Administrative Dispute Resolution Act of 1996
PL 104-320 (H.R.4194), enacted 10/19/1996

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 "arbitra-
tion, 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 pro-
vided 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 inter-
agency 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 estab-
Hshed 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 insert-
ing 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 nego-
tiated 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 commit-
tees, 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 connec-
tion 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 termi-
nates 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.