Administrative Dispute Resolution Act
PL 101-552 (H.R.2497), enacted 11/15/1990

104 STAT. 2736 
PUBLIC LAW 101-552—NOV. 15, 1990 
Public Law 101-552 
101st Congress 
An Act 
Nov 15 1990 
'^^ authorize and encourage Federal agencies to use mediation, conciliation, arbitra-
tion, and other techniques for the prompt and informal resolution of disputes, and 
[H.R. 2497] 
f^j. ^^.jjgj. purposes. 
Be it enacted by the Senate and House of Representatives of the 
Administrative 
United States of America in Congress assembled. 
Dispute 
Resolution Act. 
SECTION 1. SHORT TITLE. 
5 u s e 581 note. 
This Act may be cited as the "Administrative Dispute Resolution 
Act". 
5 u s e 581 note. 
SEC. 2. FINDINGS. 
The Congress finds that— 
(1) administrative procedure, as embodied in chapter 5 of title 
5, United States Code, and other statutes, is intended to offer a 
prompt, expert, and inexpensive means of resolving disputes as 
an alternative to litigation in the Federal courts; 
(2) administrative proceedings have become increasingly 
formal, costly, and lengthy resulting in unnecessary expendi-
tures of time and in a decreased likelihood of achieving consen-
sual resolution of disputes; 
(3) alternative means of dispute resolution have been used in 
the private sector for many years and, in appropriate cir-
cumstances, have 3delded decisions that are faster, less expen-
sive, and less contentious; 
(4) such alternative means can lead to more creative, efficient, 
and sensible outcomes; 
(5) such alternative means may be used advantageously in a 
wide variety of administrative programs; 
(6) explicit authorization of the use of well-tested dispute 
resolution techniques will eliminate ambiguity of agency 
authority under existing law; 
(7) Federal agencies may not only receive the benefit of 
techniques that were developed in the private sector, but may 
also take the lead in the further development and refinement of 
such techniques; and 
(8) the availability of a wide range of dispute resolution 
procedures, and an increased understanding of the most effec-
tive use of such procedures, will enhance the operation of the 
Government and better serve the public. 
5 u s e 581 note. 
SEC. 3. PROMOTION OF ALTERNATIVE MEANS OF DISPUTE RESOLUTION. 
(a) PROMULGATION OF AGENCY POUCY.—Each agency shall adopt a 
policy that addresses the use of alternative means of dispute resolu-
tion and case management. In developing such a policy, each agency 
shall— 
(1) consult with the Administrative Conference of the United 
States and the Federal Mediation and Conciliation Service; and 
PUBLIC LAW 101-552—NOV. 15, 1990 
104 STAT. 2737 
(2) examine alternative means of resolving disputes in connec-
tion with— 
(A) formal and informal adjudications; 
(B) rulemakings; 
(C) enforcement actions; 
(D) issuing and revoking licenses or permits; 
(E) contract administration; 
(F) litigation brought by or against the agency; and 
(G) other agency actions. 
(b) DISPUTE RESOLUTION SPECIAUSTS.—The head of each agency 
shall designate a senior official to be the dispute resolution specialist 
of the agency. Such official shall be responsible for the implementa-
tion o
f
— 
(1) the provisions of this Act and the amendments made by 
this Act; and 
(2) the agency policy developed under subsection (a). 
(c) TRAINING.—Each agency shall provide for training on a regular 
basis for the dispute resolution specialist of the agency and other 
employees involved in implementing the policy of the agency devel-
oped under subsection (a). Such training should encompass the 
theory and practice of negotiation, mediation, arbitration, or related 
techniques. The dispute resolution specialist shall periodically rec-
ommend to the agency head agency employees who would benefit 
from similar training. 
(d) PROCEDURES FOR GRANTS AND CONTRACTS.— 
(1) Each agency shall review each of its standard agreements 
for contracts, grants, and other assistance and shall determine 
whether to amend any such standard agreements to authorize 
and encourage the use of alternative means of dispute 
resolution. 
(2)(A) Within 1 year after the date of the enactment of this 
Act, the Federal Acquisition Regulation shall be amended, as 
necessary, to carry out this Act and the amendments made by 
this Act. 
