{"id":27382,"date":"2022-02-17T18:22:48","date_gmt":"2022-02-17T23:22:48","guid":{"rendered":"https:\/\/adr.gov\/?page_id=27382"},"modified":"2022-02-18T15:12:17","modified_gmt":"2022-02-18T20:12:17","slug":"04-statutes","status":"publish","type":"page","link":"https:\/\/adr.gov\/guidance\/adrguide-home\/04-statutes\/","title":{"rendered":"Key ADR Statutes"},"content":{"rendered":"<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:0px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\"><\/style><div class=\"fusion-title title fusion-title-1 fusion-title-text fusion-title-size-two\" style=\"margin-top:0px;margin-right:0px;margin-bottom:31px;margin-left:0px;\"><h2 class=\"title-heading-left\" style=\"margin:0;\">Key ADR Statutes<\/h2><span class=\"awb-title-spacer\"><\/span><div class=\"title-sep-container\"><div class=\"title-sep sep-double sep-solid\" style=\"border-color:#e0dede;\"><\/div><\/div><\/div><div class=\"fusion-text fusion-text-1\"><p>The following statutes lay the foundation for the use of ADR in the field of federal contracts.<\/p>\n<p><u><strong>The Administrative Dispute Resolution Act of 1990 (ADR Act)<\/strong>:<\/u><\/p>\n<p>Institutionalization of ADR in the Federal procurement arena began in the 1990\u2019s when Congress passed the <a href=\"https:\/\/adr.gov\/wp-content\/uploads\/2022\/02\/ADRAof1990-US-Statutes-at-Large.pdf\" target=\"_blank\" rel=\"noopener\">ADR Act, Pub. L. No. 101-552, 104 Stat. 2736<\/a>. \u00a0Congress premised its Act by finding that using\u00a0ADR as an alternative administrative procedures can offer prompt, creative, efficient, and sensible resolutions to claims by and against the government.\u00a0 The ADR Act encouraged Federal agencies to use ADR processes to help resolve disputes and <span lang=\"en\" xml:lang=\"en\">required federal agencies to adopt policies on ADR use. \u00a0<\/span>Of particular interest for this Guide, the sections in the ADR Act provide:<\/p>\n<ul>\n<li><em><strong><u>Section 2<\/u><\/strong>: \u00a0<\/em>The Congressional findings supporting the use of ADR.<\/li>\n<li><u><strong><em>Section 3<\/em><\/strong><\/u>: \u00a0Required agencies to review their contracts and grants, and consider whether standard language should be updated to address ADR. \u00a0<em>See\u00a0<\/em><a href=\"https:\/\/adr.gov\/guidance\/adrguide-home\/ch14\/\">Ch.14, FAR Contract Claims<\/a>\u00a0(reflecting changes to standard FAR language). \u00a0It also required agencies to adopt an ADR policy.\u00a0 In creating those policies, agencies were to look at how ADR could be used in formal and informal adjudications, rulemakings, enforcement actions, licensing decisions, contract administration, and litigation brought by or against the agency.\u00a0\u00a0To better make use of ADR, each agency is required to have a senior agency official designated as the “Dispute Resolution Specialist” (DRS), in charge of implementing the new policies as well as enforcing mandatory regular training in ADR for employees.<\/li>\n<li><u><strong><em>Section 4<\/em><\/strong><\/u>: \u00a0Amended Chapter 5 of Title V of the United States Code in several ways:\n<ul>\n<li>Granted general authority to use ADR and set forth considerations for not using it. \u00a0<em>See<\/em>\u00a0<a href=\"https:\/\/adr.gov\/guidance\/adrguide-home\/ch22\/\">Ch.22, ADR for This Case<\/a>?<\/li>\n<li>Defined neutrals and how they can be obtained. \u00a0<em>See<\/em>\u00a0<a href=\"https:\/\/adr.gov\/guidance\/adrguide-home\/ch24\/\">Ch.24, Neutrals<\/a>.<\/li>\n<li>Defined the scope of confidentiality. \u00a0<em>See<\/em>\u00a0<a href=\"https:\/\/adr.gov\/guidance\/adrguide-home\/ch29\/\">Ch.29, Confidentiality<\/a>.<\/li>\n<li>Established conditions allowing the use of arbitration. \u00a0<em>See<\/em> <a href=\"https:\/\/adr.gov\/guidance\/adrguide-home\/ch21\/\">Ch.21, Arbitration<\/a>.<\/li>\n<\/ul>\n<\/li>\n<li><u><strong><em>Section 6<\/em><\/strong><\/u>: \u00a0Amended the Contract Disputes Act (CDA) to address ADR. \u00a0<em>The amendments are now found in\u00a0<\/em>41 USC\u00a07103 (h)) (formerly codified at 41 USC\u00a0605).<\/li>\n<\/ul>\n<p>The last section of the ADR Act contained a sunset provision, effective October 1, 1995, which terminated agencies’ general authority to use ADR, as well as the amendments made to the United States Code.