construction and leasing) assigned to the activity;

ensure

(2) Establishing adequate controls to compliance with applicable laws, regulations, procedures, and good management practices;

(3) Recommending highly qualified, well trained candidates to the Assistant Administrator for Acquisition Policy for designation as contracting officers with the limitations prescribed by the warrant boards and based on a vaild organizational need;

(4) Monitoring the performance of warranted contracting officers with regard to actions that may require suspension or termination of the appointment and recommending to the Assistant Administrator for Acquisition Policy the suspension or termination of appointment of contracting officers; and

(5) Establishing and approving acquisition/contracting training plans to satisfy COWP training requirements and ensuring the availability of required training funds for implementation of these plans.

[49 FR 10792, Mar. 22, 1984, as amended at 50 FR 36081, Sept. 5, 1985]

501.601-70 Responsibility for administra

tion of Contracting Officer Warrant Program (COWP).

(a) Regional offices. (1) Regional Administrator. The regional Administrator or his/her deputy, as the recommending official, shall recommend to the designating official the appointment or termination of appointment of contracting officers.

(2) Contracting Officer Warrant Board. The Contracting Officer Warrant Board shall receive, evaluate and process to the Office of Project Control and Oversight (OPCO) requests for appointment of contracting officers. (See 501.603-72.)

(3) Office of Project Control and Oversight. The regional administration of the contracting Officer Warrant Program has been assigned to the Office of Project Control and Oversight (OPCO). OPCO shall:

(i) Administer the Contracting Officer Warrant Program (COWP);

(ii) Ensure that the warrant board evaluates and recommends acceptance

or rejection of applicants according to the requirements of the COWP;

(iii) Recommend appropriate additional training and the level of warrant certifications as required by the warrant board;

(iv) Issue procedures with approval of the Office of Acquisition Policy for the operation of the program at the regional level;

(v) Recommend program changes to the Office of Acquisition Policy;

(vi) Analyze proposed regional courses and training materials for procurement personnel and recommend them to the Office of Acquisition Policy, as appropriate, for fulfilling the requirements of COWP; and

(vii) Maintain detailed training records for each contracting officer.

(viii) Ensure that a GSA Form 19, Designation of Authorized Representative, is submitted to the Regional Finance Division when each contracting officer warrant is issued and that the Regional Finance Division is notified promptly when a contracting officers authority changes, is suspended or terminated.

(b) Central Office. The head of a contracting activity, as recommending official, shall recommend to the designating official the appointment or termination of appointment of contracting officers. The head of a contracting activity, shall also act as the warrant board.

501.602 Contracting officers.

501.602-1 Authority.

Contracting officers designated by name on Standard Form 1402, Certificates of Appointment, are authorized to exercise contracting officer authority, subject to all requirements and limitations set forth in the certificate of appointment (501.603-3(b)) and existing delegations of authority. Contracting officers shall exercise reasonable care, skill and judgement in all actions.

[51 FR 45892, Dec. 23, 1986]

501.602-2 Responsibilities.

(a) GSA revolving funds. Unless otherwise notified, contracting officers may assume that sufficient funds are

available for purchases payable from GSA revolving funds upon the receipt of a requisition signed by an authorized individual citing funds. Requisitions for requirement contracts which provide for a guaranteed minimum must cite funds in an amount adequate to cover the guaranteed minimum quantities.

(b) GSA funds, other than revolving funds. (1) The receipt of a requisition signed by an authorized individual shall be considered as evidence that the amount of funds cited is available for purchases payable from GSA funds other than revolving funds. Clearance as to the availability of additional funds shall be obtained from the requisitioning activity prior to issuance of a contract or purchase order when the purchase exceeds (by 10 percent or $50, whichever is greater) the amount cited on the purchase requisition.

(2) In cases where a requisition is not used, e.g., leases of real property, the contracting officer shall take the necessary action to ensure funds are available before executing their contract.

(c) Other Federal agencies' funds. On purchases for direct delivery to Federal agencies other than GSA, the receipt of a properly signed/approved purchase request shall be considered as sufficient evidence that funds are available. Where, however, the agency's purchase request indicates that a specific dollar amount has been set aside for the acquisition, as in the case of a Project Implementation Order/ Commodities (PIO/C) from the Agency for International Development, the buying activity shall not exceed the fund limitation except to the extent authorized in supply support agreements. When the funds stated on the purchase request appear to be or are insufficient to cover all applicable costs for the acquisition, transportation, export surcharge, and any other expense involved in the delivery of material to designated consignees, additional funds shall be requested and received from the requiring agency before the acquisition is completed by the activity indicated below:

(1) When requirements are submitted by agencies directly to a contracting division in the Central Office (whether the procurement is actually made by the appropriate contracting division in the Central office or subsequently transmitted, in whole or in part, to one or more regions for acquisition) the request for additional funds shall be made by the appropriate Central Office contracting division.

(2) When requirements are submitted to a regional contracting division (whether acquisition is made by that region, forwarded in whole or in part to another regional contracting division or to a contracting division in the Central Office) the request for additional funds shall be made by the order processing and control activity in the region initially receiving the requirement.