(B) For purposes of this section, the term "Federal Acquisition 
Regulation" means the single system of Government-wide 
procurement regulation referred to in section 6(a) of the Office 
of Federal Procurement Policy Act (41 U.S.C. 405(a)). 
SEC. 4. ADMINISTRATIVE PROCEDURES. 
(a) ADMINISTRATIVE HEARINGS.—Section 556(c) of title 5, United 
States Code, is amended— 
(1) in paragraph (6) by inserting before the semicolon at the 
end thereof the following: "or by the use of alternative means of 
dispute resolution as provided in subchapter IV of this chapter"; 
and 
(2) by redesignating paragraphs (7) through (9) as paragraphs 
(9) through (11), respectively, and inserting after paragraph (6) 
the following new paragraphs: 
"(7) inform the parties as to the availability of one or more 
alternative means of dispute resolution, and encourage use of 
such methods; 
"(8) require the attendance at any conference held pursuant 
to paragraph (6) of at least one representative of each party who 
has authority to negotiate concerning resolution of issues in 
controversy; . 
104 STAT. 2738 
PUBLIC LAW 101-552—NOV. 15, 1990 
(b) ALTERNATIVE MEANS OF DISPUTE RESOLUTION.—Chapter 5 of 
title 5, United States Code, is amended by adding at the end the 
following new subchapter: 
"SUBCHAPTER IV—ALTERNATIVE MEANS OF DISPUTE 
RESOLUTION IN THE ADMINISTRATIVE PROCESS 
"§581. Definitions 
"For the purposes of this subchapter, the term— 
"(1) 'agency' has the same meaning as in section 551(1) of this 
title; 
"(2) 'administrative program' includes a Federaf function 
which involves protection of the public interest and the deter-
mination of rights, privileges, and obligations of private persons 
through rule making, adjudication, licensing, or investigation, 
as those terms are used in subchapter II of this chapter; 
"(3) 'alternative means of dispute resolution' means any 
procedure that is used, in lieu of an adjudication as defined in 
section 551(7) of this title, to resolve issues in controversy, 
including but not limited to, settlement negotiations, concilia-
tion, facilitation, mediation, factfinding, minitrials, and arbitra-
tion, or any combination thereof; 
"(4) 'award' means any decision by an arbitrator resolving the 
issues in controversy; 
"(5) 'dispute resolution communication' means any oral or 
written communication prepared for the purposes of a dispute 
resolution proceeding, including any memoranda, notes or work 
product of the neutral, parties or nonparty participant; except 
that a written agreement to enter into a dispute resolution 
proceeding, or final written agreement or arbitral award 
reached as a result of a dispute resolution proceeding, is not a 
dispute resolution communication; 
"(6) 'dispute resolution proceeding' means any process in 
which an alternative means of dispute resolution is used to 
resolve an issue in controversy in which a neutral is appointed 
and specified parties participate; 
"(7) 'in confidence' means, with respect to information, that 
the information is provided— 
"(A) with the expressed intent of the source that it not be 
disclosed; or 
"(B) under circumstances that would create the reason-
able expectation on behalf of the source that the informa-
tion will not be disclosed; 
"(8) 'issue in controversy' means an issue which is material to 
a decision concerning an administrative program of an agency, 
and with which there is disagreement between the agency and 
persons who would be substantially affected by the decision but 
shall not extend to matters specified under the provisions of 
sections 2302 and 7121(c) of title 5; 
"(9) 'neutral' means an individual who, with respect to an 
issue in controversy, functions specifically to aid the parties in 
resolving the controversy; 
"(10) 'party' means— 
"(A) for a proceeding with named parties, the same as in 
section 551(3) of this title; and 
PUBLIC LAW 101-552—NOV. 15, 1990 
104 STAT. 2739 
"(B) for a proceeding without named parties, a person 
who will be significantly affected by the decision in the 
proceeding and who participates in the proceeding; 
"(11) 'person' has the same meaning as in section 551(2) of this 
title; and 
"(12) 'roster' means a list of persons qualified to provide 
services as neutrals. 
"§582. General authority 
* 
"(a) An agency may use a dispute resolution proceeding for the 
resolution of an issue in controversy that relates to an administra-
tive program, if the parties agree to such proceeding. 
