110 STAT. 3870 PUBLIC LAW 104-320—OCT. 19, 1996 

Public Law 104-320 

104th Congress 

An Act 

Oct. 19, 1996 To reauthorize alternative means of dispute resolution in the Federal administrative 

[H.R. 4194] process, and for other purposes. 

Be it enacted by the Senate and House of Representatives of 

Administrative the United States of America in Congress assembled. 

Dispute 

^solution Act of SECTION 1. SHORT TITLE. 

5 use 571 note. This Act may be cited as the "Administrative Dispute 

Resolution Act of 1996". 

SEC. 2. AMENDMENT TO DEFINITIONS. 

Section 571 of title 5, United States Code, is amended— 

(1) in paragraph (3)— 

(A) by striking ", in lieu of an adjudication as defined 

in section 551(7) of this title,"; 

(B) by striking "settlement negotiations,"; and 

(C) by striking "and arbitration" and inserting "arbitration, and use of ombuds"; and 

(2) in paragraph (8)— 

(A) in subparagraph (B) by striking "decision," £ind 

inserting "decision;"; and 

(B) by striking the matter following subparagraph (B). 

SEC. 3. AMENDMENTS TO CONFIDENTIALITY PROVISIONS. 

(a) LIMITATION OF CONFIDENTIALITY APPLICATION TO 

COMMUNICATION.—Subsections (a) and (b) of section 574 of title 

5, United States Code, are each amended in the matter before 

paragraph (1) by striking "any information concerning". 

(b) DISPUTE RESOLUTION COMMUNICATION.—Section 574(bX7) 

of title 5, United States Code, is amended to read as follows: 

"(7) except for dispute resolution communications generated 

by the neutral, the dispute resolution commimication was provided to or was available to all parties to the dispute resolution 

proceeding.". 

(c) ALTERNATIVE CONFIDENTIALITY PROCEDURES.—Section 

574(d) of title 5, United States Code, is amended— 

(1) by inserting "(1)" after "(d)"; and 

(2) by adding at the end thereof the following new 

paragraph: 

"(2) To qualify for the exemption estabUshed under subsection 

(j), an alternative confidential procedure imder this si^bsection may 

not provide for less disclosure than the confidential procedures 

otherwise provided under this section.". 
PUBLIC LAW 104-320—OCT. 19, 1996 110 STAT. 3871 

(d) EXEMPTION FROM DISCLOSURE BY STATUTE.—Section 574 

of title 5, United States Code, is amended by amending subsection 

(j) to read as follows: 

"(j) A dispute resolution communication which is between a 

neutral and a party and which may not be disclosed \mder this 

section shall also be exempt from disclosure under section 

552(b)(3).". 

SEC. 4. AMENDMENT TO REFLECT THE CLOSURE OF THE 

ADMINISTRATIVE CONFERENCE. 

(a) PROMOTION OF ADMINISTRATIVE DISPUTE RESOLUTIONS.— 

Section 3(a)(1) of the Administrative Dispute Resolution Act (5 

U.S.C. 571 note; Public Law 101-552; 104 Stat. 2736) is amended 

to read as follows: 

"(1) consult with the agency designated by, or the interagency committee designated or established by, the President 

under section 573 of title 5, United States Code, to facilitate 

and encourage agency use of alternative dispute resolution 

under subchapter IV of chapter 5 of such title; and". 

(b) COMPILATION OF INFORMATION.— 

(1) IN GENERAL.—Section 582 of title 5, United States Code, 

is repealed. 

(2) TECHNICAL AND CONFORMING AMENDMENT.—The table 

of sections for chapter 5 of title 5, United States Code, is 

amended by striking the item relating to section 582. 

(c) FEDERAL MEDLVTION AND CONCILIATION SERVICE.—Section 

203(f) of the Labor Management Relations Act, 1947 (29 U.S.C. 

173(f)) is amended by striking "the Administrative Conference of 

the United States and other agencies" and inserting "the agency 

designated by, or the interagency committee designated or estabHshed by, the President under section 573 of title 5, United States 

Code,". 

SEC 5. AMENDMENTS TO SUPPORT SERVICES PROVISION. 

Section 583 of title 5, United States Code, is amended by 

inserting "State, locsd, and tribeJ governments," £ifter "other Federal 

agencies,". 

SEC. 6. AMENDMENTS TO THE CONTRACT DISPUTES ACT. 

