for the same chair. Individuals could be held responsible for the difference in an unauthorized commitment situation even if the organization had more than enough funds to buy 100 chairs at $100. Fortunately, there is a process people with the appropriate authority can ratify unauthorized commitments.

One word to describe the ratification process is humiliating. This lengthy and tedious process attracts negative attention to the individual, their organization and the entire base. Those involved include the squadron and group commanders, the contracting squadron commander, potentially the wing commander and perhaps higher depending on the dollar value. If specific conditions were not met when the unauthorized commitment occurred, then it cannot be ratified. The only appeal authority for this situation is the government accountability office.

By following these rules, individuals can protect themselves and tax payer dollars:
 Don't make any verbal or written commitments to contractors if not authorized to do so.
 Don't pay for any items out-of-pocket and expect reimbursement.
 Don't make any changes outside the scope of the contract.
 Don't let a contractor use government equipment without proper authority and documentation.
 Individuals should not give the impression that they have been given authority to make purchase if they do not have that authority.
 Don't exceed GPC thresholds (supplies and equipment, $3,000; services, $2,500; construction, $2,000).

Work smarter, not harder; if unsure about any issue pertaining to government contractors or GPC purchases call the 82nd Contracting Squadron at (940) 676-2663 or (940) 676-5177. Unauthorized commitments are completely avoidable, and they can lead to an embarrassing and costly situation involving many people far up the chain of command. Either way, personal funds or tax dollars will pay for these mistakes nevertheless.

Regulations change often, and all contracts are different. What may be correct for one contract may not be appropriate for another. The 82nd CONS is filled with contracting officers and specialists to assist in finding the right answers. If unsure of any situation, ask questions to get clarification.