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FAR and DFARS › FAR Part 50: Extraordinary Contractual Actions and the Safety Act › Subpart 50.1

FAR 50.101-2 Policy.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section sets policy limits on using the extraordinary authority granted by Pub. L. 85-804. It says that authority cannot be used to encourage carelessness or laxity, and cannot be relied on when other adequate legal authority exists. It also notes that some relief once available only under Pub. L. 85-804 is now available under the Contract Disputes statute, so part 33 must be followed instead.

Applies to: Agencies and contracting officers considering use of Pub. L. 85-804 authority

What it requires

  • Do not use Pub. L. 85-804 authority in a way that encourages carelessness or laxity in the defense effort
  • Do not rely on Pub. L. 85-804 when other adequate legal authority exists within the agency
  • Accomplish actions under Pub. L. 85-804 as expeditiously as practicable, with care, restraint, and sound judgment
  • Follow part 33 in preference to subpart 50.1 for relief such as rescission or reformation for mutual mistake

Key terms: Pub. L. 85-804 · Contract Disputes · rescission · reformation for mutual mistake · contracting officer

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) The authority conferred by Pub. L. 85-804 may not—

(1) Be used in a manner that encourages carelessness and laxity on the part of persons engaged in the defense effort; or

(2) Be relied upon when other adequate legal authority exists within the agency.

(b) Actions authorized under Pub. L. 85-804 shall be accomplished as expeditiously as practicable, consistent with the care, restraint, and exercise of sound judgment appropriate to the use of such extraordinary authority.

(c) Certain kinds of relief previously available only under Pub. L. 85-804; e.g., rescission or reformation for mutual mistake, are now available under the authority of 41 U.S.C. chapter 71, Contract Disputes. In accordance with paragraph (a)(2) of this subsection, part 33 must be followed in preference to subpart 50.1 for such relief. In case of doubt as to whether part 33 applies, the contracting officer should seek legal advice.

Sections that refer to it

← 50.101-1 Authority. · 50.101-3 Records. →

Rule changes for FAR Part 50

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 50.101-2 Policy · SpendQuery