DFARS Part 250: Extraordinary Contractual Actions and the Safety Act

In plain English

DFARS Part 250 implements the extraordinary contractual actions authority under Public Law 85-804 and the Safety Act, allowing agencies to adjust contracts or provide indemnification when necessary to facilitate national defense. It matters to contractors because it sets the rules for requesting relief from contract terms or obtaining indemnification against unusually hazardous or nuclear risks.

Key rules

• The Secretarial level includes officials at or above Assistant Secretary level and contract adjustment boards established by the Secretary concerned. (250.100)
• Authority to approve actions obligating $90,000 or less under FAR 50.104 may not be delegated below the head of the contracting activity. (250.102-1)
• The Under Secretary of Defense (Acquisition and Sustainment) may exercise authority to indemnify against unusually hazardous or nuclear risks. (250.102-1)
• Requests to obligate the Government in excess of $90,000 must be submitted to the USD(A&S) for approval. (250.102-1-70)
• Requests for indemnification against unusually hazardous or nuclear risks must be submitted to the USD(A&S) for approval before using the indemnification clause at FAR 52.250-1. (250.102-1-70)
• Contractor requests for contract adjustment should be filed with the procuring contracting officer, but if impractical, may be filed with an authorized representative, administrative contracting officer, or the Office of General Counsel. (250.103-3)
• Contract adjustment boards will render decisions as expeditiously as practicable, and the Chair signs a memorandum of decision that must not contain classified information. (250.103-5)
• When indemnification is provided on contracts involving both research and development and other work, the contracting officer must insert an appropriate clause using both 10 U.S.C. 3861 and Public Law 85-804. (250.104-3-70)

Who does what

In practice

• If you seek relief from contract terms or indemnification, you must follow the filing procedures and submit requests to the appropriate official, often the procuring contracting officer.
• Requests for indemnification against unusually hazardous or nuclear risks require approval from the USD(A&S) before the indemnification clause can be used.
• Contract adjustment boards process cases and render decisions, which are documented in a memorandum of decision signed by the Chair.

Common pitfalls

• Do not assume you can file a request for contract adjustment with any official; the regulation specifies that requests should be filed with the procuring contracting officer, and only if impractical with other designated officials.
• Do not use the indemnification clause at FAR 52.250-1 for unusually hazardous or nuclear risks without first obtaining approval from the USD(A&S).
• Do not include classified information in the contract adjustment board's memorandum of decision.

Written by AI from this part's codified text (2026-10-04); cited sections are checked against the part. A guide, not legal advice: the regulation text, the solicitation and your contract rule.