FAR Part 50: Extraordinary Contractual Actions and the Safety Act

In plain English

FAR Part 50 covers extraordinary contractual actions under Public Law 85-804 and the SAFETY Act. It allows agencies to amend or modify contracts to facilitate national defense and provides liability protections for anti-terrorism technologies. Contractors should understand these procedures if they seek relief for losses or offer anti-terrorism technologies.

Key rules

• Agencies may use Pub. L. 85-804 authority to enter into, amend, or modify contracts without regard to other laws when necessary to facilitate national defense. (50.101-1)
• Contract adjustments may be made only when the action will facilitate national defense, and losses alone are not sufficient basis. (50.103-1, 50.102-3)
• Contractors must submit a written request for adjustment to the contracting officer with specific details and justification. (50.103-3)
• The approving authority must issue a Memorandum of Decision for each request, and contracts must include a citation of Pub. L. 85-804 and E.O. 10789. (50.103-6, 50.103-7)
• Indemnification for unusually hazardous or nuclear risks requires a contractor request and approval, and the clause at 52.250-1 must be inserted in the contract. (50.104-3, 50.104-4)
• The SAFETY Act encourages development of anti-terrorism technologies and provides liability protections for qualified technologies. (50.203)
• Contracting officers may authorize offers contingent upon SAFETY Act designation or certification only under specific conditions, such as DHS issuing a pre-qualification designation notice. (50.205-3)
• Solicitations must include specific provisions regarding SAFETY Act applicability, such as 52.250-2 or 52.250-3, based on DHS determinations. (50.206)

Who does what

In practice

• If you are experiencing losses on a defense contract that threaten your ability to perform, you may request a contract adjustment under Pub. L. 85-804, but you must show that the adjustment will facilitate national defense.
• For contracts involving anti-terrorism technologies, consider seeking SAFETY Act designation or certification to obtain liability protections, and be aware that solicitations may include provisions contingent on such protections.
• When requesting indemnification for unusually hazardous or nuclear risks, submit a detailed request to the contracting officer and be prepared to provide insurance information.

Common pitfalls

• Assuming that any loss under a contract justifies a contract adjustment; the regulation states that losses alone are not sufficient basis.
• Failing to include the required citation of Pub. L. 85-804 and E.O. 10789 in contracts modified under these authorities.
• Not consulting with DHS on questionable SAFETY Act applicability, which could lead to improper solicitation provisions.

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.