Contract execution is a critical step in the federal acquisition process, marking the official agreement between the government and the contractor. The Federal Acquisition Regulation (FAR) provides detailed guidance on the policies and procedures for contract execution to ensure consistency, transparency, and legal enforceability.  

Key FAR Requirements for Contract Execution:

1. Authority to Sign:

• Contracting Officer’s Signature (FAR 4.101): Only warranted Contracting Officers (COs) have the authority to sign contracts on behalf of the United States. Their name and official title must be clearly indicated.  
• Contractor’s Signature (FAR 4.102): The contractor must be a legally authorized representative with the authority to bind the company. This may involve individuals, partnerships, corporations, or other legal entities, each with specific requirements for signature.  

2. Timing of Signature:

• Order of Signature: Typically, the contractor signs the contract first, followed by the CO. This signifies the contractor’s acceptance of the offer.  
• Prompt Execution (FAR 4.103): The CO should sign the contract within a reasonable time after the contractor, aiming for prompt execution to avoid delays and potential disputes.

3. Distribution of Copies:

• Distribution of Signed Copies (FAR 4.104): The CO is responsible for distributing copies of the signed contract to all relevant parties, including the contractor, the paying office, and any other offices involved in contract administration. This ensures everyone has access to the official document.  

4. Electronic Contracting:

• Electronic Signatures (FAR 4.105): The FAR recognizes and encourages the use of electronic signatures, provided they meet specific legal requirements for validity and security. This promotes efficiency and reduces paperwork.  

5. Mistakes in Contracts:

• Correction of Mistakes (FAR 4.106): The FAR provides procedures for correcting minor clerical errors in contracts after execution. This helps to avoid disputes and ensure the contract accurately reflects the parties’ agreement.

6. Contract Filing:

• Contract Files (FAR 4.801): COs must maintain complete and accurate contract files, including all relevant documentation such as the solicitation, proposals, correspondence, modifications, and payment records. This ensures proper record-keeping and accountability.

Additional Considerations:

• Review and Approval: Before signing, the CO must ensure the contract complies with all applicable laws, regulations, and agency policies. This may involve legal review, technical review, and approval from higher authorities.  
• Funding: The CO must verify that adequate funding is available to cover the contract costs.  
• Contract Clauses: The contract must include all necessary clauses, as prescribed by the FAR and any agency supplements. These clauses address various aspects of the contract, such as payment terms, termination rights, and dispute resolution procedures.

Consequences of Improper Execution:

Failure to follow the FAR’s contract execution requirements can have serious consequences, including:

• Contract Invalidity: A contract may be deemed invalid if not properly signed by authorized individuals.  
• Financial Liability: The government may be held liable for unauthorized commitments or improper payments.
• Reputational Damage: Improper execution can damage the government’s reputation and erode public trust.

By adhering to the FAR’s policies and procedures for contract execution, COs can ensure that contracts are legally sound, properly documented, and effectively managed throughout their lifecycle.