(a) Authority. Subject to the limitations and in accordance with the procedures prescribed in FAR 1.602-3, contracting officers may ratify contractual commitments made by employees who do not have the requisite authority to enter into contracts on the Government's behalf if the head of the contracting activity (HCA) has approved the ratification action. The authority to approve ratification actions may not be redelegated.

(b) Procedures. (1) Generally, the Government is not bound by agreements or contractual commitments made by persons to whom contracting authority has not been delegated. Such unauthorized acts may be in violation of the Federal Property and Administrative Services Act, other Federal laws, the FAR, the GSAR, and good acquisition practice. Therefore, such unauthorized contractual commitments should be considered as serious employee misconduct and consideration given to initiating disciplinary action. In any instances where suspected irregularities may involve fraud against the Government, or any type of misconduct which might be punishable as a criminal offense, either the employee's supervisor or the contracting officer should immediately report

the matter to the Office of the Inspector General with a request for a complete investigation.

(2) The individual who made the unauthorized commitment shall furnish the appropriate contracting director all records and documents concerning the commitment and a complete written statement of facts, including, but not limited to, a statement as to why normal acquisition procedures were not followed, why the contractor was selected and a list of other sources considered, description of work or products, estimated or agreed contract price, citation of appropriation available, and a statement regarding the status of the performance. Under exceptional circumstances, such as when the person who made the unauthorized commitment is no longer available to attest to the circumstances of the unauthorized commitment, the contracting director may waive the requirement that the responsible employee initiate and document the request for ratification, provided that a written determination is made stating that a commitment was in fact made by an employee who shall be identified in the determination.

(3) The appropriate contracting director will assign the request for ratification action to an individual contracting officer for processing. The contracting officer assigned the action will be responsible for preparing a summary statement of facts addressing the limitations in FAR 1.602-3(c) and making a recommendation as to whether the transaction should be ratified and stating the reasons therefore. Advice against ratification should include a recommendation for other appropriate disposition. When ratification is not permissible due to legal improprieties in the procurement, the contracting officer may recommend that payment be made for services rendered on a quantum merit basis (the reasonable value of work or labor) or for goods furnished on a quantum valebant basis (the reasonable value of goods sold and delivered) provided there is a showing that the Government has received a benefit. (See also FAR 1.602-3(d)).

(4) The request for ratification, the information required by paragraph

(b)(3) above, and a recommendation for corrective action to preclude recurrence, must be forwarded, through appropriate channels, to the HCA for consideration.

(5) The HCA, upon receipt and review of the complete file, may approve the ratification if determined to be in the Government's best interest, or direct other disposition as appropriate. Acquisitions which have been approved for ratification shall be forwarded to the appropriate contracting officer for issuance of the necessary contractural documents. If the request for ratification is not justified, the HCA shall return the request without approval and provide an explanation for the decision not to approve ratification.

(6) Each HCA shall maintain a separate file containing a copy of each request for approval to ratify an unauthorized commitment. This file shall be made available for review by the Office of Acquisition Policy and the Inspector General.

[53 FR 7366, Mar. 8, 1988]

EFFECTIVE DATE NOTE: Section 501.602-3, temporarily added at 53 FR 7366, Mar. 8, 1988, expires March 7, 1989.

501.603 Selection, appointment, and termination of appointment.

(a) General. This section establishes the uniform policy and procedures for warranting contracting officers (CO). The objective of the COWP is to appoint as contracting officers only those officials who are fully qualified to obligate the Government to the expenditure of public funds for the acquisition of property or services, based on a valid organizational need and appropriate workload. In order to provide for signatures on obligating documents to be checked by the appropriate Finance Division, a GSA Form 19, Designation of Authorized Representative, must be submitted to the appropriate Finance Division upon receipt of a Standard Form 1402, Certificate of Appointment. In the event of a change, suspension, or termination of a contracting officer's appointment, the appropriate Finance Division must be promptly notified. No obligation or authorization for the expenditure of

funds will be accepted by the Finance Division unless a GSA Form 19 is on file.

(b) Applicability. (1) The GSA Contracting Officer Warrant Program applies to all services, staff offices, and regions, except for those contracting officers appointed pursuant to the Inspector General Act (Pub. L. 95-452).

(2) A warrant is not required for:

(i) Individual purchases under $150, regardless of the method of procurement;

(ii) Any imprest fund transactions less than $150 (purchases of $150 or more must be approved in advance by a contracting officer unless the transaction is otherwise exempt from the warrant program by this GSAR

501.603(b)(2));

(iii) The signing of training authorizations for public course offerings;

(iv) The signing of travel related documents;

(v) The authorizations or orders for printing and duplicating services;

(vi) The ordering of supplies from GSA store stock via a Standard Form 344, FEDSTRIP;

(vii) The signing of Government Bills of Lading;

(viii) The processing/procuring of a telephone service authorization or a communication service authorization issued to regulated/public utility common carriers. Emergency communications coordinators shall be authorized in their warrants to procure emergency communications equipment and services during Presidentially declared emergency or disasters;

(ix) The ordering by inventory managers of stock replenishment under established source contracts that are machine loaded. Current GSA Form 19 signature cards must be on file in the appropriate Finance Division;

(x) Delivery orders (machine generated) for motor vehicle procurements that are written against definite quantity contracts need not be signed as the contract is the obligating document in this case;

(xi) Entering into a Memorandum of Agreement with another Federal agency and to authorize the transfer of funds to that agency for services rendered; and

(xii) The authorization of interagency transfers of funds via a GSA 2957, Work Authorization.

