4.103
Contract clause
Contracting officers must include the "Approval of Contract" clause (52.204-1) in solicitations and contracts when required by their agency's procedures.
Overview
FAR 4.103 requires contracting officers to include the clause at 52.204-1, "Approval of Contract," in solicitations and contracts when agency procedures mandate its use. This clause is not automatically included in every contract but is contingent upon specific agency requirements. The purpose is to ensure that contracts are not considered binding until the appropriate agency approval is obtained, providing an additional layer of oversight and compliance in the contract execution process.
Key Rules
- Inclusion of Clause 52.204-1
- Contracting officers must insert the "Approval of Contract" clause in solicitations and contracts if their agency's procedures require it.
- Agency-Driven Requirement
- The use of this clause is determined by internal agency procedures, not by a universal FAR mandate.
Responsibilities
- Contracting Officers: Must be familiar with their agency's procedures to determine if clause 52.204-1 is required and ensure its inclusion when applicable.
- Contractors: Should review solicitations and contracts for the presence of this clause and understand its implications for contract approval and enforceability.
- Agencies: Must establish clear procedures regarding when the clause is required and communicate these requirements to contracting officers.
Practical Implications
- This section exists to prevent unauthorized contract execution and ensure proper agency oversight.
- It impacts daily contracting by requiring an additional compliance check before finalizing contracts.
- Common pitfalls include failing to include the clause when required or misunderstanding when agency procedures necessitate its use.