50.103-7
Contract requirements
Contracts under Pub. L. 85-804 authority must include specific citations, justifications, and cannot omit key FAR compliance clauses.
Overview
FAR 50.103-7 outlines the mandatory requirements for contracts, amendments, or modifications executed under the extraordinary contractual authority provided by Public Law 85-804 and Executive Order 10789. This section ensures that such contracts include specific citations, justifications, and findings to support the use of this special authority, which is intended to facilitate national defense. Additionally, it prohibits the omission of certain standard FAR clauses, even when using this extraordinary authority, ensuring continued compliance with key federal contracting regulations.
Key Rules
- Mandatory Citations and Justifications
- Contracts must cite Pub. L. 85-804 and E.O. 10789, include a brief justification for the action, and state that the action facilitates national defense.
- Required FAR Clauses
- The authority under 50.101-1(a) cannot be used to omit essential FAR clauses related to contingent fees, audit and records, work hours, wage rates, Copeland Act compliance, materials and supplies, equal opportunity, and assignment of claims.
Responsibilities
- Contracting Officers: Must ensure all required citations, justifications, and findings are included in the contract, and that all specified FAR clauses are present.
- Contractors: Must comply with the included FAR clauses and understand the basis for the contract's extraordinary authority.
- Agencies: Must oversee compliance with these requirements and ensure proper documentation is maintained.
Practical Implications
- This section exists to maintain transparency and accountability when using extraordinary contractual authority for national defense purposes.
- It impacts daily contracting by requiring additional documentation and by preventing the omission of critical compliance clauses.
- Common pitfalls include failing to include required citations or omitting mandatory FAR clauses, which can result in noncompliance or contract challenges.