32.706-3
Clause for unenforceability of unauthorized obligations
Always include the 52.232-39 clause in every solicitation and contract to prevent enforcement of unauthorized government obligations.
Overview
FAR 32.706-3 requires contracting officers to include the clause at 52.232-39, "Unenforceability of Unauthorized Obligations," in all solicitations and contracts. This clause ensures that contractors are not bound by any obligations or commitments made by government personnel that exceed their authorized authority. The purpose is to protect both the government and contractors from unauthorized commitments that are not legally enforceable under the contract.
Key Rules
- Mandatory Clause Inclusion
- The clause at 52.232-39 must be inserted in every solicitation and contract issued by the government.
- Protection Against Unauthorized Commitments
- The clause clarifies that only authorized government officials can bind the government to contractual obligations.
Responsibilities
- Contracting Officers: Must ensure the clause is included in all solicitations and contracts.
- Contractors: Should review contracts to confirm the clause is present and understand its implications.
- Agencies: Must oversee compliance with this requirement to prevent unauthorized obligations.
Practical Implications
- This requirement exists to prevent disputes over unauthorized commitments and to clarify the limits of government authority in contracting.
- Contractors should be vigilant about commitments made by government personnel and ensure only authorized actions are recognized.
- Failure to include this clause could expose both parties to legal and financial risks.