"(b) An agency shall consider not using a dispute resolution 
proceeding i
f
— 
"(1) a definitive or authoritative resolution of the matter is 
required for precedential value, and such a proceeding is not 
likely to be accepted generally as an authoritative precedent; 
"(2) the matter involves or may bear upon significant ques-
tions of Government policy that require additional procedures 
before a final resolution may be made, and such a proceeding 
would not likely serve to develop a recommended policy for the 
agency; 
"(3) maintaining established policies is of special importance, 
so that variations among individual decisions are not increased 
and such a proceeding would not likely reach consistent results 
among individual decisions; 
"(4) the matter significantly affects persons or organizations 
who are not parties to the proceeding; 
"(5) a full public record of the proceeding is important, and a 
dispute resolution proceeding cannot provide such a record; and 
"(6) the agency must maintain continuing jurisdiction over 
the matter with authority to alter the disposition of the matter 
in the light of changed circumstances, and a dispute resolution 
proceeding would interfere with the agency's fulfilling that 
requirement. 
"(c) Alternative means of dispute resolution authorized under this 
subchapter are voluntary procedures which supplement rather than 
limit other available agency dispute resolution techniques. 
"§ 583. Neutrals 
"(a) A neutral may be a permanent or temporary officer or 
employee of the Federal Government or any other individual who is 
acceptable to the parties to a dispute resolution proceeding. A 
neutral shall have no official, financial, or personal conflict of 
interest with respect to the issues in controversy, unless such in-
terest is fully disclosed in writing to all parties and all parties agree 
that the neutral may serve. 
"(b) A neutral who serves as a conciliator, facilitator, or mediator 
serves at the will of the parties. 
"(c) In consultation with the Federal Mediation and Conciliation 
Service, other appropriate Federal agencies, and 
professional 
organizations experienced in matters concerning dispute resolution, 
the Administrative Conference of the United States shall— 
"(1) establish standards for neutrals (including experience, 
training, affiliations, diligence, actual or potential conflicts of 
interest, and other qualifications) to which agencies may refer; 
contracts. 
104 STAT. 2740 
PUBLIC LAW 101-552—NOV. 15, 1990 
"(2) maintain a roster of individuals who meet such standards 
and are otherwise qualified to act as neutrals, which shall be 
made available upon request; 
^J^^ernment 
"(3) enter into contracts for the services of neutrals that may 
be used by agencies on an elective basis in dispute resolution 
proceedings; and 
"(4) develop procedures that permit agencies to obtain the 
services of neutrals on an expedited basis. 
"(d) An agency may use the services of one or more employees of 
other agencies to serve as neutrals in dispute resolution proceedings. 
The agencies may enter into an interagency agreement that pro-
vides for the reimbursement by the user agency or the parties of the 
full or partial cost of the services of such an employee. 
"(e) Any agency may enter into a contract with any person on a 
roster established under subsection (c)(2) or a roster maintained by 
other public or private organizations, or individual for services as a 
neutral, or for training in connection with alternative means of 
dispute resolution. The parties in a dispute resolution proceeding 
shall agree on compensation for the neutral that is fair and reason-
able to the Government. 
"§584. Confidentiality 
"(a) Except as provided in subsections (d) and (e), a neutral in a 
dispute resolution proceeding shall not voluntarily disclose or 
through discovery or compulsory process be required to disclose any 
information concerning any dispute resolution communication or 
any communication provided in confidence to the neutral, unless— 
"(1) all parties to the dispute resolution proceeding and the 
neutral consent in writing, and, if the dispute resolution 
communication was provided by a nonparty participant, that 
participant also consents in writing; 
"(2) the dispute resolution communication has already been 
made public; 
"(3) the dispute resolution communication is required by stat-
ute to be made public, but a neutral should make such commu-
nication public only if no other person is reasonably available to 
disclose the communication; or 
"(4) a court determines that such testimony or disclosure is 
necessary to— 
"(A) prevent a manifest injustice; 
"(B) help establish a violation of law; or 
"(C) prevent harm to the public health or safety, 
of sufficient magnitude in the particular case to outweigh the 
integrity of dispute resolution proceedings in general by 
reducing the confidence of parties in future cases that their 
communications will remain confidential. 
