18.127
Extraordinary contractual actions
FAR 18.127 enables agencies to take extraordinary contractual actions to support national defense during emergencies, including amending contracts without consideration, correcting mistakes, and formalizing informal commitments.
Overview
FAR 18.127 addresses the use of extraordinary contractual actions under the emergency authority of Public Law 85-804, as implemented in Subpart 50.1. This section allows agencies to take special actions with contracts to support national defense needs during emergencies. These actions include amending contracts without consideration, correcting or mitigating contractual mistakes, and formalizing informal commitments. The authority is intended for situations where normal contracting procedures are insufficient to meet urgent national defense requirements.
Key Rules
- Amending Contracts Without Consideration
- Agencies may amend contracts without requiring additional consideration from the contractor when necessary for national defense (see 50.103-2(a)).
- Correcting or Mitigating Mistakes
- Agencies can correct or mitigate mistakes in contracts to ensure fairness and support defense needs (see 50.103-2(b)).
- Formalizing Informal Commitments
- Agencies may formalize commitments made informally when urgent action was required and formal contracting procedures could not be followed (see 50.103-2(c)).
Responsibilities
- Contracting Officers: Must follow Subpart 50.1 procedures and ensure actions are justified under emergency authority.
- Contractors: Should cooperate with agencies in documenting and executing extraordinary actions.
- Agencies: Must ensure proper documentation, justification, and compliance with statutory and regulatory requirements.
Practical Implications
- This section provides flexibility to address urgent national defense needs when standard contracting rules are inadequate.
- It is rarely used and subject to strict oversight and documentation requirements.
- Contractors should be aware that these actions are exceptional and require clear justification and compliance with agency instructions.