{"id":27356,"date":"2022-02-17T18:09:37","date_gmt":"2022-02-17T23:09:37","guid":{"rendered":"https:\/\/adr.gov\/?page_id=27356"},"modified":"2022-02-18T14:09:01","modified_gmt":"2022-02-18T19:09:01","slug":"ch14","status":"publish","type":"page","link":"https:\/\/adr.gov\/guidance\/adrguide-home\/ch14\/","title":{"rendered":"Ch.14 – FAR Contract Claims"},"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;\">Ch.14 – FAR Contract Claims<\/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>Claims are distinct from protests in that they pertain to contract performance rather than award, and they may be filed by either the agency or the contractor.\u00a0 Contractor disputes regarding contract performance and demands for payment are most often initially filed with the contracting officer\u00a0as a request for equitable adjustment (REA), although this initial step is not mandatory.\u00a0 If the contractor skips this step, or the REA is denied, the contractor files a claim with the contracting officer.\u00a0\u00a0Upon an adverse decision, or in the absence of a decision, the contractor may either appeal the claim to the appropriate board of contract appeals within 90 days or to the U.S. Court of Federal Claims within one year.<\/p>\n<p><a href=\"https:\/\/www.acquisition.gov\/?q=\/browse\/far\/33\" target=\"_blank\" rel=\"nofollow noopener\">FAR Subpart 33.2<\/a> lays out the claim process and strongly encourages the use of ADR. \u00a0Consider:<\/p>\n<ul>\n<li>FAR\u00a033.201 – Defines ADR<\/li>\n<li>FAR\u00a033.204 – Sets forth the government’s policy and encourages agencies to use ADR procedures “to the maximum extent possible.”<\/li>\n<li>FAR\u00a033.210 – Authorizes Contracting Officers to use ADR<\/li>\n<li><a href=\"https:\/\/adr.gov\/guidance\/adrguide-home\/14-far33-214\/\">FAR\u00a033.214<\/a> – Explains in great detail the use of ADR in the claims context, and includes:\n<ul>\n<li>Procedures requiring written explanations when ADR is rejected<\/li>\n<li>Provisions allowing the use of a neutral<\/li>\n<li>Guidance on confidentiality<\/li>\n<li>Guidance on arbitration<\/li>\n<\/ul>\n<\/li>\n<li>FAR 33.215 – Prescribes using FAR 52.233-1, Disputes, as a clause in contracts, and in turn, this clause echoes the FAR policy regarding the use of ADR.<\/li>\n<\/ul>\n<p>Parties and practitioners should also investigate whether the contracting agency has more specific regulations in the form of a FAR Supplement or published as an agency order. \u00a0NASA, for example, does both. \u00a0Section 1833.210 of the NASA FAR Supplement directs the reader to NASA Directive 2010.2, which encourages the use of voluntary ADR.<\/p>\n<p>Using ADR at the claim stage–before performance is complete, before a COFD, and before an appeal–has several advantages. \u00a0First, the parties might still have a\u00a0positive\u00a0working relationship that will benefit the ADR process. \u00a0Second, time related expenses\u00a0(interest, attorneys fees, etc.) will be mitigated, meaning available funds can be applied to fixing the real problem at hand. \u00a0Third, as explained in <a href=\"https:\/\/adr.gov\/guidance\/adrguide-home\/28-owacs\/\">Chapter 28<\/a>, creative win-win resolutions are more readily available the earlier the parties engage in problem solving.<\/p>\n<p>ADR at the claim stage will not be a waste of time even if no resolution is achieved. \u00a0At the end of the process, both parties will have more information about the dispute. \u00a0This information will allow them to make informed business decisions about pursuing an appeal. \u00a0It will likely streamline the issues and narrow the need for discovery. \u00a0It also may foster a good working relationship between the representatives so they can work well together on the administrative side of the appeal, while nevertheless zealously representing their party’s legal rights.<\/p>\n<p>Both the Armed Services Board of Contract Appeals (<a href=\"http:\/\/www.asbca.mil\/Rules\/forms\/Final%20Rule%20Formatting%20pgl.pdf#page=24\" target=\"_blank\" rel=\"nofollow noopener\">ASBCA<\/a>) and Civilian Board of Contract Appeals (<a href=\"https:\/\/cbca.gov\/\" target=\"_blank\" rel=\"nofollow noopener\">CBCA<\/a>) offer the services of available judges to serve as neutrals before\u00a0the claim stage.<\/p>\n<\/div><div 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