FAR and DFARS › FAR Part 50: Extraordinary Contractual Actions and the Safety Act › Subpart 50.1
FAR 50.104-1 Standards for use.
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 when an agency may use residual powers under Public Law 85-804, including authorizing the indemnification clause at 52.250-1. If the clause is included, the agency head may require the contractor to provide and maintain financial protection of a type and amount the agency determines appropriate. The agency head's approval and determination are final.
Applies to: Agencies using residual powers and contractors or subcontractors that may be indemnified under Public Law 85-804
What it requires
- If required by the agency head, provide and maintain financial protection of the type and amount determined appropriate
Key terms: residual powers · indemnification clause · financial protection · self-insurance · workers' compensation insurance
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
Subject to the limitations in 50.102-3, residual powers may be used in accordance with the policies in 50.101-2 when necessary and appropriate, all circumstances considered. In authorizing the inclusion of the clause at 52.250-1, Indemnification Under Public Law 85-804, in a contract or subcontract, an agency head may require the indemnified contractor to provide and maintain financial protection of the type and amount determined appropriate. In deciding whether to approve use of the indemnification clause, and in determining the type and amount of financial protection the indemnified contractor is to provide and maintain, an agency head shall consider such factors as self-insurance, other proof of financial responsibility, workers' compensation insurance, and the availability, cost, and terms of private insurance. The approval and determination shall be final.
← 50.104 Residual powers. · 50.104-2 General. →
Rule changes for FAR Part 50
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · final rule 2025-08-27 · effective 2025-10-01
- Federal Acquisition Regulation: Preventing Organizational Conflicts of Interest in Federal Acquisition ↗ · proposed 2025-01-15 · comments due 2025-03-17
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · proposed 2024-11-29 · comments due 2025-01-28
- Federal Acquisition Regulation: Limitation of Authority Regarding Extraordinary Contractual Actions ↗ · final rule 2024-07-30 · effective 2024-08-29
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.