Section 6 of the Contract Disputes Act of 1978 (41 U.S.C. 

605) is amended— 

(1) in subsection (d) by striking the second sentence and Certification. 

inserting: "The contractor shall certify the claim when required 

to do so as provided under subsection (c)(1) or as otherwise 

required by law."; and 

(2) in subsection (e) by striking the first sentence. 

SEC. 7. AMENDMENTS ON ACQUIRING NEUTRALS. 

(a) EXPEDITED HIRING OF NEUTRALS.— 

(1) COMPETITIVE REQUIREMENTS IN DEFENSE AGENCY 

CONTRACTS.—Section 2304(c)(3)(C) of title 10, United States 

Code, is amended by striking "agency, or" and inserting "agency, 

or to procure the services of an expert or neutral for use". 

(2) COMPETITIVE REQUIREMENTS IN FEDERAL CONTRACTS.— 

Section 303(c)(3)(C) of the Federal Property and Administrative 

Services Act of 1949 (41 U.S.C. 253(c)(3)(C)), is amended by 

striking "agency, or" and inserting "agency, or to procure the 

services of an expert or neutral for use". 
110 STAT. 3872 PUBLIC LAW 104-320—OCT. 19, 1996 

(b) REFERENCES TO THE ADMINISTRATIVE CONFERENCE OF THE 

UNITED STATES.—Section 573 of title 5, United States Code, is 

amended— 

(1) by striking subsection (c) and inserting the following: 

President. "(c) The President shall designate an agency or designate or 

establish an interagency committee to facilitate and encourage 

agency use of dispute resolution under this subchapter. Such agency 

or interagency committee, in consultation with other ai)propriate 

Federal agencies and professional organizations experienced in 

matters concerning dispute resolution, shall— 

"(1) encourage sind facilitate agency use of alternative 

means of dispute resolution; and 

"(2) develop procedures that permit agencies to obtain the 

services of neutr^s on an expedited basis."; eind 

(2) in subsection (e) by striking "on a roster established 

under subsection (c)(2) or a roster maintained by other public 

or private organizations, or individual". 

SEC. 8. ARBITRATION AWARDS AND JUDICIAL REVIEW. 

(a) ARBITRATION AWARDS.—Section 580 of title 5, United States 

Code, is amended— 

(1) by striking subsections (c), (f), and (g); and 

(2) by redesignating subsections (d) and (e) as subsections 

(c) £ind (d), respectively. 

(b) JUDICIAL AWARDS.—Section 581(d) of title 5, United States 

Code, is amended— 

(1) by striking "(1)" after "(b)"; and 

(2) by striking paragraph (2). 

(c) AUTHORIZATION OF ARBITRATION.—Section 575 of title 5, 

United States Code, is amended— 

(1) in subsection (a)(2), by striking "Any" and inserting 

"The"; 

(2) in subsection (a)(2), by adding at the end the following: 

"Each such arbitration agreement shall specify a maximum 

award that may be issued by the arbitrator and may specify 

other conditions limiting the range of possible outcomes."; 

(3) in subsection (b)— 

(A) by striking "may offer to use arbitration for the 

resolution of issues in controversy, if and inserting "shall 

not offer to use arbitration for the resolution of issues 

in controversy unless"; and 

(B) by striking in paragraph (1) "has authority' and 

inserting "would otherwise have authority"; and 

(4) by adding at the end the following: 

"(c) Prior to using binding arbitration imder this subchapter, 

the head of an agency, in consultation with the Attorney Greneral 

and after taking into account the factors in section 572(b), shall 

issue guidance on the appropriate use of binding arbitration and 

when an officer or employee of the agency has authority to settle 

an issue in controversy through binding arbitration.". 

SEC 9. PERMANENT AUTHORIZATION OF THE ALTERNATIVE DISPUTE 

RESOLUTION PROVISIONS OF TITLE 6, UNITED STATES 

CODE. 

The Administrative Dispute Resolution Act (PubKc Law 101-

552; 104 Stat. 2747; 5 U.S.C. 571 note) is amended by striking 

section 11. 
PUBLIC LAW 104-320—OCT. 19, 1996 110 STAT. 3873 

SEC. 10. AUTHORIZATION OF APPROPRIATIONS. 

(a) IN GENERAL.—Subchapter IV of title 5, United States Code, 

is amended by adding at the end thereof the following new section: 

**§ 584. Authorization of appropriations 

"There are authorized to be appropriated such sums as may 

be necessary to carry out the purposes of this subchapter,". 

