7.15. Legal Entity
- Whatever the form of procurement document, the contracting officer must ensure that it is with a supplier that is a legal entity having the legal capacity to contract, and that the supplier's legal name is used.
- Possession of a Procurement Business Number (PBN) is not equivalent to having the legal capacity to contract. The contracting officer must still verify that the supplier has the legal capacity to contract.
- For example, a contract may not be awarded to a division of a corporation, as it is not a legal entity. Be aware that computerized source lists may include an abbreviated name for a supplier. In some cases, a legal entity (for example a numbered company) will use a business name to do business. In such cases, the legal name (the number of the company) must be used and it could be followed by "doing business as ______(insert the business name)".