Overview
This section outlines the extraordinary emergency authorities granted under Public Law 85-804, which allows the government to enter into or modify contracts to facilitate national defense when standard legal procedures are insufficient.
Key Rules
- Legal Authority: Governed by FAR Subpart 50.1 and 50 U.S.C. 1431-1434 (Public Law 85-804).
- National Defense Requirement: These actions are only permissible if they are deemed necessary to facilitate the national defense.
- Permitted Actions:
- Amendments without Consideration: Modifying a contract even when the government receives no new legal benefit in return.
- Mistake Correction: Mitigating or correcting errors in a contract that would otherwise be legally binding.
- Formalizing Informal Commitments: Legally recognizing and paying for work performed based on unofficial directions or "handshake" agreements.
Practical Implications
- This serves as a "remedy of last resort" for contractors facing extreme financial hardship or for the government to ensure the continuity of critical defense supplies during emergencies.
- Because these actions bypass standard procurement safeguards (like the requirement for consideration), they require high-level approval and rigorous justification.