How should contracting officer authority be exercised during negotiations?

• A. Contracting officer authority should be exercised unilaterally without delegation.
• B. Within the CO's statutory authority, with proper delegation, policy compliance, and documentation.
• C. Only by the head of agency.
• D. By any contracting staff regardless of authority.

Answer: (B)

Negotiating with offerors must stay within what the contracting officer is officially authorized to do. The CO can bargain and reach agreement only within their statutory authority and the specific delegation the agency has granted. If others assist, their involvement must be covered by written delegation and remain within that scope, with the CO retaining accountability for the final terms. All negotiation activity should follow applicable policies and procedures, such as maintaining fair competition, adhering to program rules, and ensuring price reasonableness and sound contract terms. And every significant decision, concession, or term should be clearly documented in the contract file to create an auditable record. If a desired action would exceed the CO’s delegated authority, higher approval must be sought before finalizing the agreement.