A contract scenario where a widget is made bigger at the request of a worker, resulting in a higher invoice, illustrates which concept?

• A. Unauthorized Commitment
• B. Change Order
• C. Best and Final Offer
• D. Contract Modification

Answer: (A)

Unauthorized commitment is the idea at play. When a widget is made bigger at a worker’s request, increasing the invoice, it creates a potential binding change without anyone who has authority to approve it giving formal approval. In contract management, changes to scope or price must be authorized by the contracting officer and go through the proper change-control process. Without that approval, the organization isn’t legally bound to pay the higher amount, even though work was done. If a formal change order or contract modification had been initiated and approved through the proper channels, the higher price would be legitimate. Best and Final Offer isn’t relevant to this situation.