FAR 18.127—Extraordinary contractual actions.
Plain-English Summary
FAR 18.127 points readers to FAR subpart 50.1, which governs extraordinary contractual actions taken under the national defense emergency authority of Public Law 85-804 (50 U.S.C. 1431-1434). The section explains that this authority may be used to enter into, amend, or modify contracts when doing so is necessary to facilitate the national defense in extraordinary circumstances. It specifically identifies three types of actions covered: amending contracts without consideration, correcting or mitigating mistakes in a contract, and formalizing informal commitments. In practice, this means the Government has limited, special authority to fix problems or preserve critical defense-related contracting relationships when ordinary contract administration tools are not enough. Because these actions are exceptional, they are not routine contract changes; they require careful legal and policy review and are used only within the bounds of the statute and implementing procedures.
Key Rules
Extraordinary authority only
The authority described here is not ordinary FAR contract administration. It is a special emergency power under Public Law 85-804, used only to facilitate the national defense in extraordinary situations.
Covers contract changes
Subpart 50.1 applies when the Government needs to enter into, amend, or modify contracts under this special authority. The section is about how those extraordinary actions are handled, not about standard bilateral or unilateral contract modifications.
No-consideration amendments
One covered action is amending a contract without consideration. This allows the Government to make certain changes even when the normal exchange of consideration is not present, but only under the procedures and limits in FAR 50.103-2(a).
Mistake correction or mitigation
The authority may be used to correct or mitigate mistakes in a contract. This is a remedial tool for unusual cases where a contract error would otherwise create unfairness or disrupt national defense needs, subject to FAR 50.103-2(b).
Formalizing informal commitments
The authority also covers formalizing informal commitments. This allows the Government to convert certain nonformal understandings into binding contractual obligations when appropriate under FAR 50.103-2(c).
Procedural compliance required
Although the section is brief, it directs users to the detailed policies and procedures in subpart 50.1. Any action under this authority must follow those procedures, including the required approvals and documentation.
Responsibilities
Contracting Officer
Identify when a situation may warrant extraordinary contractual action, refer the matter to the procedures in FAR subpart 50.1, and ensure any amendment, correction, or formalization is processed only within the limits of the special authority.
Agency
Apply the policy and procedural controls for Public Law 85-804 actions, including review, approval, and documentation requirements, and ensure the action is justified by national defense needs.
Legal/Policy Review Officials
Evaluate whether the proposed action fits the statutory authority, confirm that the facts support use of the extraordinary remedy, and help ensure the action complies with FAR 50.103-2 and related requirements.
Contractor
Provide accurate facts, support the Government’s review of the issue, and participate in any amendment or corrective action process as requested; the contractor may benefit from or be affected by the extraordinary action but does not control its availability.
Practical Implications
This section is a signal that the Government may have a special remedy available when a contract problem cannot be solved through normal FAR procedures.
Contractors should not assume they are entitled to a no-consideration amendment, mistake correction, or formalization of an informal commitment; these are discretionary, exceptional actions.
A common pitfall is treating Public Law 85-804 authority like an ordinary contract modification tool. It is narrower, more sensitive, and tied to national defense necessity.
Documentation and approvals matter. Even when the underlying issue seems straightforward, the agency must still follow the detailed procedures in subpart 50.1.
For contracting officers, the key watch-out is ensuring the facts truly fit one of the three listed categories before moving forward, because misuse of this authority can create legal and audit risk.
Official Regulatory Text
subpart 50.1 prescribes policies and procedures for entering into, amending, or modifying contracts in order to facilitate the national defense under the extraordinary emergency authority granted by Public Law 85-804 ( 50 U.S.C. 1431 - 1434 ). This includes- (a) Amending contracts without consideration (see 50.103-2 (a)); (b) Correcting or mitigating mistakes in a contract (see 50.103-2 (b)); and (c) Formalizing informal commitments (See 50.103-2 (c)).