"GJ) A party to a dispute resolution proceeding shall not volun-
tarily disclose or through discovery or compulsory process be 
required to disclose any information concerning any dispute resolu-
tion communication, unless— 
"(1) the communication was prepared by the party seeking 
disclosure; 
"(2) all parties to the dispute resolution proceeding consent in 
writing; 
"(3) the dispute resolution communication has already been 
made public; 
PUBLIC LAW 101-552—NOV. 15, 1990 
104 STAT. 2741 
"(4) the dispute resolution communication is required by stat-
ute to be made public; 
"(5) a court determines that such testimony or disclosure is 
necessary to— 
"(A) prevent a manifest injustice; 
"(B) help establish a violation of law; or 
"(C) prevent harm to the public health and safety, 
of sufficient magnitude in the particular case to outweigh the 
integrity of dispute resolution proceedings in general by reduc-
ing the confidence of parties in future cases that their commu-
nications will remain confidential; 
"(6) the dispute resolution communication is relevant to 
determining the existence or meaning of an agreement or 
award that resulted from the dispute resolution proceeding or to 
the enforcement of such an agreement or award; or 
(7) the dispute resolution communication was provided to or 
was available to all parties to the dispute resolution proceedinjg. 
"(c) Any dispute resolution communication that is disclosed in 
violation of subsection (a) or (b), shall not be admissible in any 
proceeding relating to the issues in controversy with respect to 
which the communication was made. 
"(d) The parties may agree to alternative confidential procedures 
for disclosures by a neutral. Upon such agreement the parties shall 
inform the neutral before the commencement of the dispute resolu-
tion proceeding of any modifications to the provisions of subsection 
(a) that will govern the confidentiality of the dispute resolution 
proceeding. If the parties do not so inform the neutral, subsection (a) 
shall apply. 
"(e) If a demand for disclosure, by way of discovery request or 
other legal process, is made upon a neutral regarding a dispute 
resolution communication, the neutrgd shall make reasonable efforts 
to notify the parties and any affected nonparty participants of the 
demand. Any party or affected nonparty participant who receives 
such notice and within 15 calendar days does not offer to defend a 
refusal of the neutral to disclose the requested information shall 
have waived any objection to such disclosure. 
"(f) Nothing in this section shall prevent the discovery or 
admissibility of any evidence that is otherwise discoverable, merely 
because the evidence was presented in the course of a dispute 
resolution proceeding. 
"(g) Subsections (a) and (b) shall have no effect on the information 
and data that are necessary to document an agreement reached or 
order issued pursuant to a dispute resolution proceeding. 
"(h) Subsections (a) and (b) shall not prevent the gathering of 
information for research or educational purposes, in cooperation 
with other agencies, governmental entities, or dispute resolution 
programs, so long as the parties and the specific issues in con-
troversy are not identifiable. 
"(i) Subsections (a) and (b) shall not prevent use of a dispute 
resolution communication to resolve a dispute between the neutral 
in a dispute resolution proceeding and a party to or participant in 
such proceeding, so long as such dispute resolution communication 
is disclosed only to the extent necessary to resolve such dispute. 
"(j) This section shall not be considered a statute specifically 
exempting disclosure under section 552(bX3) of this title. 
104 STAT. 2742 
PUBLIC LAW 101-552—NOV. 15, 1990 
"§ 585. Authorization of arbitration 
"(aXD Arbitration may be used as an alternative means of dispute 
resolution whenever all parties consent. Consent may be obtained 
either before or after an issue in controversy has arisen. A party 
may agree to— 
"(A) submit only certain issues in controversy to arbitration; 
or 
"(B) arbitration on the condition that the award must be 
within a range of possible outcomes. 
"(2) Any arbitration agreement that sets forth the subject matter 
submitted to the arbitrator shall be in writing. 
"(3) An agency may not require any person to consent to arbitra-
tion as a condition of entering into a contract or obtaining a benefit. 
"(b) An officer or employee of an Eigency may offer to use arbitra-
tion for the resolution of issues in controversy, if such officer or 
employee— 
"(1) has authority to enter into a settlement concerning the 
matter; or 
"(2) is otherwise specifically authorized by the agency to 
consent to the use of arbitration. 
