[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR50]

[Page 950]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 50_EXTRAORDINARY CONTRACTUAL ACTIONS--Table of Contents
 
                    Subpart 50.3_Contract Adjustments
 
Sec.  50.302-1  Amendments without consideration.

    (a) When an actual or threatened loss under a defense contract, 
however caused, will impair the productive ability of a contractor whose 
continued performance on any defense contract or whose continued 
operation as a source of supply is found to be essential to the national 
defense, the contract may be amended without consideration, but only to 
the extent necessary to avoid such impairment to the contractor's 
productive ability.
    (b) When a contractor suffers a loss (not merely a decrease in 
anticipated profits) under a defense contract because of Government 
action, the character of the action will generally determine whether any 
adjustment in the contract will be made, and its extent. When the 
Government directs its action primarily at the contractor and acts in 
its capacity as the other contracting party, the contract may be 
adjusted in the interest of fairness. Thus, when Government action, 
while not creating any liability on the Government's part, increases 
performance cost and results in a loss to the contractor, fairness may 
make some adjustment appropriate.