(b) TECHNICAL AND CONFORMING AMENDMENT.—The table of 

sections for chapter 5 of title 5, United States Code, is amended 

by inserting after the item relating to section 583 the following: 

"584. Authorization of appropriations.". 

SEC. 11. REAUTHORIZATION OF NEGOTIATED RULEMAKING ACT OF 

1990. 

(a) PERMANENT REAUTHORIZATION.—Section 5 of the Negotiated 

Rulemaking Act of 1990 (Public Law 101-648; 5 U.S.C. 561 note) 

is repealed. 

(b) CLOSURE OF ADMINISTRATIVE CONFERENCE.— 

(1) IN GENERAL.—Section 569 of title 5, United States Code, 

is amended— 

(A) by amending the section heading to read as follows: 

'*§ 569. Encouraging negotiated rulemaking"; and 

(B) by striking subsections (a) through (g) and inserting 

the following: 

"(a) The President shall designate an agency or designate or President, 

establish an interagency committee to facilitate and encourage 

agency use of negotiated rulemaking. An agency that is considering, 

planning, or conducting a negotiated rulemaking may consult with 

such agency or committee for information and assistance. 

"(b) To carry out the purposes of this subchapter, an agency 

planning or conducting a negotiated rulemaking may accept, hold, 

administer, and utilize gifts, devises, and bequests of property, 

both real and personal if that agency's acceptance and use of such 

gifts, devises, or bequests do not create a conflict of interest. Gifts 

and bequests of money and proceeds from sales of other property 

received as gifts, devises, or bequests shall be deposited in the 

Treasury and shall be disbursed upon the order of the head of 

such agency. Property accepted pursuant to this section, and the 

proceedfs thereof, shall be used as nearly as possible in accordance 

with the terms of the gifts, devises, or bequests.". 

(2) TECHNICAL AND CONFORMING AMENDMENT.—The table 

of sections for chapter 5 of title 5, United States Code, is 

amended by striking the item relating to section 569 and inserting the following: 

"569. Encouraging negotiated rulemaking.". 

(c) EXPEDITED HIRING OF CONVENORS AND FACILITATORS.— 

(1) DEFENSE AGENCY CONTRACTS.—Section 2304(c)(3)(C) of 

title 10, United States Code, is amended by inserting "or negotiated rulemaking" after "alternative dispute resolution". 

(2) FEDERAL CONTRACTS.—Section 303(c)(3)(C) of the 

Federal Property and Administrative Services Act of 1949 (41 

U.S.C. 253(c)(3)(C)), is amended by inserting "or negotiated 

rulemaking" after "alternative dispute resolution". 

(d) AUTHORIZATION OF APPROPRIATIONS.— 
110 STAT. 3874 PUBLIC LAW 104-320—OCT. 19, 1996 

(1) IN GENERAL.—Subchapter III of title 5, United States 

Code, is amended by adding at the end thereof the following 

new section: 

^§ 570a. Authorization of appropriations 

'There are authorized to be appropriated such sums as may 

be necessary to carry out the purposes of this subchapter.". 

(2) TECHNICAL AND CONFORMING AMENDMENT.—The table 

of sections for chapter 5 of title 5, United States Code, is 

amended by inserting after the item relating to section 570 

the following: 

"570a. Authorization of appropriations.". 

5 use 563 note. (e) NEGOTIATED RULEMAKING COMMITTEES.—The Director of 

the Office of Management and Budget shall— 

(1) within 180 days of the date of the enactment of this 

Act, take appropriate action to expedite the establishment of 

negotiated rulemaking committees and committees established 

to resolve disputes under the Administrative Dispute Resolution 

Act, including, with respect to negotiated rulemaking committees, eliminating any redundant administrative requirements 

related to filing a committee charter under section 9 of the 

Federal Advisory Committee Act (5 U.S.C. App.) and providing 

public notice of such committee imder section 564 of title 5, 

United States Code; and 

Recommenda- (2) within one year of the date of the enactment of this 

tions. Act, submit recommendations to Congress for any necessary 

legislative changes. 

SEC. 12. JURISDICTION OF THE UNITED STATES COURT OF FEDERAL 

CLAIMS AND THE DISTRICT COURTS OF THE UNITED 

STATES: BID PROTESTS. 