"§ 586. Enforcement of arbitration agreements 
"An agreement to arbitrate a matter to which this subchapter 
applies is enforceable pursuant to section 4 of title 9, and no action 
brought to enforce such an agreement shall be dismissed nor shall 
relief therein be denied on the grounds that it is against the United 
States or that the United States is an indispensable party. 
"§587. Arbitrators 
"(a) The parties to an arbitration proceeding shall be entitled to 
participate in the selection of the arbitrator. 
"(b) The arbitrator shall be a neutral who meets the criteria of 
section 583 of this title. 
"§ 588. Authority of the arbitrator 
"An arbitrator to whom a dispute is referred under this sub-
chapter may— 
"(1) regulate the course of and conduct arbitral hearings; 
"(2) administer oaths and affirmations; 
"(3) compel the attendance of witnesses and production of 
evidence at the hearing under the provisions of section 7 of title 
9 only to the extent the agency involved is otherwise authorized 
by law to do so; and 
"(4) make awards. 
"§ 589. Arbitration proceedings 
"(a) The arbitrator shall set a time and place for the hearing on 
the dispute and shall notify the parties not less than 5 days before 
the hearing. 
Records. 
"(b) Any party wishing a record of the hearing shall— 
"(1) be responsible for the preparation of such record; 
"(2) notify the other parties and the arbitrator of the prepara-
tion of such record; 
"(3) furnish copies to all identified parties and the arbitrator; 
and 
PUBLIC LAW 101-552—NOV. 15, 1990 
104 STAT. 2743 
"(4) pay all costs for such record, unless the parties agree 
otherwise or the arbitrator determines that the costs should be 
apportioned. 
"(c)(1) The parties to the arbitration are entitled to be heard, to 
present evidence material to the controversy, and to cross-examine 
witnesses appearing at the hearing. 
"(2) The arbitrator may, with the consent of the parties, conduct 
all or part of the hearing by telephone, television, computer, or 
other electronic means, if each party has an opportunity to 
participate. 
"(3) The hearing shall be conducted expeditiously and in an 
informal manner. 
"(4) The arbitrator may receive any oral or documentary evidence, 
except that irrelevant, immaterial, unduly repetitious, or privileged 
evidence may be excluded by the arbitrator. 
"(5) The arbitrator shall interpret and apply relevant statutory 
and regulatory requirements, legal precedents, and policy directives. 
"(d) No interested person shall make or knowingly cause to be 
made to the arbitrator an unauthorized ex parte communication 
relevant to the merits of the proceeding, unless the parties agree 
otherwise. If a communication is made in violation of this subsec-
tion, the arbitrator shall ensure that a memorandum of the commu-
nication is prepared and made a part of the record, and that an 
opportunity for rebuttal is allowed. Upon receipt of a communica-
tion made in violation of this subsection, the arbitrator may, to the 
extent consistent with the interests of justice and the policies under-
lying this subchapter, require the offending party to show cause why 
the claim of such party should not be resolved against such party as 
a result of the improper conduct. 
"(e) The arbitrator shall make the award within 30 days after the 
close of the hearing, or the date of the filing of any briefs authorized 
by the arbitrator, whichever date is later, unless— 
"(1) the parties agree to some other time limit; or 
"(2) the agency provides by rule for some other time limit. 
"§ 590. Arbitration awards 
"(a)(1) Unless the agency provides otherwise by rule, the award in 
an arbitration proceeding under this subchapter shall include a 
brief, informal discussion of the factual and legal basis for the 
award, but formal findings of fact or conclusions of law shall not be 
required. 
"(2) The prevailing parties shall file the award with all relevant 
agencies, along with proof of service on all parties. 
"(b) The award in an arbitration proceeding shall become final 30 
days after it is served on all parties. Any agency that is a party to 
the proceeding may extend this 30-day period for an additional 30-
day period by serving a notice of such extension on all other parties 
before the end of the first 30-day period. 
