50.104-2
General
All actions taken under residual powers must be thoroughly documented and comply with referenced FAR requirements to ensure transparency and legal sufficiency.
Overview
FAR 50.104-2 outlines the general procedural requirements for the use of residual powers under extraordinary contractual actions. It mandates that any approval or denial of such actions must be documented in a Memorandum of Decision, which should include the same information required by FAR 50.103-6. Additionally, any contract that is entered into, amended, or modified using residual powers must adhere to the requirements specified in FAR 50.103-7. This ensures consistency, transparency, and compliance with established standards when exercising these special authorities.
Key Rules
- Memorandum of Decision Requirement
- Approvals or denials of proposals to exercise residual powers must be documented in a signed and dated Memorandum of Decision, containing information as outlined in FAR 50.103-6.
- Contract Compliance
- All contracts affected by the exercise of residual powers must comply with the requirements of FAR 50.103-7.
Responsibilities
- Contracting Officers: Must ensure that decisions regarding residual powers are properly documented and that all related contracts meet compliance requirements.
- Contractors: Should be aware that contracts modified under residual powers are subject to specific documentation and compliance standards.
- Agencies: Must oversee the proper use and documentation of residual powers and ensure adherence to referenced FAR sections.
Practical Implications
- This section exists to ensure that the exercise of extraordinary contractual powers is transparent, justified, and compliant with established procedures.
- It impacts daily contracting by requiring thorough documentation and adherence to referenced FAR requirements, reducing the risk of improper or unsupported use of residual powers.
- Common pitfalls include inadequate documentation or failure to comply with referenced sections, which can lead to audit findings or contract disputes.