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An Apparent Problem For Government Contractors | Vinson & Elkins LLP


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A recent decision out of the Armed Services Board of Contract Appeals serves as a useful reminder that the rules regarding apparent authority in contracting apply differently to government employees than to government contractors.
In 2013, Aspen Consulting, LLC entered into a contract with the government. 
Aspen Consulting, LLC, ASBCA No. 6112, 20-1 BCA ¶ 37,715. Benjamin French, Aspen Consulting’s vice-president and chief operating officer, was designated as the project manager and day-to-day point of contact for that contract. Mr. French did not have any authority to enter into contracts on his own, independently investigate or propose change orders, or execute contract modifications without approval. Despite this, Mr. French signed contract documents on behalf of Aspen Consulting, and Aspen Consulting never told the government that Mr. French only had limited contractual authority. ....

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