"(c) The head of any agency that is a party to an arbitration 
proceeding conducted under this subchapter is authorized to termi-
nate the arbitration proceeding or vacate any award issued pursu-
ant to the proceeding before the award becomes final by serving on 
all other parties a written notice to that effect, in which case the 
award shall be null and void. Notice shall be provided to all parties 
to the arbitration proceeding of any request by a party, nonparty 
participant or other person that the agency head terminate the 
arbitration proceeding or vacate the award. An employee or agent 
104 STAT. 2744 
PUBLIC LAW 101-552—NOV. 15, 1990 
engaged in the performance of investigative or prosecuting func-
tions for an agency may not, in that or a factually relat^ case, 
advise in a decision under this subsection to terminate an arbitra-
tion proceeding or to vacate an arbitral award, except as witness or 
counsel in public proceedings. 
"(d) A final award is binding on the parties to the arbitration 
proceeding, and may be enforced pursuant to sections 9 through 13 
of title 9. No action brought to enforce such an award sh^l be 
dismissed nor shall relief therein be denied on the grounds thait it is 
against the United States or that the United States is an indispen-
sable party. 
"(e) An award entered under this subchapter in an arbitration 
proceeding may not serve as an estoppel in any other proceeding for 
any issue that was resolved in the proceeding. Such an award also 
may not be used as precedent or otherwise be considered in any 
factually unrelated proceeding, whether conducted under this sub-
chapter, by an agency, or in a court, or in any other arbitration 
proceeding. 
"(f) An arbitral award that is vacated under subsection (c) shall 
not be admissible in any proceeding relating to the issues in con-
troversy with respect to which the award was made. 
"(g) If an agency head vacates an award under subsection (c), a 
party to the arbitration (other than the United States) may within 
30 days of such action petition the agency head for an award of 
attorney fees and expenses (as defined in section 504(bXlXA) of this 
title) incurred in connection with the arbitration proceeding. The 
\ 
agency head shall award the petitioning party those fees and ex-
penses that would not have been incurred in the absence of such 
arbitration proceeding, unless the agency head or his or her des-
ignee finds that special circumstances make such an award unjust. 
The procedures for reviewing applications for awards shall, where 
appropriate, be consistent with those set forth in subsection (aX2) 
and (3) of section 504 of this title. Such fees and expenses shall be 
paid from the funds of the agency that vacated the award. 
"§ 591. Judicial Review 
"(a) Notwithstanding any other provision of law, any person 
adversely affected or aggrieved by an award made in an arbitration 
proceeding conducted under this subchapter may bring an action for 
review of such award only pursuant to the provisions of sections 9 
through 13 of title 9. 
"(bXD A decision by an agency to use or not to use a dispute 
resolution proceeding under this subchapter shall be committed to 
the discretion of the agency and shall not be subject to judicial 
review, except that arbitration shall be subject to judicial review 
under section 10(b) of title 9. 
! 
"(2) A decision by the head of an agency under section 590 to 
terminate an arbitration proceeding or vacate an arbitral award 
shall be committed to the discretion of the agency and shall not be 
subject to judicial review. 
"§ 592. Compilation of information 
"The Chairman of the Administrative Conference of the United 
States shall compile and maintain data on the use of alternative 
means of dispute resolution in conducting agency proceedings. Agen-
cies shall, upon the request of the Chairman of the Administrative 
PUBLIC LAW 101-552—NOV. 15, 1990 
104 STAT. 2745 
Conference of the United States, supply such information as is 
required to enable the Chairman to comply with this section. 
"§593. Support services 
"For the purposes of this subchapter, an eigency may use (with or 
without reimbursement) the services and facilities of other Federal 
agencies, public and private organizations and agencies, and individ-
uals, with the consent of such agencies, organizations, and individ-
uals. An agency may accept voluntary and uncompensated services 
for purposes of this subchapter without regard to the provisions of 
section 1342 of title 31.". 
(c) TECHNICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 5 of title 5, United States Code, is amended by 
adding at the end thereof the following: 
"SUBCHAPTER rv—ALTEKNATIVK MEANS OF DISPUTE RESOLUTION IN THE ADMINISTRATIVE 
PROCESS 
"581. Definitions. 
"582. General authority. 
"583. Neutrals. 
"584. Confidentiality. 
"585. Authorization of arbitration. 
"586. Enforcement of arbitration agreements. 
