Purchasing System Compliance – Unauthorized Commitments
Unratified Purchase Errors. In business-speak we call them procedural missteps, broken processes, or deviations from procedures. Colloquially, we use phrases like “cart before the horse” or “cut across the infield” and “blew it this time”. DCMA calls them “Unauthorized Commitments”.
If you are a GovCon subject to the DFARS Purchasing System rules, you most likely have Unauthorized Commitments from time to time. FAR 1.602-3 defines an Unauthorized Commitment as an agreement that is not binding solely because the representative who made it lacked the authority to enter into that agreement. The most common example is a project manager directing a seller to get to work before authorization from the purchasing department. Sound familiar?