more than two officials within a contracting activity, as appropriate, may be designated to issue acquisition letters.

(c) Acquisition letters must be coordinated with appropriate offices including Acquisition Policy, Counsel, and the Inspector General. Proposed procedures affecting the operation of the small business program must be coordinated with the Office of Small and Disadvantaged Business Utilization

(AU).

(d) Acquisition letters must be identified by a number assigned by the issuing activity. The number should begin with the correspondence symbol of the issuing office, followed by the last two digits of the calendar year in which it is issued and be numbered consecutively beginning with 1. For example, the number of the first letter issued by the Commissioner, Public Buildings Service, in calendar year 1989 will be P-89-1.

(e) The body of the acquisition letter should contain the following paragraphs, as appropriate:

(1) Purpose.

(2) Background.

(3) Effective date.

(4) Termination date.

(5) Cancellation.

(6) Applicability (offices to which acquisition letter is applicable).

(7) Reference to regulations (FAR or GSAR), handbooks, or orders.

(8) Instructions/procedures.

(f) The issuing office is responsible for distributing its acquisition letters to affected contracting activities, regional Acquisition Management Staffs (RAMS), the Office of Acquisition Policy, appropriate Central Office contracting activities, Associate General Counsels, Regional Counsels, Directives and Correspondence Management Branch in Central Office, and Information Management Branches in the regions. In Region 3, it is the Administrative Operations Branch.

(g) Each issuing office must report on acquisition letters issued and canceled on a quarterly basis so that the Office of Acquisition Policy can issue a consolidated index of all acquisition letters issued or canceled. The index will be distributed to GSA contracting activities.

Subpart 501.4-Deviations From the FAR and GSAR

501.402 Policy.

(a) In order to maintain maximum uniformity, deviations from the FAR and the GSAR must be kept to a mini

mum.

(b) A contracting activity may deviate from a regulatory provision which implements a statutory requirement provided the nature of the deviation does not violate the underlying statute.

(c) Deviations must not be used to defeat the FAR and GSAR approval requirements.

501.403 Individual deviations.

Individual deviations from the GSAR or the FAR must be approved by the head of the contracting activity. A copy of the deviation justification and approval must be furnished to the Office of Acquisition Policy (VP).

501.404 Class deviations.

(a) Class deviations from the FAR and GSAR must be approved by the Associate Administrator for Acquisition Policy (V).

(b) Class deviations from the GSAR will expire in 12 months if not extended. They may be rescinded earlier without prejudice to any action previously taken.

(c) A request for a class deviation must be supported by statements that fully disclose the need for and the nature of the deviation.

[54 FR 26486, June 23, 1989, as amended at 56 FR 15288, Apr. 16, 1991]

(a) Using the imprest fund; (b) Signing training authorizations for public course offerings;

(c) Signing travel documents;

(d) Ordering printing and duplicating services;

(e) Ordering supplies on Standard Form 344 or other FEDSTRIP forms; (f) Signing Government Bills of Lading;

(g) Signing machine-loaded orders against established contracts for supplies to replenish warehouse stock;

(h) Signing machine-generated delivery orders against definite quantity contracts for motor vehicles;

(i) Signing memoranda of agreement with other Federal agencies (see ADM 5400.12A and PBS 5400.5B);

(j) Authorizing interagency transfers of funds.

(k) Using the Government telephone systems for commercial long distance and local service and/or approving payments for such services;

(1) Using the Federal Supply Service (FSS) nationwide contract for express small package transportation services and/or approving payments for such services; and

(m) Submitting a Standard Form 145, Telephone Service Request, to the Information Resources Management Service.

[54 FR 26486, June 23, 1989, as amended at 56 FR 15288, Apr. 16, 1991]

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 such funds. Requisitions for indefinite delivery contracts which provide for a guaranteed minimum must cite funds adequate to cover the guaranteed minimum quantities.

(b) GSA funds, other than revolving funds. (1) A requisition signed by an authorized individual may be considered as evidence that funds cited are available for purchases payable from GSA funds other than revolving funds. A certification that additional funds are available must be obtained from the requisitioning activity before awarding a contract or purchase order when the

purchase exceeds (by 10 percent or $50, whichever is greater) the dollar amount of funds cited on the purchase requisition.