"587. Arbitrators. 
"588. Authority of the arbitrator. 
"589. Arbitration proceedings. 
"590. Arbitration awards. 
"591. Judicial review. 
"592. Compilation of information. 
"593. Support services.". 
SEC. 5. JUDICIAL REVIEW OF ARBITRATION AWARDS. 
Section 10 of title 9, United States Code, is amended— 
(1) by redesignating subsections (a) through (e) as paragraphs 
(1) through (5), respectively; 
(2) by striking out "In either" and inserting in lieu thereof 
"(a) In any"; and 
(3) by adding at the end thereof the following: 
"Qo) The United States district court for the district wherein an 
award was made that was issued pursuant to section 590 of title 5 
may make an order vacating the award upon the application of a 
person, other than a party to the arbitration, who is adversely 
affected or aggrieved by the award, if the use of arbitration or the 
award is clearly inconsistent with the factors set forth in section 582 
of title 5.". 
SEC. 
6
. 
GOVERNMENT 
CONTRACT 
CLAIMS. 
41 
USC 
6
0
5
. 
(a) ALTERNATIVE MEANS OF DISPUTE RESOLUTION.—Section 6 of the 
Contract Disputes Act of 1978 (41 U.S.C. 606) is amended by adding 
at the end the following new subsections: 
"(d) Notwithstanding any other provision of this Act, a contractor 
and a contracting officer may use any alternative means of dispute 
resolution under subchapter IV of chapter 5 of title 5, United States 
Code, or other mutually agreeable procedures, for resolving claims. 
In a case in which such alternative means of dispute resolution or 
other mutually agreeable procedures are used, the contractor shall 
certify that the claim is made in good faith, that the supporting data 
are accurate and complete to the best of his or her knowledge and 
belief, and that the amount requested accurately reflects the con-
104 STAT. 2746 
PUBLIC LAW 101-552—NOV. 15, 1990 
tract adjustment for which the contractor believes the Government 
is liable. All provisions of subchapter IV of chapter 5 of title 5, 
United States Code, shall apply to such alternative means of dispute 
resolution. 
"(e) The authority of agencies to engage in alternative means of 
dispute resolution proceedings under subsection (d) shall cease to be 
effective on October 1, 1995, except that such authority shall con-
tinue in effect with respect to then pending dispute resolution 
proceedings which, in the judgment of the agencies that are parties 
to such proceedings, require such continuation, until such proceed-
ings terminate.". 
(b) JUDICIAL REVIEW OF ARBITRAL AWARDS.—Section 8(g) of the 
Contract Disputes Act of 1978 (41 U.S.C. 607(g)) is amended by 
adding at the end the following new paragraph: 
"(3) An award by an arbitrator under this Act shall be reviewed 
pursuant to sections 9 through 13 of title 9, United States Code, 
except that the court may set aside or limit any award that is found 
to violate limitations imposed by Federal statute.". 
SEC. 7. FEDERAL MEDIATION AND CONCILIATION SERVICE. 
Section 203 of the Labor Management Relations Act, 1947 (29 
U.S.C. 173) is amended by adding at the end the following new 
subsection: 
"(f) The Service may make its services available to Federal agen-
cies to aid in the resolution of disputes under the provisions of 
subchapter IV of chapter 5 of title 5, United States Code. Functions 
performed by the Service may include assisting parties to disputes 
related to administrative programs, training persons in skills and 
procedures employed in alternative means of dispute resolution, and 
furnishing officers and employees of the Service to act as neutrals. 
Only officers and employees who are qualified in accordance with 
section 583 of title 5, United States Code, may be assigned to act as 
neutrals. The Service shall consult with the Administrative Con-
ference of the United States and other agencies in maintaining 
rosters of neutrals and arbitrators, and to adopt such procedures 
and rules as are necessary to carry out the services authorized in 
this subsection.". 
SEC. 8. GOVERNMENT TORT AND OTHER CLAIMS. 
