Contract awards or modifications valued at $100,000 or more must be reviewed and approved by the appropriate authority (see 2-41.5, Noncompetitive Contractual Actions and Purchase Plans below for information concerning reviews and approvals of these types of actions). When determining the appropriate level of review and approval authority, contracting officers must use their business judgment to estimate the probable total dollar value of the action or contract type, such as an indefinite delivery contract or ordering agreement, including any extensions such as options or renewals which may increase the value of the contract beyond the initial term or quantity.
Contract awards or modifications valued at $100,000 or more, but less than $10 million, must be reviewed and approved by a contracting officer who is a team leader or manager in the applicable purchasing organization (Category Management Center, Category Management Team, or Facilities Service Office) who has a sufficient amount of contracting authority to perform the action being reviewed. If no contracting officer at the purchasing organization has a sufficient amount of authority to perform the review and approval, the review and approval must be performed by the applicable Portfolio manager. Contract awards or modifications valued at $10 million or more must be reviewed and approved by the VP, SM.
No contract priced at or with a potential termination liability exceeding $1 million may be terminated without the prior approval of the VP, SM. In addition, no contract regardless of price which is considered sensitive or highly visible may be terminated without the VP, SM’s approval. Contracts with a potential termination liability of $100,000 or more, but not exceeding $1 million, must be reviewed and approved by the Portfolio manager before termination. For more information, see section 5-13, Terminate Contract.