(2) When a requisition is not used, e.g., lease of real property, the contracting officer must ensure funds are available before awarding the contract.

(c) Other Federal agencies' funds. For purchases for direct delivery to Federal agencies other than GSA, the receipt of a properly signed/approved purchase request is 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 must 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 costs for the acquisition, transportation, export surcharge, and any other expense involved in the delivery of material to designated consignees, additional funds must be obtained from the requiring agency before the acquisition is completed as indicated below:

(1) When requirements are submitted by agencies directly to a contracting division in the Central Office (regardless of where the procurement is actually made), the request for additional funds should be made by the Central Office contracting division.

(2) When requirements are submitted to a regional contracting division (regardless of where the acquisition is made), the request for additional funds will be made by the order processing and control activity in the region initially receiving the requirement.

[54 FR 26486, June 23, 1989, as amended at 56 FR 15288, Apr. 16, 1991]

501.602-3 Ratification of unauthorized

commitments.

(a) Authority. Under FAR 1.602-3, contracting officers may ratify unauthorized contractual commitments if the HCA approves the ratification action. The HCA may not redelegate this authority.

(b) Procedures. (1) Generally, the Government is not bound by commitments made by persons who do not have contracting authority. Such unauthorized acts may violate laws or regulations. Therefore, unauthorized commitments should be considered as serious employee misconduct and consideration given to initiating disciplinary action. If suspected irregularities may involve fraud against the Government, or any type of misconduct that might be punishable as a criminal offense, either the employee's supervisor or the contracting officer must 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-upon 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 must be identified in the determination.

(3) The contracting director will assign the request to a contracting officer for processing. The contracting officer shall prepare a summary statement of facts addressing the limitations in FAR 1.602-3(c) recommending whether or not the transaction should be ratified. Advice against express 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 meruit 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 FAR 1.602-3(d).)

(4) The request for ratification, the information required by paragraph (b)(3) of this section and a recommendation for corrective action to preclude recurrence, must be forwarded, through appropriate channels to the HCA for consideration.

(5) The HCA shall approve the ratification in writing, or direct other disposition as appropriate. Acquisitions approved for ratification are returned to the contracting officer for issuance of the necessary contractual documents. If the request for ratification is not justified, the HCA will return the request without approval and provide a written explanation for the decision not to approve ratification.

ment for Appointment as a Contracting Officer, prepared and signed by the candidate.

(b) Heads of contracting activities (HCAs) or designee(s) (division director or higher level official) may delegate authority by memorandum to the employee to make purchases not to exceed $500, and issue Standard Form 145, Telephone Service Request (TSR), for tariff services on, or in conjunction with, existing telephone systems, to regulated local exchange telephone companies. Designees may not redelegate the authority to appoint contracting officers and may not serve as contracting officers by virtue of the designation by the HCA. Memoranda delegating authority to issue TSRS must state that the authority does not apply to Rate Stabilization Plans or orders for new Centrex service on a site level basis, except for new locations that require interim, temporary, small or emergency service. Requests for delegation of contracting authority may be made by branch chiefs or equivalent or by the Zonal IRMS Program Support Branch Chiefs with respect to TSRS. Requests may be made by memorandum and must include the candidate's name, title, and organizational location; a brief explanation of the need for authority; a brief description of the individual's qualifications; and a certification that the candidate has received the training required by 501.603-70(h)(1) (i) or (x) as applicable.

(c) In order to be appointed candidates must either have achieved certification under GSA Order, GSA Occupational Certification Program (OAD 9410.1) or meet experience and training requirements as provided in 501.603-70. Candidates who do not meet this requirement may nonetheless be eligible for an interim appointment. Candidates for interim appointment at the intermediate warrant level must complete all the basic level courses and three intermediate level courses before the appointing official will consider a request for appointment. Candidates for interim appointment at the unlimited warrant level must complete all the basic level courses and complete five intermediate level courses before the appointing official will consider a request for appointment. These restric

tions do not apply to realty leasing or sales warrants. In order to maintain an interim warrant, the warrant holder must complete at least two required but untaken, courses each year following appointment until all the requirements are met. Exceptions may be granted for good cause.

