Delegation of and limitations on exercise of authority
FAR 50.102 ensures that only properly authorized officials can approve extraordinary contractual actions, with strict delegation and oversight requirements to prevent misuse.
Overview
FAR 50.102 outlines the delegation and limitations on the exercise of authority for extraordinary contractual actions under Public Law 85-804. This section specifies who may exercise the authority to approve or deny requests for contract adjustments and under what circumstances such authority may be delegated. It also establishes the use of contract adjustment boards and sets forth limitations to ensure proper oversight and compliance with statutory and regulatory requirements. The purpose is to ensure that only properly authorized officials make decisions regarding extraordinary contractual relief, and that such decisions are subject to appropriate controls and review.
Key Rules
- Delegation of Authority
- Authority to approve extraordinary contractual actions may be delegated only to certain officials as specified in agency regulations, ensuring accountability and proper oversight.
- Contract Adjustment Boards
- Agencies may establish boards to review and decide on requests for contract adjustments, providing a structured process for handling extraordinary relief requests.
- Limitations on Authority
- There are specific limitations on the exercise of this authority, including restrictions on further delegation and requirements for compliance with statutory and regulatory provisions.
Responsibilities
- Contracting Officers: Must ensure requests for extraordinary relief are processed in accordance with delegated authority and agency procedures.
- Contractors: Should submit requests for contract adjustments through proper channels and provide required documentation.
- Agencies: Must establish clear procedures for delegation, oversight, and use of contract adjustment boards, and ensure compliance with all limitations.
Practical Implications
- This section exists to prevent misuse of extraordinary contractual authority and to ensure decisions are made by appropriately authorized officials.
- It impacts daily contracting by requiring strict adherence to delegation protocols and oversight mechanisms.
- Common pitfalls include unauthorized delegation, failure to follow agency procedures, and inadequate documentation of decisions.