FAR 50.102-2—Contract adjustment boards.
Plain-English Summary
FAR 50.102-2 explains how an agency may create a contract adjustment board to handle certain extraordinary contract actions under FAR subpart 50.1. It covers the agency head’s authority to establish the board, the board’s power to approve, authorize, and direct appropriate action, and its ability to make the determinations and findings needed to support those actions. The section also addresses the finality of board decisions by stating they are not subject to appeal, while still allowing the board to reconsider and change its own prior decisions. In addition, it gives the board control over its own procedures and broad authority to take whatever action is necessary or appropriate to carry out its mission. Practically, this means agencies can set up a specialized internal decision-making body to move quickly and consistently on contract adjustment matters without going through ordinary appeal channels, which can be important when dealing with urgent or exceptional contract situations.
Key Rules
Agency head may create board
An agency head has discretion to establish a contract adjustment board. The board is not automatic; it exists only if the agency head chooses to create it.
Board may approve actions
The board may approve, authorize, and direct appropriate action under FAR subpart 50.1. This gives the board decision-making authority over the contract adjustment matters assigned to it.
Board makes findings
The board may make all appropriate determinations and findings needed for the actions it handles. This includes the factual and legal support required for contract adjustment decisions.
Decisions are not appealable
Board decisions are final within the agency structure and are not subject to appeal. This limits external review through ordinary appeal channels.
Board may revisit decisions
Although not appealable, the board may reconsider and modify, correct, or reverse its own prior decisions. This preserves internal flexibility to fix errors or respond to new information.
Board controls procedures
The board determines its own procedures. It is not bound by a prescribed process in this section, so it can design procedures suited to its function.
Broad authority to act
The board has authority to take all action necessary or appropriate to conduct its functions. This grants operational flexibility to carry out its responsibilities effectively.
Responsibilities
Agency Head
May establish a contract adjustment board and define its existence within the agency structure. The agency head is responsible for deciding whether this specialized board will be used for subpart 50.1 matters.
Contract Adjustment Board
Must approve, authorize, and direct appropriate action under FAR subpart 50.1 when assigned those matters. The board must also make the necessary determinations and findings, set its own procedures, and take all action needed to perform its functions.
Agency
Must support the board’s operation once established, including recognizing the board’s final decision-making role within the agency and implementing the board’s actions as required.
Practical Implications
This section gives agencies a fast, specialized internal mechanism for handling contract adjustment matters, which can be useful when ordinary processes are too slow or rigid.
Because board decisions are not appealable, parties should ensure the record is complete and the facts are well developed before the board acts; there may be no higher internal review.
The board’s ability to reconsider its own decisions means errors can sometimes be corrected internally, but parties should not assume reconsideration will be granted.
Since the board sets its own procedures, contractors and contracting personnel should verify the applicable agency procedures rather than assuming a uniform government-wide process.
The broad authority to take necessary or appropriate action means the board may use flexible methods, but it still must stay within the scope of FAR subpart 50.1 and the authority delegated by the agency head.
Official Regulatory Text
An agency head may establish a contract adjustment board with authority to approve, authorize, and direct appropriate action under this subpart 50.1 and to make all appropriate determinations and findings. The decisions of the board shall not be subject to appeal; however, the board may reconsider and modify, correct, or reverse its previous decisions. The board shall determine its own procedures and have authority to take all action necessary or appropriate to conduct its functions.