14 FAH-2 H-550
CONTRACT DISPUTES AND APPEALS
(CT:COR-36; 08-03-2015)
(Office of Origin: A/OPE)
14 FAH-2 H-551 DISPUTES
(CT:COR-36; 08-03-2015)
a. No matter how carefully a contract is negotiated and
written and because of the complexities of the U.S. Government contracting
process, disputes may arise. The Federal
Acquisition Regulation (FAR) 48 CFR 52.233-1 "Disputes" clause included in all
U.S. Government contracts is designed to prevent disagreements between the U.S.
Government and the contractor from disrupting performance under the contract.
(See FAR 48 CFR 33.000 and Department of State Acquisition Regulation (DOSAR) 48 CFR 633.203.)
b. The contracting officer has decision-making powers
for resolving many contractual matters. If agreement can be reached between
the two parties (U.S. Government and contractor) with regard to equitable
adjustments pursuant to contract clauses, additional reimbursement for extra
work performed, or refunds required under the Inspection or other contract
clause, a bilateral agreement may be negotiated.
c. If agreement cannot be reached by the parties,
these issues and other disagreements are resolved under the procedures set
forth in the Disputes clause. The Disputes clause provides, among other
things, that:
(1) The contract is subject to 41 U.S.C. 7101 through 41 U.S.C. 7109, Contract Disputes;
(2) The contracting officer's decision is final unless
the contractor appeals or files a suit as provided in 41 U.S.C 7104;
(3) A claim by the contractor must be made in writing
and submitted to the contracting officer for a written decision;
(4) For contractor claims of $100,000 or less, the
contracting officer must render a decision within 60 days; for certified claims in excess of $100,000, the
contracting officer must decide the claim within 60 days or notify the
contractor of the date when the decision will be made;
(5) A claim by the U.S. Government against the
contractor must be subject to a written decision by the contracting officer;
(6) Interest on the amount found due on contractor
claims is paid by the U.S. Government from:
(a) The date the
contracting officer receives the claim (certified if required); or
(b) The date that payment
otherwise would be due, if that date is later until the date of payment; and
(7) Except as the parties may otherwise agree, pending
final resolution of a claim by the contractor arising under the contract, the
contractor must proceed diligently with the performance of the contract in
compliance with the contracting officer's decision.
d. Because of their technical knowledge and their close
involvement with a contract, contracting officers representatives (CORs) are
usually involved in the settlement of disputes. Their input often forms the
basis of the U.S. Governments position during the entire disputes process.
The CORs technical insight and expertise is critical to fairness and accuracy
when the contracting officer is attempting to determine the merits of the
claim.
e. The authority of the contracting officer under 41
U.S.C. 7103(a)(5) does not extend to
claims or disputes which by statute or regulation other agencies are expressly
authorized to decide (reference 48 CFR
33.210).
f. All claims are
coordinated through the Office of the Assistant Legal Adviser for Business
Affairs (L/BA). Overseas post claims are also coordinated through A/OPE.
14 FAH-2 H-552 APPEALS
(CT:COR-36; 08-03-2015)
a. The contractor may appeal the contracting officer's
final decision to the U.S. Civilian Board of Contract Appeals within 90 days of receipt of the decision, or,
within 12 months of receipt of the decision, to the U.S. Court of Federal
Claims. If he or she fails to do this, the decision concerning a question of
fact becomes final (reference FAR 48 CFR
33.211(a)(4)(v) and 41 U.S.C. 7104, "Contractor's right of appeal from decision by
contracting officer").
b. The contracting officers representative (COR) must
provide to the contracting officer, upon his or
her request, any support, assistance, and documentation required for
resolution of a dispute.
14 FAH-2 H-553 THROUGH H-559 UNASSIGNED