FAR 50.102-1—Delegation of authority.
Plain-English Summary
FAR 50.102-1 explains how authority under Public Law 85-804 and Executive Order 10789 may be delegated within an agency, and it sets strict limits on how far that authority can be pushed down the chain of command. The section covers four main topics: the general rule that delegation must be in writing, the requirement that delegated authority be assigned high enough to promote uniformity of action, the prohibition on delegating authority to approve requests to obligate the Government above $90,000 below the secretarial level, the restriction on delegating authority to approve no-consideration amendments that increase contract or unit price, and the special rule for indemnification of unusually hazardous or nuclear risks, including subcontract coverage. In practice, this section is about controlling extraordinary contract actions that can create significant financial exposure or policy inconsistency, so the Government reserves these decisions to senior officials unless a narrow exception applies. It matters because these authorities are not routine contracting actions; they involve exceptional relief, price increases without consideration, or indemnification commitments that can bind the Government to substantial risk. Contractors should understand that approvals under this authority are limited, highly controlled, and often require senior-level review, while agencies must ensure their internal delegations comply with the FAR’s ceiling on delegation.
Key Rules
Written delegation required
An agency head may delegate authority under Pub. L. 85-804 and E.O. 10789 only in writing. Oral or implied delegations are not sufficient for these extraordinary authorities.
Delegate high enough for uniformity
Any delegated authority must be assigned to a level high enough to ensure uniformity of action. This means agencies should place the authority where decisions can be applied consistently across the organization, not scattered at low levels.
$90,000 approval limit
Authority to approve requests to obligate the Government in excess of $90,000 may not be delegated below the secretarial level. Requests above that threshold require senior-level approval and cannot be pushed down to lower officials.
No-consideration price increases
Authority to approve an amendment without consideration that increases the contract price or unit price may not be delegated below the secretarial level, regardless of dollar amount. An exception is allowed only in extraordinary cases or classes of cases when the agency head determines that special circumstances clearly justify the delegation.
Hazardous and nuclear indemnification
Authority to indemnify against unusually hazardous or nuclear risks, including extending that indemnification to subcontracts, may be exercised only by the Secretary or Administrator of the agency, the Public Printer, or the Chairman of the TVA Board, as applicable. This authority is not delegable below those officials.
Refer to related guidance
The rule on indemnification specifically points to FAR 50.104-3 for additional guidance. Users should read this section together with the implementing procedures and any agency-specific controls.
Responsibilities
Agency Head
Make any delegation of authority under Pub. L. 85-804 and E.O. 10789 in writing, ensure the delegate is at a sufficiently high organizational level to promote uniformity, and retain or limit authority where the FAR requires senior-level action. The agency head may create an extraordinary-case delegation for no-consideration price-increase amendments only when special circumstances clearly justify it.
Secretary or Administrator of the Agency
Personally exercise or control authority to approve requests to obligate the Government over $90,000, and personally approve no-consideration amendments that increase contract or unit price unless a valid extraordinary-case delegation exists. Also personally exercise authority to indemnify unusually hazardous or nuclear risks, including subcontract coverage, where applicable.
Public Printer
Personally exercise the authority to indemnify against unusually hazardous or nuclear risks, including extension to subcontracts, for the applicable organization.
Chairman of the Board of Directors of the Tennessee Valley Authority
Personally exercise the authority to indemnify against unusually hazardous or nuclear risks, including extension to subcontracts, for TVA matters.
Delegated Official
Use the delegated authority only within the scope and limits of the written delegation, apply it consistently, and avoid acting on matters that the FAR reserves to secretarial-level or other named senior officials.
Contracting Officer / Program Officials
Recognize when a proposed action involves Pub. L. 85-804 or E.O. 10789 authority, route the matter to the proper approving official, and avoid treating these actions as routine contract administration.
Practical Implications
Agencies must document delegations carefully; if the delegation is not written or is below the required level, the action may be unauthorized.
Contractors seeking relief, price increases without consideration, or indemnification should expect senior-level review and longer processing times because these are exceptional authorities.
The $90,000 threshold is a hard delegation limit for approving requests to obligate the Government, so agencies should verify dollar amounts before routing approvals.
No-consideration amendments that increase price are especially sensitive because they can look like a contract modification but are treated as an extraordinary authority with strict approval limits.
For hazardous or nuclear risk indemnification, the decision-maker is narrowly identified in the rule, so agencies should confirm the correct official and consult FAR 50.104-3 before proceeding.
Official Regulatory Text
An agency head may delegate in writing authority under Pub. L. 85-804 and E.O. 10789, subject to the following limitations: (a) Authority delegated shall be to a level high enough to ensure uniformity of action. (b) Authority to approve requests to obligate the Government in excess of $90,000 may not be delegated below the secretarial level. (c) Regardless of dollar amount, authority to approve any amendment without consideration that increases the contract price or unit price may not be delegated below the secretarial level, except in extraordinary cases or classes of cases when the agency head finds that special circumstances clearly justify such delegation. (d) Regardless of dollar amount, authority to indemnify against unusually hazardous or nuclear risks, including extension of such indemnification to subcontracts, shall be exercised only by the Secretary or Administrator of the agency concerned, the Public Printer, or the Chairman of the Board of Directors of the Tennessee Valley Authority (see 50.104-3 ).