33.204 Policy
Source: FAR 33.204 on acquisition.gov
FAR 33.204 prioritizes resolving contract disputes at the contracting officer level and encourages the use of ADR to avoid formal claims whenever possible.
Overview
FAR 33.204 establishes the government’s policy for resolving contractual disputes, emphasizing that issues should be settled by mutual agreement at the contracting officer level whenever possible. The regulation encourages agencies and contractors to make reasonable efforts to resolve controversies before escalating them to formal claims. It also promotes the use of Alternative Dispute Resolution (ADR) procedures to the fullest extent practicable, except in situations where ADR may be inappropriate as outlined in 5 U.S.C. 572(b). Agencies have the authority to use ADR under both their own powers and the Administrative Dispute Resolution Act (ADRA), and may choose which authority to proceed under, except for arbitration, which must follow the ADRA.
The Government’s policy is to try to resolve all contractual issues in controversy by mutual agreement at the contracting officer’s level. Reasonable efforts should be made to resolve controversies prior to the submission of a claim. Agencies are encouraged to use ADR procedures to the maximum extent practicable. Certain factors, however, may make the use of ADR inappropriate (see http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section572(b)&num=0&edition=prelim" target="_blank">5 U.S.C. 572(b)). Except for arbitration conducted pursuant to the Administrative Dispute Resolution Act (ADRA), (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section571&num=0&edition=prelim" target="_blank">5 U.S.C.571, etseq.) agencies have authority which is separate from that provided by the ADRA to use ADR procedures to resolve issues in controversy. Agencies may also elect to proceed under the authority and requirements of the ADRA.