FAR 50.103-3—Contract adjustment.
Plain-English Summary
FAR 50.103-3 explains how a contractor must submit a request for a contract adjustment under the public interest and national defense adjustment authorities in FAR part 50. It covers the required form and content of the request, including that it must be submitted in duplicate to the contracting officer or an authorized representative, normally as a letter, and must identify the precise adjustment sought, the essential facts in chronological narrative form, and the contractor’s legal and factual conclusions tied to the entitlement considerations in FAR 50.103-1 and 50.103-2. The section also requires the contractor to state whether contract obligations have been discharged, whether final payment has been made, whether any proceeds will be assigned or transferred and to whom, and whether the contractor has already sought or plans to seek the same or a related adjustment from GAO or another part of the Government. In addition, if the requested adjustment exceeds the simplified acquisition threshold, the contractor must provide a contemporaneous certification that the request is made in good faith and that the supporting data are accurate and complete to the best of the certifier’s knowledge and belief. In practice, this section is about creating a complete, credible, and reviewable submission so the Government can evaluate entitlement and avoid duplicate or inconsistent claims.
Key Rules
Submit in duplicate
A contractor seeking an adjustment must submit the request in duplicate to the contracting officer or an authorized representative. The request is normally a letter, so the contractor should use a clear written format that can be reviewed and retained in the contract file.
State the exact adjustment
The request must identify the precise adjustment sought. Vague or general statements are not enough; the contractor should specify what relief is requested and how it should be applied to the contract.
Provide a factual chronology
The request must include the essential facts in narrative form, summarized chronologically. This means the contractor should present the events in order, with enough detail to show what happened, when it happened, and why it matters.
Explain entitlement basis
The contractor must state its conclusions based on the facts and show when it believes it became entitled to the adjustment, using the considerations in FAR 50.103-1 and 50.103-2. This requires connecting the facts to the legal basis for relief, not just describing the problem.
Disclose related status facts
The request must say whether contract obligations have been discharged, whether final payment has been made, whether any proceeds will be assigned or otherwise transferred and to whom, and whether the contractor has sought or expects to seek the same or a related adjustment from GAO or another Government component. These disclosures help the Government assess finality, payment status, and potential duplication of claims.
Certify larger requests
If the requested adjustment exceeds the simplified acquisition threshold, the contractor must submit a certification at the time of the request. The certification must be signed by an authorized person and state that the request is made in good faith and that the supporting data are accurate and complete to the best of that person’s knowledge and belief.
Responsibilities
Contractor
Prepare and submit a complete written request for adjustment in duplicate, identify the exact relief sought, provide a chronological statement of essential facts, explain the basis for entitlement under FAR 50.103-1 and 50.103-2, disclose the required status and duplication information, and provide the required certification when the request exceeds the simplified acquisition threshold.
Authorized certifier for the contractor
Sign the certification for requests above the simplified acquisition threshold and confirm that the request is made in good faith and that the supporting data are accurate and complete to the best of the certifier’s knowledge and belief.
Contracting Officer
Receive and review the request, determine whether the submission is complete and properly supported, and evaluate the contractor’s stated facts, conclusions, and disclosures in light of the applicable adjustment authority and contract circumstances.
Authorized representative of the contracting officer
Accept the request on behalf of the contracting officer when designated to do so and process it for review in accordance with agency procedures.
Practical Implications
Contractors should treat the request like a formal claim package: incomplete facts, unclear relief, or missing disclosures can delay review or undermine credibility.
The chronology matters. A well-organized timeline often makes it easier for the Government to see causation, entitlement, and the relationship to the contract adjustment authority.
The disclosure about prior or anticipated requests to GAO or other Government offices helps prevent inconsistent or duplicative relief requests; failing to disclose this can create serious credibility and procedural problems.
For requests above the simplified acquisition threshold, the certification is not optional and must be submitted with the request; missing or defective certification can stall processing.
Contracting officers should check for the required elements early, especially the entitlement explanation, payment/finality status, and certification, because these are common points of omission in contractor submissions.
Official Regulatory Text
(a) Contractor requests . A contractor seeking a contract adjustment shall submit a request in duplicate to the contracting officer or an authorized representative. The request, normally a letter, shall state as a minimum- (1) The precise adjustment requested; (2) The essential facts, summarized chronologically in narrative form; (3) The contractor’s conclusions based on these facts, showing, in terms of the considerations set forth in 50.103-1 and 50.103-2 , when the contractor considers itself entitled to the adjustment; and (4) Whether or not- (i) All obligations under the contracts involved have been discharged; (ii) Final payment under the contracts involved has been made; (iii) Any proceeds from the request will be subject to assignment or other transfer, and to whom; and (iv) The contractor has sought the same, or a similar or related, adjustment from the Government Accountability Office or any other part of the Government, or anticipates doing so. (b) Contractor certification . A contractor seeking a contract adjustment that exceeds the simplified acquisition threshold shall, at the time the request is submitted, submit a certification by a person authorized to certify the request on behalf of the contractor that- (1) The request is made in good faith; and (2) The supporting data are accurate and complete to the best of that person’s knowledge and belief.