<\/p>\n<p><strong><u>The Administrative Dispute Resolution Act of 1996 (ADRA of 1996)<\/u>:<\/strong><\/p>\n<p>Approximately six years after enactment of the original ADR Act, President Clinton signed into law the <a href=\"https:\/\/adr.gov\/wp-content\/uploads\/2022\/02\/ADRAof1996-US-Statutes-at-Large.pdf\" target=\"_blank\" rel=\"noopener\">ADRA of 1996, Pub.L. No. 101-320<\/a> (codified at <a href=\"https:\/\/adr.gov\/wp-content\/uploads\/2022\/02\/ADRA-Codification2013.pdf\" target=\"_blank\" rel=\"noopener\">5 USC\u00a0571, et seq.<\/a>) \u00a0The ADRA of 1996 removed the sunset provision the original ADR Act, and\u00a0made several other adjustments to the\u00a0original\u00a0statute.\u00a0\u00a0Of particular interest for this guide:<\/p>\n<ul>\n<li><em><strong><u>Section 3<\/u><\/strong><\/em>: \u00a0Adjusted the confidentiality provisions by creating an exemption from the Freedom of Information Act. \u00a0<em>See<\/em>\u00a0<a href=\"https:\/\/adr.gov\/guidance\/adrguide-home\/ch29\/\">Ch.29, Confidentiality<\/a>.<\/li>\n<li><strong><em><u>Section 4<\/u><\/em>: \u00a0<\/strong>Authorized the Attorney General to establish what is now the <a href=\"http:\/\/www.adr.gov\" target=\"_blank\" rel=\"nofollow noopener\">Interagency ADR Working Group<\/a> “to facilitate and encourage agency use” of ADR.<\/li>\n<li><u><strong><em>Section 7<\/em><\/strong><\/u>: \u00a0Authorized non-competitive acquisition procedures (i.e., sole source) to obtain the neutral services for use in alternative dispute resolution processes. \u00a0<em>See<\/em> <a href=\"https:\/\/adr.gov\/guidance\/adrguide-home\/ch24\/\">Ch.24, Neutrals<\/a>.<\/li>\n<li><strong><em><u>Section 8<\/u>:<\/em><\/strong> \u00a0Removed prior authority vested in the head of an agency to vacate an award, and instead required limitations on the amount that can be awarded.\u00a0 <em>See<\/em> <a href=\"https:\/\/adr.gov\/guidance\/adrguide-home\/ch21\/\">Ch.21, Arbitration<\/a>.<\/li>\n<\/ul>\n<p><strong><u>The Contract Disputes Act (CDA)<\/u><\/strong>:<\/p>\n<p>The ADRA of 1996 amended the CDA to state that a contracting officer and a contractor may use \u201cany alternative means of dispute resolution [under the ADRA of 1996] . . . or other mutually agreeable procedures, for resolving claims.\u201d\u00a0 41 USC\u00a07103(h)(1) (previously codified at 41 USC 605).\u00a0 Requirements for claim certification remain in place.\u00a0 <em>Id<\/em>. at 7103(h)(2).\u00a0 The CDA was also amended to require that when either party rejects the other party\u2019s request for ADR proceedings the rejecting party must provide written \u201cspecific reasons\u201d for rejecting the request.\u00a0 <em>Id<\/em>. at 7103(h)(3).<\/p>\n<p><strong><u>The Alternative Dispute Resolution Act of 1998 (ADR Act of 1998)<\/u><\/strong>:<\/p>\n<p>The <a href=\"https:\/\/adr.gov\/wp-content\/uploads\/2022\/02\/ADRAof1998-US-Statutes-at-Large.pdf\" target=\"_blank\" rel=\"noopener\">ADR Act of 1998<\/a> required federal trial courts to make ADR programs available to litigants. \u00a0The U.S. Court of Federal Claims has an \u201cADR Automatic Referral Program\u201d in place as a result of the 1998 Act.\u00a0 At the Court of Federal Claims, once parties notify their assigned judge of their desire to enter into ADR, the judge forwards their request to the clerk of the Court, and a new judge as a settlement judge or third-party neutral is assigned to the case.\u00a0 During the ADR processes, the case remains on the docket of the original assigned judge, and is removed only when the clerk reports it as settled.<\/p>\n<div><strong>LEARN MORE<\/strong><\/div>\n<div><a href=\"http:\/\/www.uscfc.uscourts.gov\/alternative-dispute-resolution\" target=\"_blank\" rel=\"nofollow noopener\">Alternative Dispute Resolution at the U.S. Court of Federal Claims<\/a><\/div>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":6,"featured_media":0,"parent":27194,"menu_order":8,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"_links":{"self":[{"href":"https:\/\/adr.gov\/wp-json\/wp\/v2\/pages\/27382"}],"collection":[{"href":"https:\/\/adr.gov\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/adr.gov\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/adr.gov\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/adr.gov\/wp-json\/wp\/v2\/comments?post=27382"}],"version-history":[{"count":0,"href":"https:\/\/adr.gov\/wp-json\/wp\/v2\/pages\/27382\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/adr.gov\/wp-json\/wp\/v2\/pages\/27194"}],"wp:attachment":[{"href":"https:\/\/adr.gov\/wp-json\/wp\/v2\/media?parent=27382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}