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

FAR 50.103-1 General.

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 explains that simply losing money on a contract is not enough to justify relief under Pub. L. 85-804. The government must judge whether taking action would help the national defense based on all the facts of the case. Even if a situation matches an example in 50.103-2, relief can still be denied for other reasons.

Applies to: Contractors requesting contract adjustment under Pub. L. 85-804

Key terms: Pub. L. 85-804 · national defense · contract adjustment · approving authority

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

The text

The fact that losses occur under a contract is not sufficient basis for exercising the authority conferred by Pub. L. 85-804. Whether appropriate action will facilitate the national defense is a judgment to be made on the basis of all of the facts of the case. Although it is impossible to predict or enumerate all the types of cases in which action may be appropriate, examples are included in 50.103-2. Even if all of the factors in any of the examples are present, other considerations may warrant denying a contractor's request for contract adjustment. The examples are not intended to exclude other cases in which the approving authority determines that the circumstances warrant action.

Sections it refers to

Sections that refer to it

← 50.103 Contract adjustments. · 50.103-2 Types of contract adjustment. →

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 50.103-1 General · SpendQuery