48 CFR § 750.7107 - 750.7107 Limitations upon exercise of authority.
---
identifier: "/us/cfr/t48/s750.7107"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 750.7107 - 750.7107 Limitations upon exercise of authority."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "750.7107"
section_name: "750.7107 Limitations upon exercise of authority."
chapter_number: 7
chapter_name: "AGENCY FOR INTERNATIONAL DEVELOPMENT"
subchapter_number: "G"
subchapter_name: "CONTRACT MANAGEMENT"
part_number: "750"
part_name: "EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Sec. 621, Pub. L. 87-195, 75 Stat. 445, (22 U.S.C. 2381) as amended; E.O. 12163, Sept. 29, 1979, 44 FR 56673; 3 CFR, 1979 Comp., p. 435."
regulatory_source: "49 FR 13257, Apr. 3, 1984, unless otherwise noted."
cfr_part: "750"
---
# 750.7107 750.7107 Limitations upon exercise of authority.
(a) Executive Order 11223 does not provide authority for:
(1) The award of a cost-plus-a-percentage-of-cost contract;
(2) The payment of profit or fees in excess of applicable limitations; or
(3) The waiver of any requirement to post a bid, payment, performance, or other bond required by law.
(b)(1) Executive Order 11223 does not authorize the issuance of a modification, unless:
(i) With respect to cases falling within Section 4 of Executive Order 11223, the approving authority determines that the action is necessary to protect the foreign policy interests of the United States; and
(ii) No other legal authority authorizes issuance of such modification.
(2) A modification under paragraph (b)(1) of this section must be within the limits of the amounts appropriated and the statutory contract authorization as referenced in FAR 50.102-3.
(c) No contract shall be modified unless the contractor submits a request prior to all obligations (including final payment) under the contract having been discharged.
(d) An informal commitment must not be formalized unless:
(1) The contractor submits a written request for payment within six months after furnishing, or arranging to furnish, supplies or services in reliance upon the commitment;
(2) USAID has received the services satisfactorily performed, or has accepted property furnished in reliance on the commitment;
(3) The USAID employee alleged to have made the informal commitment has affirmatively acknowledged responsibility for making the informal commitment in question; and
(4) USAID has taken appropriate action to prevent recurrence.
[89 FR 4207, Jan. 23, 2024]