(a) BID PROTESTS.—Section 1491 of title 28, United States 

Code, is amended— 

(1) by redesignating subsection (b) as subsection (c); 

(2) in subsection (a) by striking out paragraph (3); and 

(3) by inserting after subsection (a), the following new 

subsection: 

"(b)(1) Both the Unites States Court of Federsd Claims and 

the district courts of the United States shall have jurisdiction 

to render judgment on an action by an interested party objecting 

to a solicitation by a Federal agency for bids or proposals for 

a proposed contract or to a proposed award or the award of a 

contract or any alleged violation of statute or regulation in connection with a procurement or a proposed procurement. Both the 

United States Court of Federal Claims and the district courts 

of the United States shall have jurisdiction to entertain such an 

action without regard to whether suit is instituted before or after 

the contract is awarded. 

"(2) To afford relief in such an action, the courts may award 

any relief that the court considers proper, including declaratory 

and injimctive relief except that any monetary relief shall be limited 

to bid preparation and proposal costs. 

"(3) In exercising jurisdiction under this subsection, the courts 

shall give due regard to the interests of national defense and 

national security and the need for expeditious resolution of the 

action. 
PUBLIC LAW 104-320—OCT. 19, 1996 110 STAT. 3875 

"(4) In any action under this subsection, the courts shall review 

the agency's decision pursuant to the standards set forth in section 

706 of title 5.". 

(b) EFFECTIVE DATE.—^This section and the amendments made 28 use I49i 

by this section shall take effect on December 31, 1996 and shall note, 

apply to all actions filed on or after that date. 

(c) STUDY.—No earlier than 2 years after the effective date 

of this section, the United States General Accounting Office shall 

undertake a study reggirding the concurrent jurisdiction of the 

district courts of the United States and the Court of Federal Claims 

over bid protests to determine whether concurrent jurisdiction is 

necessary. Such a study shall be completed no later than December 

31, 1999, and shall specifically consider the effect of any proposed 

change on the ability of smaJl businesses to challenge violations 

of Federal procurement law. 

(d) SUNSET.—The jurisdiction of the district courts of the United 28 use 1491 

States over the actions described in section 1491(b)(1) of title 28, "o**. 

United States Code (as amended by subsection (a) of this section) 

shall terminate on January 1, 2001 xinless extended by Congress. 

The savings provisions in subsection (e) shall apply if the bid Applicability, 

protest jurisdiction of the district courts of the United States terminates under this subsection. 

(e) SAVINGS PROVISIONS.— 28 use usi 

(1) ORDERS.—^A termination under subsection (d) shall not note, 

terminate the effectiveness of orders that have been issued 

by a court in connection with an action within the jurisdiction 

of that court on or before December 31, 2000. Such orders 

shall continue in effect according to their terms until modified, 

terminated, superseded, set aside, or revoked by a court of 

competent jurisdiction or by operation of law. 

(2) PROCEEDINGS AND APPLICATIONS.—(A) a termination 

under subsection (d) shall not affect the jurisdiction of a court 

of the United States to continue with any proceeding that 

is pending before the court on December 31, 2000. 

(B) Orders may be issued in any such proceeding, appeals 

may be taken therefrom, and pajrments may be made pursueint 

to such orders, as if such termination had not occurred. An 

order issued in any such proceeding shall continue in effect 

until modified, terminated, superseded, set aside, or revoked 

by a court of competent jurisdiction or by operation of law. 

(C) Nothing in this paragraph prohibits the discontinuance 

or modification of any such proceeding under the same terms 

£ind conditions and to the same extent that proceeding could 

have been discontinued or modified absent such termination. 
110 STAT. 3876 PUBLIC LAW 104-320—OCT. 19, 1996 

(f) NONEXCLUSiviTY OF GAO REMEDIES.—In the event that 

the bid protest jurisdiction of the district courts of the United 

States is terminated pursuant to subsection (d), then section 3556 

of title 31, United States Code, shall be amended by striking "a 

court of the United States or" in the first sentence. 

Approved October 19, 1996. 

LEGISLATIVE HISTORY—H.R. 4194 (S. 1224): 

HOUSE REPORTS: No. 104-245 accompanying S. 1224 (Comm. on Governmental 

Affairs). 

CONGRESSIONAL RECORD, Vol. 142 (1996): 

Sept. 27, considered and passed House. 

Sept. 30, considered and passed Senate, amended. 

Oct. 4, House concurred in Senate amendment.