50.102-2
Contract adjustment boards
Contract adjustment boards have final authority over extraordinary contract actions, with decisions not subject to appeal but open to board reconsideration.
Overview
FAR 50.102-2 allows an agency head to establish a contract adjustment board with the authority to approve, authorize, and direct actions under FAR Subpart 50.1, which deals with extraordinary contractual actions. The board can make all necessary determinations and findings related to contract adjustments. Its decisions are final and not subject to appeal, but the board retains the right to reconsider and modify or reverse its own decisions. The board also has the autonomy to set its own procedures and take any actions necessary to fulfill its responsibilities.
Key Rules
- Establishment of Contract Adjustment Board
- Agency heads may create boards to handle contract adjustments under Subpart 50.1.
- Board Authority and Finality
- The board has broad authority to make decisions, which are not appealable, but can be reconsidered by the board itself.
- Procedural Autonomy
- The board determines its own procedures and can take any necessary actions to perform its functions.
Responsibilities
- Contracting Officers: Must recognize the board's authority and adhere to its decisions regarding contract adjustments.
- Contractors: Should understand that board decisions are final, though the board may reconsider its rulings.
- Agencies: Responsible for establishing boards and ensuring they have the necessary authority and procedural independence.
Practical Implications
- This section provides a mechanism for agencies to handle extraordinary contract adjustments efficiently and with finality.
- Contractors should be aware that appeals outside the board are not permitted, but requests for reconsideration may be possible.
- Agencies must ensure boards are empowered and operate independently, which can streamline complex contract adjustment processes.