33.201 Definitions
Source: FAR 33.201 on acquisition.gov
In FAR disputes, precise definitions matter: contractors must know when a claim accrues, certify claims correctly, and recognize when a disagreement can become a formal claim or be resolved through ADR.
Overview
- FAR 33.201 provides the core definitions used in Subpart 33.2, Disputes and Appeals, establishing the meaning of key terms that control when a disagreement becomes a claim and how it may be resolved.
- These definitions are foundational because they affect claim timing, certification validity, and the use of voluntary dispute-resolution methods.
Key Rules
- Accrual of a claim
- A claim accrues when all events fixing alleged liability were known or should have been known, and some injury has occurred. Actual monetary damages do not need to have been incurred for accrual.
- Alternative dispute resolution (ADR)
- ADR includes voluntary procedures such as mediation, arbitration, conciliation, fact-finding, minitrials, facilitation, and ombudsmen to resolve issues in controversy.
- Defective certification / Issue in controversy / Misrepresentation of fact
- A defective certification is one that departs from the required language in FAR 33.207(c) or is signed by someone without authority; complete failure to certify is not merely defective. An issue in controversy is a material disagreement that may become a claim or is part of one. Misrepresentation of fact involves a false material statement or deceptive conduct intended to mislead.
Responsibilities
- Contracting Officers: apply these definitions consistently when evaluating disputes, claims timing, ADR suitability, and certification issues.
- Contractors: identify when claims accrue, ensure certifications are properly worded and signed, and understand when disagreements may become formal claims.
- Agencies: support proper dispute handling and encourage appropriate use of ADR.
Practical Implications
- This section exists to create common terminology for disputes and appeals.
- It affects statute-of-limitations analysis, claim preparation, and whether a certification problem can be corrected.
- Common pitfalls include waiting too long after claim accrual, using unauthorized signatories, and confusing a missing certification with a defective one.
As used in this subpart-
Accrual of a claim means the date when all events, that fix the alleged liability of either the Government or the contractor and permit assertion of the claim, were known or should have been known. For liability to be fixed, some injury must have occurred. However, monetary damages need not have been incurred.
Alternative dispute resolution (ADR) means any type of procedure or combination of procedures voluntarily used to resolve issues in controversy. These procedures may include, but are not limited to, conciliation, facilitation, mediation, fact-finding, minitrials, arbitration, and use of ombudsmen.
Defective certification means a certificate which alters or otherwise deviates from the language in 33.207(c) or which is not executed by a person authorized to bind the contractor with respect to the claim. Failure to certify shall not be deemed to be a defective certification.
Issue in controversy means a material disagreement between the Government and the contractor that-
(1) May result in a claim; or
(2) Is all or part of an existing claim.
Misrepresentation of fact means a false statement of substantive fact, or any conduct which leads to the belief of a substantive fact material to proper understanding of the matter in hand, made with intent to deceive or mislead.