FAR 50.1—Subpart 50.1

Definitions.

FAR 50.100 is a short definitions section for FAR Part 50, which governs extraordinary contractual relief under Public Law 85-804 and Executive Order 10789. It defines two terms used throughout the part: "approving authority" and "Secretarial level." In practice, these definitions determine who has the authority to approve contract adjustment actions and what organizational level is required for certain approvals. The section matters because Part 50 relief is an exceptional remedy, so the government must ensure that only properly authorized officials or boards act on requests. Contractors and contracting personnel should read these definitions as a threshold authority check before relying on any Part 50 action.

General.

Delegation of and limitations on exercise of authority.

Contract adjustments.

FAR 50.103 is the gateway provision for contractor requests seeking extraordinary contract relief under Public Law 85-804 and Executive Order 10789. It explains that this part sets the standards and procedures for processing requests for contract adjustment, which are not ordinary contract claims or routine equitable adjustments, but special relief actions available only in limited circumstances when national defense interests justify assistance. In practice, this section tells contractors and contracting officials that requests must be handled under the specific procedures in FAR Part 50, with attention to eligibility, documentation, review, and approval authority. It matters because these requests can result in contract modifications, amendments, or other relief that would not be available under the contract’s normal terms, but only when the legal and policy standards for extraordinary relief are met. The section also signals that the process is discretionary and highly controlled, so both the substance of the request and the way it is submitted and processed are critical. Readers will find here the basic framework for when and how a contractor may seek adjustment and how the Government should process that request.

Residual powers.

FAR 50.104 defines what the Federal Acquisition Regulation means by “residual powers” under Public Law 85-804 and states that this section provides the standards and procedures for exercising those powers. In practical terms, it tells readers which extraordinary authorities remain available after excluding the authority covered by FAR 50.103 and the separate authority to make advance payments under FAR subpart 32.4. The section is important because Public Law 85-804 gives the Government limited emergency-type powers to address unusual contractual situations, but those powers are not unlimited and must be used only within the boundaries set by the FAR. By identifying the scope of residual powers, the rule helps contracting personnel determine when they are dealing with a special statutory authority rather than ordinary procurement authority. It also prevents confusion between residual powers, the specific authority addressed in FAR 50.103, and advance payment authority under the payment regulations. In practice, this section is a gateway provision: it does not itself authorize a particular action, but it frames which actions fall within the residual authority framework and therefore require the procedures and standards that follow in Part 50.