(a) FEDERAL TORT CLAIMS.—Section 2672 of title 28, United States 
Code, is amended by adding at the end of the first paragraph the 
following: "Notwithstanding the proviso contained in the preceding 
sentence, any award, compromise, or settlement may be effected 
without the prior written approval of the Attorney General or his or 
her designee, to the extent that the Attorney General delegates to 
the head of the agency the authority to make such award, 
compromise, or settlement. Such delegations may not exceed the 
authority delegated by the Attorney General to the United States 
attorneys to settle claims for money damages against the United 
States. Each Federal agency may use arbitration, or other alter-
native means of dispute resolution under the provisions of sub-
chapter IV of chapter 5 of title 5, to settle any tort claim against the 
United States, to the extent of the agency's authority to award, 
compromise, or settle such claim without the prior written approval 
of the Attorney General or his or her designee.". 
Qa) CLAIMS OF THE GOVERNMENT.—Section 3711(aX2) of title 31, 
United States Code, is amended by striking out "$20,000 (excluding 
PUBLIC LAW 101-552—NOV. 15, 1990 
104 STAT. 2747 
interest)" and inserting in lieu thereof "$100,000 (excluding interest) 
or such higher amount as the Attorney General may from time to 
time prescribe". 
SEC. 9. USE OF NONATTORNEYS. 
5 USC 581 note. 
(a) REPRESENTATION OF PARTIES.—Each agency, in developing a 
policy on the use of alternative means of dispute resolution under 
this Act, shall develop a policy with regard to the representation by 
persons other than attorneys of parties in alternative dispute resolu-
tion proceedings and shall identify any of its administrative pro-
grams with numerous claims or disputes before the sigency and 
determine— 
(1) the extent to which individuals are represented or assisted 
by attorneys or by persons who are not attorneys; and 
(2) whether the subject areas of the applicable proceedings or 
the procedures are so complex or specialized that only attorneys 
may adequately provide such representation or assistance. 
(b) 
REPRESENTATION 
AND ASSISTANCE 
BY NONATTORNEYS.—A 
person who is not an attorney may provide representation or assist-
ance to any individual in a claim or dispute with an agency, if— 
(1) such claim or dispute concerns an administrative program 
identified under subsection (a); 
(2) such agency determines that the proceeding or procedure 
does not necessitate representation or assistance by an attorney 
under subsection (aX2); and 
(3) such person meets any requirement of the agency to 
provide representation or assistance in such a claim or dispute. 
(c) DISQUALIFICATION OF REPRESENTATION OR ASSISTANCE.—Any 
agency that adopts regulations under subchapter IV of chapter 5 of 
title 5, United States Code, to permit representation or assistance by 
persons who are not attorneys shall review the rules of practice 
before such agency to— 
(1) ensure that any rules pertaining to disqualification of 
attorneys from practicing before the agency shall also apply, as 
appropriate, to other persons who provide representation or 
assistance; and 
(2) establish effective agency procedures for enforcing such 
rules of practice and for receiving complaints from affected 
persons. 
SEC. 10. DEFINITIONS. 
5 USC 581 note. 
As used in this Act, the terms "agency", "administrative pro-
gram", and "alternative means of dispute resolution" have the 
meanings given such terms in section 581 of title 5, United States 
Code, as added by section 40o) of this Act. 
SEC. 11. SUNSET PROVISION. 
5 USC 581 note. 
The authority of agencies to use dispute resolution proceedings 
under this Act and the amendments made by this Act shall termi-
nate on October 1,1995, except that such authority shall continue in 
effect with respect to then pending proceedings which, in the judg-
ment of the agencies that are parties to the dispute resolution 
104 STAT. 2748 
PUBLIC LAW 101-552—NOV. 15, 1990 
proceedings, require such continuation, until such proceedings 
terminate. 
Approved November 15, 1990. 
LEGISLATIVE HISTORY—H.R. 2497 (S. 971): 
HOUSE REPORTS: No. 101-513 (Comm. on the Judiciary). 
SENATE REPORTS: No. 101-543 accompanying S. 971 (Ctomm. on Governmental 
Affairs). 
CONGRESSIONAL RECORD. Vol. 136 (1990): 
June 5, considered and passed House. 
Oct. 24, considered and passed Senate, amended, in lieu of S. 971. 
Oct. 25, Senate vitiated passage of H.R. 2497; reconsidered and passed, 
amended. 
Oct. 26, House concurred in Senate amendment.