FAR 50.103—Contract adjustments.
Plain-English Summary
FAR 50.103 is the gateway provision for contractor requests seeking extraordinary contract relief under Public Law 85-804 and Executive Order 10789. It explains that this part sets the standards and procedures for processing requests for contract adjustment, which are not ordinary contract claims or routine equitable adjustments, but special relief actions available only in limited circumstances when national defense interests justify assistance. In practice, this section tells contractors and contracting officials that requests must be handled under the specific procedures in FAR Part 50, with attention to eligibility, documentation, review, and approval authority. It matters because these requests can result in contract modifications, amendments, or other relief that would not be available under the contract’s normal terms, but only when the legal and policy standards for extraordinary relief are met. The section also signals that the process is discretionary and highly controlled, so both the substance of the request and the way it is submitted and processed are critical. Readers will find here the basic framework for when and how a contractor may seek adjustment and how the Government should process that request.
Key Rules
Part 50 governs relief requests
Contractor requests for contract adjustment under Pub. L. 85-804 and E.O. 10789 must be processed under the standards and procedures in FAR Part 50. This means the request is not handled like an ordinary contract administration matter or a routine claim under the contract disputes process.
Relief is extraordinary
The section reflects that contract adjustments under this authority are exceptional remedies, available only when the statutory and executive-order framework permits relief in the interest of national defense. The Government does not grant these adjustments as a matter of right.
Procedures must be followed
Requests must be processed according to the specific procedures established for this type of relief. Proper routing, review, and documentation are essential because the authority is tightly regulated and subject to higher-level approval.
Applies to contractor requests
This section specifically addresses contractors’ requests for adjustment, meaning the contractor must initiate the request and present the basis for relief. The Government then evaluates the request under the Part 50 standards rather than under ordinary contract modification rules.
Separate from normal contract remedies
The section distinguishes these requests from standard contract changes, claims, or equitable adjustments. A contractor should not assume that a difficult performance issue or cost overrun automatically qualifies for relief under this authority.
Responsibilities
Contractor
Submit requests for contract adjustment under the Part 50 framework when seeking extraordinary relief under Pub. L. 85-804 and E.O. 10789. The contractor must present the request in the manner required by the applicable procedures and support it with the facts needed for Government review.
Contracting Officer
Receive and process contractor requests in accordance with FAR Part 50 procedures, ensuring the request is handled under the correct authority and routed for the required review and approval. The contracting officer must not treat the request as an ordinary contract administration matter if it is actually a Part 50 request.
Agency
Apply the standards and procedures established for extraordinary contract adjustments and ensure requests are reviewed through the proper internal channels. The agency must maintain compliance with the statutory and executive-order limits on this relief authority.
Practical Implications
Contractors should not confuse Part 50 relief with a claim under the Contract Disputes Act or a routine equitable adjustment; the legal basis, standards, and approval path are different.
A poorly documented request is likely to fail because extraordinary relief depends on a strong factual showing and compliance with the required procedures.
Contracting officers need to identify early whether a submission is actually a Part 50 request so it can be routed correctly and not mishandled as a normal contract modification request.
Because the authority is discretionary and limited, even a sympathetic situation may not qualify unless it fits the national defense and policy framework.
Both sides should watch for timing, documentation, and authority issues, since using the wrong process can delay or defeat the request entirely.
Official Regulatory Text
This section prescribes standards and procedures for processing contractors’ requests for contract adjustment under Pub. L. 85-804 and E.O. 10789.