2022FN2-082unauthorizedcontracts

Unauthorized Contracts

Do You Have the Authority to Make That Purchase?

  • If you make an unauthorized contractual commitment, you could be required to assume some or all of the liability, and face other administrative sanctions.
  • This issue arises when purchases are made by a Postal Service employee who hasn’t been delegated contracting or local buying authority, or who exceeds that authority.
  • Unauthorized contractual commitments must go through an after-the-fact process during which approval is not automatic. In such a case, the employee who made the unauthorized commitment could be held responsible.
  • Don’t engage in ordering supplies or services unless you have contracting or local buying authority.

Using the right purchasing policies and procedures ensures the Postal Service will get the best prices and payment terms.
And that’s smart business.

Find more information about purchase procedures at Handbook AS-709, Local Buying and Purchase Card Policies and procedures:
https://blue.usps.gov/cpim/ftp/hand/as709.pdf