(c) Definitions. The following definitions apply to the material in this section:

(1) "Recommending official" means the head of the contracting activity who has been authorized to recommend candidates for designation as contracting officers to the designating official subject to the requirements and recommendations of the warrant boards and this 501.603. A Regional Administrator may redelegate this authority to his/her deputy.

(2) "Designating official" means the Administrator or Associate Administrator for Acquisition Policy, who is authorized to appoint contracting officers in GSA.

(3) "GSA Contracting Officer Representative" (COR) means a Government employee, designated in writing by the CO, by name and position title, who is authorized to take action for the CO with specified limitations. A CO may not authorize a COR to issue change orders or otherwise modify a contract unless the COR is a warranted CO.

(4) "Delivery order" means placing an order for supplies and/or services against an already established contract under the terms and conditions of the established contract.

(5) "Warrant Limitations" means limitations which, in addition to the FAR, GSAR, laws, Executive Orders, GSA Orders, and other applicable regulations, are imposed on the authority of contracting officers either by delegation or actions of the designating official, and which will be set forth in the Certificate of Appointment (Standard Form 1402). Warrant limitations may include but are not limited to requirements for prior reviews, approvals, and other controls.

(6) "GSA established source contracts" means contracts established by GSA and other Federal agencies when GSA is required by regulation to use those contracts as Government supply sources. (See Part 8 of the FAR.)

[49 FR 10792, Mar. 22, 1984, as amended at 50 FR 2285, Jan. 16, 1985; 51 45892, Dec. 23, 1986]

(a) Contracting officers (CO's) shall be designated only in those instances in which a valid organizational need for warranted personnel can be demonstrated. Factors to be considered in assessing the need for a contracting officer designation include volume of actions, complexity of work, and organizational structure.

(b) To certify organizational needs and ensure that the candidate meets minimum CO qualifications, a completed GSA Form 3410, Request for Appointment, shall be signed by the candidate's immediate supervisor and submitted to the appropriate warrant board along with a statement of fact. The Request for Appointment shall be accompanied by GSA Form 3409, Personal Qualifications Statement for Appointment as a Contracting Officer, prepared and signed by the candidate.

(c) Warrant boards will evaluate candidates for CO warrants based on supervisory recommendations, experience, education, training, business acumen, judgement, character, ethics, and reputation. Warrant boards may establish additional qualification requirements, as appropriate. Minimum qualifications of contracting officers (purchasing contracting officers (PCO's) and administrative contracting officers (ACO's)) are based on a combination of training and experience with consideration of relevant academic credit or degrees earned.

(d) The following warrant levels are equated with dollar value of individual transactions (e.g., contract, modification, supplemental agreement, etc.) and not the aggregate contract value. Basic-up to and including $25,000 per open market purchase or the maximum order limitation for orders placed against established contracts;

Intermediate-up to and including $100,000; Senior-unlimited.

(1) Knowledge and skill. Written statements of fact must be presented by supervisors of CO candidates to the warrant board, covering the knowledge and abilities of candidates and their specific level of skill which are appropriate to the activity in the following areas:

(i) Contract Placement.

(ii) Contract Administration.
(iii) Contract Termination.
(iv) Real Property Leasing.
(v) Sales.

(2) Experience requirements for contracting officer candidates. Warrant boards shall consider contracting experience in terms of basic, intermediate, and senior levels.

(i) Basic experience. Candidates must have a least one year of current (within last 5 years) experience with progressive work assignments and orientation.

(ii) Intermediate experience. Candidates must have at least two years of current (within last 5 years) experience with progressive assignments leading to broader technical ability.

(iii) Senior experience. Candidates must have at least three years of current (within last 5 years) experience with

progressive assignments and broad technical ability.

(3) Mandatory training requirements for contracting officer candidates. A candidate must complete the minimum core training required for the warrant levels described below. To qualify for an intermediate level warrant, a candidate must complete the basic and intermediate level training. A candidate must complete the basic, intermediate, and senior level training in order to qualify for a senior level warrant. Supervisors are responsible for providing their employees with advice and assistance necessary to complete this required training. Mandatory training includes the following general topics as a minimum:

(i) Basic level. (Does not apply to realty leasing and sales personnel.) (A) Small Purchases and Federal supply schedules-40 hours,

(B) Basic Acquisition-40 hours, (C) Contract Administration for Program Personnel-40 hours. (Applicable to GSA Buildings Managers only.)