Policy Set Forth in Federal Procurement Regulations Concerning the Ratification of Unauthorized Contracts

Uniform procedures for handling implied contracts by contracting officials within a civilian agency or military department should be included in the Federal Acquisition Regulations. Proper documentation of the ratification of implied contracts will minimize possible abuse of this procedure. Authority to handle implied contracts will result in a decrease in the number of claims submitted to GAO by agencies for final determination. Review of such claims causes delays in payments to contractors. To insure proper use of the authority, administrative settlement should be taken only in those cases where such action is clearly justified.