50.101-1
Authority
FAR 50.101-1 grants certain agencies special authority to modify contracts for national defense, bypassing standard procurement laws when necessary and properly delegated.
Overview
FAR 50.101-1 outlines the statutory and executive authority that allows certain federal agencies to enter into, amend, or modify contracts in support of national defense, even if such actions would otherwise conflict with existing procurement laws. This authority is granted by Public Law 85-804, which empowers the President to permit agencies involved in national defense to take extraordinary contractual actions when necessary to facilitate national defense objectives. Executive Order 10789 further delegates this authority to the heads of specific agencies, including major departments and agencies with national defense responsibilities, and allows them to further delegate this authority within their organizations.
Key Rules
- Presidential Authority under Pub. L. 85-804
- The President can authorize agencies to bypass standard contracting laws for national defense needs.
- Delegation via E.O. 10789
- Heads of designated agencies are empowered to use and delegate this extraordinary contracting authority within their agencies.
Responsibilities
- Contracting Officers: Must ensure actions taken under this authority are properly delegated and justified as necessary for national defense.
- Contractors: Should be aware that contracts may be amended or modified under this authority, sometimes outside normal procurement rules.
- Agencies: Must follow proper delegation procedures and maintain documentation supporting the use of this authority.
Practical Implications
- This section exists to provide flexibility in contracting for national defense, especially in emergencies or unique situations.
- It impacts contracting by allowing exceptions to standard rules, but only under strict authority and documentation.
- Common pitfalls include improper delegation or insufficient justification for using this extraordinary authority.