50.102-1 Delegation of authority
Source: FAR 50.102-1 on acquisition.gov
Delegation of authority for extraordinary contract actions is tightly controlled, with high-value and high-risk decisions reserved for senior agency officials to ensure accountability 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 limits on how far down the chain of command this authority can be delegated, especially for high-value or high-risk contract actions.
Key Rules
- Written Delegation Required
- Agency heads may delegate authority, but only in writing and with clear limitations.
- Uniformity of Action
- Delegated authority must be at a sufficiently high level to ensure consistent application across the agency.
- Dollar Threshold for Delegation
- Authority to approve obligations over $90,000 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 agency Secretary, Administrator, Public Printer, or TVA Chairman.
Responsibilities
- Contracting Officers: Must ensure actions are approved by the appropriate authority level and not act outside delegated powers.
- Contractors: Should verify that contract modifications or indemnifications are properly authorized.
- Agencies: Must document delegations in writing and maintain oversight to ensure compliance with delegation limits.
Practical Implications
This section ensures that significant or high-risk contract actions are reviewed and approved at the highest appropriate levels, reducing risk and ensuring accountability. Contractors and contracting officers must be vigilant about proper authorization, especially for large obligations or indemnification clauses, to avoid unauthorized commitments or legal challenges.
An agency head may delegate in writing authority under Pub. L. 85-804 and E.O. 10789, subject to the following limitations:
(a) Authority delegated shall be to a level high enough to ensure uniformity of action.
(b) Authority to approve requests to obligate the Government in excess of $90,000 may not be delegated below the secretarial level.
(c) Regardless of dollar amount, authority to approve any amendment without consideration that increases the contract price or unit price may not be delegated below the secretarial level, except in extraordinary cases or classes of cases when the agency head finds that special circumstances clearly justify such delegation.
(d) Regardless of dollar amount, authority to indemnify against unusually hazardous or nuclear risks, including extension of such indemnification to subcontracts, shall be exercised only by the Secretary or Administrator of the agency concerned, the Public Printer, or the Chairman of the Board of Directors of the Tennessee Valley Authority (see 50.104-3).