52.204-1
Approval of Contract
A contract containing this clause is not legally binding until it receives written approval from a designated agency official.
Overview
FAR 52.204-1, "Approval of Contract," establishes that certain contracts require written approval from a designated agency official before they become binding. The clause is inserted into contracts as directed by FAR 4.103 and serves as a safeguard to ensure that only authorized personnel can finalize contractual obligations on behalf of the government. Until the specified official provides written approval, neither party is legally bound by the contract terms. This requirement is typically used in situations where agency policy or regulation mandates an additional level of review or authorization before contract execution.
Key Rules
- Written Approval Requirement
- The contract is not effective or binding until a designated agency official provides written approval.
- Designation of Approving Official
- The contract must specify the title of the official whose approval is required.
Responsibilities
- Contracting Officers: Must ensure the clause is included when required and that the contract is not executed until written approval is obtained.
- Contractors: Must recognize that the contract is not binding until the specified approval is received and should not begin performance prematurely.
- Agencies: Must designate the appropriate official and ensure compliance with internal approval processes.
Practical Implications
- This clause protects both the government and contractors by clarifying when contractual obligations begin.
- Contractors should avoid incurring costs or starting work before receiving formal approval.
- Failure to obtain required approval can result in unenforceable contracts or unauthorized commitments.