General
FAR 50.101 establishes the authority, policy, and recordkeeping requirements for agencies to take extraordinary contractual actions in support of national defense, emphasizing strict justification and documentation.
Overview
FAR 50.101 provides a general introduction to the authority, policy, and recordkeeping requirements for extraordinary contractual actions under Subpart 50.1. This section outlines the legal basis for agencies to take extraordinary actions in the interest of national defense, establishes the overarching policy framework, and emphasizes the importance of maintaining proper records for such actions. It serves as a foundation for understanding when and how agencies may deviate from standard contracting procedures to address urgent or unusual circumstances, typically in support of national defense or public interest needs.
Key Rules
- Authority
- Agencies are granted special authority to enter into, amend, or modify contracts in extraordinary situations, primarily for national defense purposes.
- Policy
- Extraordinary contractual actions are only permitted when they are essential to the national defense and not otherwise provided for by law.
- Records
- Agencies must maintain detailed records of all extraordinary contractual actions, ensuring transparency and accountability.
Responsibilities
- Contracting Officers: Must ensure actions are within authorized limits, comply with policy, and maintain proper documentation.
- Contractors: Should understand the circumstances under which extraordinary actions may be taken and cooperate with recordkeeping requirements.
- Agencies: Responsible for oversight, ensuring actions are justified, and records are complete and accessible for review.
Practical Implications
- This section exists to provide a legal and procedural foundation for handling contracts in extraordinary circumstances, such as emergencies or national defense needs.
- It impacts daily contracting by setting the stage for exceptions to standard rules, but only under strict conditions.
- Common pitfalls include inadequate justification for extraordinary actions or insufficient recordkeeping, which can lead to compliance issues or audit findings.