FAR 50.101-1—Authority.
Plain-English Summary
FAR 50.101-1 explains the legal authority behind the extraordinary contract relief framework in Public Law 85-804 and identifies which agencies may use that authority under Executive Order 10789. It covers the President’s power to authorize agencies involved in national defense to enter into, amend, or modify contracts without regard to other laws governing contract formation, performance, amendment, or modification when doing so would facilitate the national defense. It also lists the agencies whose heads may exercise that authority and delegate it within their organizations, including the Government Publishing Office, Department of Homeland Security, Tennessee Valley Authority, NASA, GSA, the Defense, Army, Navy, Air Force, Treasury, Interior, Agriculture, Commerce, and Transportation Departments, and the Department of Energy for transferred functions from other authorized agencies, as well as any other agency later authorized by the President. In practice, this section is the gateway to understanding who can invoke this special authority and under what legal basis, but it does not itself grant relief in a specific case. Contractors and contracting officials use it to determine whether a particular agency has the power to consider extraordinary contractual actions outside normal procurement rules.
Key Rules
Public Law 85-804 authority
Pub. L. 85-804 allows the President to authorize agencies performing national defense functions to enter into, amend, or modify contracts without regard to other laws related to making, performing, amending, or modifying contracts. The authority is available only when the President determines the action would facilitate the national defense.
National defense purpose required
The authority is not a general contracting convenience tool. It exists only to support national defense interests, so the underlying action must be justified as facilitating that purpose.
Executive Order implementation
E.O. 10789 is the implementing authority that identifies which agency heads may exercise the Pub. L. 85-804 authority. It also permits those heads to delegate the authority to other officials within the agency.
Covered agencies listed
The section specifically names the Government Publishing Office, Department of Homeland Security, Tennessee Valley Authority, NASA, GSA, Defense, Army, Navy, Air Force, Treasury, Interior, Agriculture, Commerce, and Transportation Departments, and the Department of Energy for transferred functions from other authorized agencies.
Additional authorized agencies possible
The list is not necessarily permanent or exhaustive. Any other agency that the President later authorizes may also exercise the authority.
Delegation within agencies
Agency heads who are authorized may delegate the authority to other officials inside the agency, but only within the limits of the executive order and agency-specific delegation arrangements.
Responsibilities
President
Determine whether agencies exercising national defense functions may use the special authority under Pub. L. 85-804 and decide whether an action would facilitate the national defense.
Agency Heads
Exercise the authority granted by E.O. 10789 for their agencies and establish internal delegations to other officials as permitted.
Delegated Agency Officials
Use the authority only when properly delegated and only for actions within the scope of the agency’s Pub. L. 85-804 authority.
Contracting Officers and Acquisition Staff
Verify that the agency and official involved actually have authority before pursuing extraordinary contract actions, and ensure the action is tied to national defense facilitation.
Contractors
Confirm that any request for extraordinary relief is being considered by an authorized agency official and understand that this authority is limited and exceptional, not a routine contract remedy.
Practical Implications
This section is a threshold check: before anyone considers extraordinary contract relief, they must confirm the agency is covered and the decision-maker has valid authority.
The authority is narrow and purpose-driven; a contractor cannot rely on it simply because a contract problem exists. The action must support national defense.
Agency delegation matters. Even if an agency is listed, the specific official handling the matter must have a valid delegation or the action may be invalid.
The section does not describe the substantive standards for relief or the procedures for obtaining it; it only establishes who may act under the special authority.
A common pitfall is assuming all federal agencies can use Pub. L. 85-804. Only the agencies named in the executive order, plus any later-authorized agencies, may do so.
Official Regulatory Text
(a) Pub. L. 85-804 empowers the President to authorize agencies exercising functions in connection with the national defense to enter into, amend, and modify contracts, without regard to other provisions of law related to making, performing, amending, or modifying contracts, whenever the President considers that such action would facilitate the national defense. (b) E.O. 10789 authorizes the heads of the following agencies to exercise the authority conferred by Pub. L. 85-804 and to delegate it to other officials within the agency: the Government Publishing Office; the Department of Homeland Security; the Tennessee Valley Authority; the National Aeronautics and Space Administration; the General Services Administration; the Defense, Army, Navy, Air Force, Treasury, Interior, Agriculture, Commerce, and Transportation Departments; the Department of Energy for functions transferred to that Department from other authorized agencies; and any other agency that may be authorized by the President.