50.102-1
Delegation of authority
Delegation of extraordinary contract authority is tightly controlled, with high-value or high-risk actions requiring approval from top agency officials to ensure oversight and uniformity.
Overview
FAR 50.102-1 outlines the rules for delegating authority under Public Law 85-804 and Executive Order 10789, which allow agencies to enter into, amend, or modify contracts to facilitate national defense. The section specifies who within an agency can be given this authority and sets strict limitations to ensure oversight and uniformity in decision-making, especially for high-value or high-risk contract actions.
Key Rules
- Written Delegation
- Agency heads may delegate authority in writing, but only to sufficiently high levels to maintain uniformity of action.
- Dollar Threshold for Delegation
- Authority to approve obligations over $75,000 cannot be delegated below the secretarial level.
- Amendments Without Consideration
- Authority to approve amendments that increase contract or unit price without consideration cannot be delegated below the secretarial level, except in extraordinary, justified cases.
- Indemnification Authority
- Authority to indemnify against unusually hazardous or nuclear risks is strictly limited to the highest agency officials (Secretary, Administrator, Public Printer, or TVA Chairman).
Responsibilities
- Contracting Officers: Must ensure actions requiring higher-level approval are not executed without proper delegation.
- Contractors: Should be aware that certain contract modifications or indemnifications require approval from top agency officials, potentially impacting timelines.
- Agencies: Must document delegations in writing and ensure compliance with delegation limitations.
Practical Implications
- This section exists to prevent misuse or inconsistent application of extraordinary contract authorities.
- It impacts daily contracting by requiring higher-level review for significant or risky contract actions, which can affect processing times.
- Common pitfalls include improper delegation or unauthorized approvals, which can invalidate contract actions.