# AFFARS MP5301.602-3

#### Mandatory Procedure

MP5301.602-3
Processing Ratifications

#### August 2007

5301.602-3 Procedure For Processing Ratifications (IAW FAR 1.602-3):

1. The contracting officer initiates an investigation by requesting the office(s) involved to provide documentation and evidence concerning the unauthorized commitment.

2. The commander of the organization in which the unauthorized commitment occurred ensures the following are provided to the contracting officer within 30 days of the request:

a. A report on the circumstances surrounding the unauthorized commitment, to include a statement on corrective actions taken to prevent a recurrence of the event and a description of disciplinary action taken, or an explanation why no action was taken.

b. A signed statement from the individual who made the unauthorized commitment detailing the incident. If a statement is unavailable, the commander explains in the report the reason for not providing the individual's statement.

c. Relevant documentation and records, (e.g., evidence the supplies or services were received, accepted, and were of benefit to the government, contractor correspondence and invoice, funds availability statement, etc.).

3. The contracting officer analyzes the documentation and, if ratification is appropriate, prepares a file. The file contains the following:

a. Statement of the contracting officer that summarizes the case and addresses each of the elements contained in FAR 1.602-3(c).

b. Legal opinion.

c. Contractor's invoice with relevant correspondence.

d. The report by the organization in which the unauthorized commitment occurred--prepared in accordance with paragraph 2 above. Include any attachments to the report.

4. The ratification statement reads substantially as follows:

> “Pursuant to the authority vested in me by AFFARS 5301.602-3(b)(3), I hereby ratify the act of (name, title, grade, and organization), who on or about (date) authorized (company name) to (commitment). The dollar value of the transaction is (dollar amount). Ratification is deemed to be in the best interest of the government and is within the authority and limitations of FAR 1.6 and supplements thereto.”

5. For ratification of unauthorized commitments equal to or greater than $30,000 of appropriated funds, the contracting officer shall forward the file through the wing commander for review by the SCO; for SMC and AFMC, forward the file through the wing commander for review by the SCCO. For organizations that do not have a wing commander, forward the file to the Center technology/functional director for review. The contracting officer should include words substantially as follows:

> "Attached is the ratification file concerning the unauthorized contracting act of (name) for your review. If you concur ratification of this act is appropriate, this file will be forwarded to the Head of the Contracting Activity (HCA) or designee (if delegated) for final approval."

6. When an unauthorized commitment occurs within a tenant organization and the tenant organization has its own contracting authority, the ratification shall be processed through the tenant’s chain of command. For tenant organizations without contracting authority, the host command shall investigate, process, and, if appropriate, approve the ratification. The host command shall provide copies of the ratification to the tenant’s parent organization.

7. After execution of the ratification statement by the appropriate authority, the contracting officer processes the ratification action. A copy of the ratification statement is included in the contract file. A copy of the contract is placed in the ratification file. Files are maintained in the contracting office in accordance with AFMAN 37-123. A copy of the signed contract action executing the approved ratification shall be sent to the SCO.

8. Nonappropriated Fund (NAF). NAF policies and procedures are prescribed in AFI 64-301.

9. Organizations may use the ratification template when preparing a ratification.