(d) The Associate Administrator for Acquisition Policy appoints contracting officers at the basic, intermediate or unlimited level using the Standard Form 1402, Certificate of Appointment. The original Certificate of Appointment (SF-1402) will be provided to the appointed contracting officer and should be displayed at the contracting officer's duty station. A copy of the Certificate of Appointment will be forwarded to the appropriate HCA or Chairperson of the COWP Board and to the Office of Finance.

[56 FR 15288, Apr. 16, 1991]

501.603-4 Termination.

(a) The appointing official may terminate the appointment of a contracting officer at any time.

(b) If the Associate Administrator for Acquisition Policy appointed the contracting officer, the HCA shall notify the Associate Administrator by letter when a contracting officer

(1) Resigns;

(2) Transfers to another agency or is reassigned to another office within GSA;

(3) Is terminated, or otherwise disciplined for malfeasance or incompetence; or

(4) No longer has a need for the appointment.

(c) HCA may suspend the appointment of a contracting officer including those appointed by the Acquisition Administrator, where there is reason to believe that the contracting officer has failed to exercise sound business judgment or for other improprieties in carrying out the responsibilities incident to serving as a contracting officer. The suspension shall be for a temporary period, pending the Associate Administrator's determination whether the appointment should be terminated. The HCA shall promptly notify the Associate Administrator of the action and provide a recommendation for termi

nation or continuation of the appointment.

[56 FR 15288, Apr. 16, 1991]

501.603-70 Contracting officer warrant program (COWP).

(a) General. The purpose of the COWP is to provide for the appointment of qualified individuals as contracting officers in accordance with organizational requirements for contracting authority. Factors to be considered in determining the number of contracting officers appropriate for a given organization include volume of actions, complexity of work, and organizational structures.

(b) Applicability. The program applies to all contracting officers except those appointed under the Inspector General Act (Pub. L. 95-452).

(c) Definitions.

Appointing official means the Associate Administrator for Acquisition Policy, or for purchases of $500 or less and of telephone service from regulated local exchange telephone companies for tariff service on or in conjunction with existing telephone systems, the head of the contracting activity (HCAs) or designee(s) (division level or higher).

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

Delivery order means an order for supplies and/or services placed against an already established contract under the terms and conditions of the contract.

Established source contract means a contract established by GSA or another Federal agency that authorizes or requires GSA to place orders against the contract. (See Part 8 of the FAR.) 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, and 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.

(d) Responsibilities—(1) Associate Administrator for Acquisition Policy. As the Procurement Executive for GSA, the Associate Administrator for Acquisition Policy is responsible for providing management direction of the procurement system, maintaining a procurement career management program to ensure a professional workforce, and appointing contracting officers in accordance with FAR 1.603 and 501.603.

(2) Heads of contracting activities. The heads of contracting activities (HCA) (see 502.1) or designee(s) (division director or higher level official) are responsible for delegating authority to make purchases that do not exceed $500 and to issue Standard Form 145, Telephone Service Request (TSR), for tariff services on or in conjunction with existing telephone systems to regulated local exchange telephone companies. HCAS are also responsible for conducting effective and efficient acquisition programs. HCAs must establish training plans for contracting personnel and budget for funds to implement such plans; monitor the performance of contracting officers; and establish controls to ensure compliance with applicable laws, regulations, procedures and the dictates of management practice.

(3) Contracting Officer Warrants Boards. The HCA appoints the Chairperson of the COWP Board. The Chairperson appoints the board members and receives, evaluates, and processes requests for appointment of contracting officers at the basic, intermediate and senior levels under the COWP. The warrant board consists of supervisory personnel at the SES or GM/GS-14/15 levels representing contracting offices within the contracting activity and, in an advisory capacity, representatives of the Office of Personnel and the Office of General Counsel.

(4) Regional Acquisition Management Staff (RAMS). The RAMS shall assist the HCA in the administration of the COWP, issue procedures for the operation of the program at the regional level, recommend program changes when necessary, analyze proposed regional courses and training material and recommend them for fulfilling the