[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR50]



[Page 965]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 50_EXTRAORDINARY CONTRACTUAL ACTIONS--Table of Contents

 

                    Subpart 50.3_Contract Adjustments

 

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.