Common use of Unauthorized Commitments Clause in Contracts

Unauthorized Commitments. When a USAID official, who does not have the authority to do so, acts in a way that leads a recipient or potential recipient acting in good faith to believe that USAID has committed to make a specific award; change the amount of an existing award; or, revise an existing award budget, program description, or any of the terms and conditions of the award, the official has made an unauthorized commitment. It is against U.S. Government and USAID policy to enter into unauthorized commitments. ● Evidence that the grant would otherwise have been proper, if made by an appropriate AO; ● The AO reviewing the unauthorized commitment must determine the cost to be reasonable; ● The provided program has furthered USAID’s objectives; ● The findings of facts essential to the situation, arranged chronologically with cross references to supporting enclosures; ● The nature of the unauthorized commitment and funds citation; ● Funds are available and were also available at the time the unauthorized commitment was made; ● The recommended disposition; and ● A written statement from the person who made the unauthorized commitment. This statement must detail how the mistake occurred,