FAR 50.103-5—Processing cases.
Plain-English Summary
FAR 50.103-5 explains how a contractor’s request for extraordinary contractual relief must be processed once it is properly submitted under FAR 50.103-3(a). It covers the contracting officer’s duty to conduct a thorough fact-finding investigation, including gathering documentary evidence, signed statements when documents are unavailable, and audits when needed to establish financial or cost facts. It also addresses coordination when the case affects more than one Government agency, including liaison and possible joint action. The section further covers how to handle requests that require additional funds from another agency, including the need to confirm funds will be available before approving relief and the information that must be provided in the funding request. Finally, it addresses cases where national defense essentiality is an issue, requiring the agency considering amendment without consideration to obtain advice from the other agency before making a final decision. In practice, this section is about building a complete record, coordinating across agencies, and ensuring the right agency has the information and authority needed before relief is granted or denied.
Key Rules
Thorough fact-finding required
The contracting officer or authorized representative must make a thorough investigation to establish the facts needed to decide the case. This includes obtaining facts and evidence from both contractor and Government personnel.
Use signed statements when needed
If documentary evidence is lacking, the agency should obtain signed statements of material facts from individuals with personal knowledge. The goal is to create a reliable factual record even when records are incomplete.
Audit when financial facts matter
Audits must be obtained when considered necessary to establish financial or cost facts. This is especially important when the requested relief depends on cost, pricing, or funding issues.
Coordinate multi-agency cases
If the case involves matters of interest to more than one Government agency, the interested agencies should maintain liaison to determine whether joint action is appropriate. This prevents inconsistent handling and supports a coordinated Government position.
Do not approve before funding advice
When additional funds are needed from another agency, the contracting agency may not approve the adjustment request until it receives advice that the funds will be available. The funding request must identify the contractor, contract number, amount of proposed relief, a brief contract description, and the accounting classification or fund citation.
Receiving agency bears responsibility
If another agency makes funds available, the agency considering the adjustment request is solely responsible for any action taken on that request. The funding agency provides resources, but the deciding agency retains decision-making responsibility.
Obtain advice on national defense essentiality
When essentiality to the national defense is an issue in an amendment without consideration case, the agency must obtain advice from the other agency before making the final decision. After receiving that advice, the agency considering the request is responsible for taking the appropriate action.
Responsibilities
Contracting Officer
Conduct or oversee a thorough investigation, gather evidence from contractor and Government sources, request audits when needed, coordinate with other agencies when the case spans multiple agencies, and ensure no approval is made before required funding advice is received.
Authorized Representative
Assist the contracting officer in fact-finding and evidence collection when delegated authority to do so, including obtaining statements, records, and other supporting information.
Contractor
Provide requested facts, records, and supporting information relevant to the request for relief and cooperate with the Government’s investigation.
Government Personnel
Provide factual information, signed statements when documentary evidence is unavailable, and other evidence needed to establish the record.
Interested Agencies
Maintain liaison with each other on cases affecting more than one agency and determine whether joint action should be taken.
Funding Agency
Advise whether additional funds will be available when another agency needs funding support for the requested relief.
Agency Considering the Request
Use the information and advice received to decide the case, remain solely responsible for the action taken once funds are made available, and obtain interagency advice on national defense essentiality before making a final decision.
Practical Implications
This section makes the record-building phase critical; a weak factual record can delay or undermine relief decisions. Contracting officers should document everything early, especially when records are incomplete or the issue turns on cost facts.
Interagency coordination is not optional in practice. If more than one agency has an interest, failure to communicate can lead to conflicting positions, funding delays, or an unsupported decision.
A common pitfall is treating a funding promise as approval. The contracting agency must wait for advice that funds will be available before approving the adjustment request.
When national defense essentiality is involved, the deciding agency should not act in isolation. It must obtain the other agency’s advice first, then make its own decision based on that input.
The funding request must be specific. Omitting the contractor name, contract number, amount of relief, contract description, or fund citation can slow down or derail the process.
Official Regulatory Text
(a) In response to a contractor request made in accordance with 50.103-3 (a), the contracting officer or an authorized representative shall make a thorough investigation to establish the facts necessary to decide a given case. Facts and evidence, including signed statements of material facts within the knowledge of individuals when documentary evidence is lacking, and audits if considered necessary to establish financial or cost facts, shall be obtained from contractor and Government personnel. (b) When a case involves matters of interest to more than one Government agency, the interested agencies should maintain liaison with each other to determine whether joint action should be taken. (c) When additional funds are required from another agency, the contracting agency may not approve adjustment requests before receiving advice that the funds will be available. The request for this advice shall give the contractor’s name, the contract number, the amount of proposed relief, a brief description of the contract, and the accounting classification or fund citation. If the other agency makes additional funds available, the agency considering the adjustment request shall be solely responsible for any action taken on the request. (d) When essentiality to the national defense is an issue ( 50.103-2 (a)(1)), agencies considering requests for amendment without consideration involving another agency shall obtain advice on the issue from the other agency before making the final decision. When this advice is received, the agency considering the request for amendment without consideration shall be responsible for taking whatever action is appropriate.