Disputes and Appeals
FAR Subpart 33.2 establishes the mandatory procedures and requirements for resolving contract disputes and appeals, ensuring both contractors and agencies follow a fair, structured process.
Overview
Subpart 33.2 of the FAR, "Disputes and Appeals," establishes the procedures and requirements for resolving disputes between contractors and the government under federal contracts. It covers the definition of claims, the process for initiating and certifying claims, the authority and responsibilities of contracting officers, and the rights of contractors to appeal decisions. The subpart also addresses interest on claims, suspected fraudulent claims, the obligation to continue performance during disputes, and the use of alternative dispute resolution (ADR) methods. It ensures that both parties have a structured, fair process for resolving disagreements and outlines the legal framework for appeals to boards of contract appeals or the U.S. Court of Federal Claims.
Key Rules
- Definitions and Applicability
- Clarifies key terms and specifies which contracts and disputes are covered by these procedures.
- Initiation and Certification of Claims
- Details how contractors must submit claims, including certification requirements for claims over $100,000.
- Contracting Officer’s Role
- Outlines the authority and duties of contracting officers in issuing decisions and handling appeals.
- Interest and Fraud
- Provides for interest on valid claims and addresses procedures for suspected fraudulent claims.
- Obligation to Continue Performance
- Requires contractors to continue contract performance during the dispute process, unless otherwise directed.
- Alternative Dispute Resolution (ADR)
- Encourages the use of ADR to resolve disputes efficiently without litigation.
Responsibilities
- Contracting Officers: Must review, decide, and document claims; inform contractors of rights; and support appeals processes.
- Contractors: Must submit claims in writing, certify claims over $100,000, and continue performance during disputes.
- Agencies: Oversee dispute resolution, ensure compliance with statutory requirements, and encourage ADR where appropriate.
Practical Implications
- This subpart provides a clear, standardized process for resolving contract disputes, reducing uncertainty and legal risk.
- Contractors must follow strict procedures and deadlines to preserve their rights.
- Failure to comply with certification or performance requirements can jeopardize claims or contract standing.