FAR 50.103-7—Contract requirements.
Plain-English Summary
FAR 50.103-7 explains what must be included in contracts, amendments, or modifications made under Public Law 85-804 and Executive Order 10789, which are the extraordinary contractual relief authorities in subpart 50.1. It requires a specific contract recital package: a citation to Pub. L. 85-804 and E.O. 10789, a brief statement of the circumstances that justify the action, and a finding that the action will facilitate the national defense. The section also limits the use of the authority in 50.101-1(a) by making clear that it cannot be used to leave out certain required clauses when those clauses would otherwise apply. Those protected clauses cover contingent fees, audit and records in negotiated contracts, overtime and safety standards, construction wage rates, Copeland Act compliance, materials/supplies/equipment contracts, equal opportunity, and assignment of claims. In practice, this section ensures that extraordinary relief actions are documented, legally grounded, and do not become a vehicle for bypassing core statutory and regulatory protections.
Key Rules
Required contract recital
Every contract, amendment, or modification under subpart 50.1 must include a citation to Pub. L. 85-804 and E.O. 10789. This makes clear that the action is being taken under extraordinary relief authority rather than ordinary procurement authority.
State the justification
The contract must briefly describe the circumstances that justify the action. The statement does not need to be lengthy, but it must explain why the relief or adjustment is warranted.
Find national defense benefit
The contract must include a recital that the action will facilitate the national defense. This finding is a core legal predicate for using the authority and must be expressly stated.
No omission of protected clauses
The authority in 50.101-1(a) may not be used to omit certain clauses when they are otherwise required. The listed clauses remain mandatory if applicable to the contract type and circumstances.
Clauses that remain mandatory
The protected clauses include Covenant Against Contingent Fees, Audit and Records-Negotiation, Contract Work Hours and Safety Standards-Overtime Compensation, Construction Wage Rate Requirements, Compliance With Copeland Act Requirements, Contracts for Materials, Supplies, Articles, and Equipment, Equal Opportunity, and Assignment of Claims.
Responsibilities
Contracting Officer
Ensure every contract, amendment, or modification issued under subpart 50.1 contains the required citation, justification statement, and national defense recital. Also verify that any clause otherwise required by regulation is not omitted merely because extraordinary relief authority is being used.
Agency
Use the extraordinary authority only within the limits of Pub. L. 85-804 and E.O. 10789, and maintain internal controls so relief actions are properly documented and legally supportable.
Contractor
Review the contract action to confirm the special authority is identified and that all otherwise applicable mandatory clauses are included. Contractors should also understand that relief actions do not eliminate standard compliance obligations unless a separate legal basis exists.
Practical Implications
This section is mainly a documentation and compliance checkpoint: if the required recital language is missing, the action may be vulnerable to challenge or correction.
Contracting officers should not treat extraordinary relief as a way to strip out standard labor, ethics, audit, or assignment provisions that still apply by law or regulation.
The justification statement should be concise but specific enough to show why the action was necessary; vague boilerplate can create audit or legal risk.
Contractors should carefully compare the final contract text against the normal clause set for the contract type, because the use of Pub. L. 85-804 authority does not automatically waive mandatory clauses.
Because this authority is exceptional, file documentation should clearly connect the facts, the national defense finding, and the specific contract action taken.
Official Regulatory Text
(a) Pub. L. 85-804 and E.O. 10789 require that every contract entered into, amended, or modified under this subpart 50.1 shall contain— (1) A citation of Pub. L. 85-804 and E.O. 10789; (2) A brief statement of the circumstances justifying the action; and (3) A recital of the finding that the action will facilitate the national defense. (b) The authority in 50.101-1 (a) shall not be used to omit from contracts, when otherwise required, the clauses at 52.203-5 , Covenant Against Contingent Fees; 52.215-2 , Audit and Records-Negotiation; 52.222-4 , Contract Work Hours and Safety Standards-Overtime Compensation; 52.222-6 , Construction Wage Rate Requirements; 52.222-10 , Compliance With Copeland Act Requirements; 52.222-20 , Contracts for Materials, Supplies, Articles, and Equipment; 52.222-26 , Equal Opportunity; and 52.232-23 , Assignment of Claims.