Relationship of the Disputes statute to Pub. L.85-804
Claims for contract rescission or reformation must first be processed under the Disputes statute before seeking extraordinary relief under Pub. L. 85-804, with legal counsel involvement required for complex decisions.
Overview
FAR 33.205 clarifies the relationship between the Contract Disputes statute (and the Disputes clause at 52.233-1) and Public Law 85-804, which provides for extraordinary contractual relief. Requests for relief under Pub. L. 85-804 are not considered claims under the Disputes statute and must be processed separately under FAR Subpart 50.1. However, remedies such as rescission or reformation for mutual mistake, previously only available under Pub. L. 85-804, can now be addressed by contracting officers under the Disputes statute. Contracting officers must seek legal advice when authority is unclear and must issue written decisions, with legal counsel, on complex claims. If a claim is denied under the Disputes statute, it may then be considered under Pub. L. 85-804, but only after the Disputes process is exhausted and if no other legal remedy exists.
Key Rules
- Requests under Pub. L. 85-804
- Not considered claims under the Disputes statute; must be processed under FAR Subpart 50.1.
- Rescission or Reformation Claims
- Now handled by contracting officers under the Disputes statute, with legal counsel involvement.
- Exhaustion of Disputes Process
- Claims must first be submitted under the Disputes statute before seeking relief under Pub. L. 85-804.
Responsibilities
- Contracting Officers: Determine proper authority, seek legal advice, issue written decisions with legal counsel, and ensure claims are processed in the correct order.
- Contractors: Submit claims for rescission or reformation under the Disputes statute first; only seek Pub. L. 85-804 relief if denied and no other remedy exists.
- Agencies: Provide legal support and ensure compliance with both statutes.
Practical Implications
- Ensures claims are processed under the correct authority and sequence, reducing confusion and improper filings.
- Contractors must understand which statute applies to their claim and follow the correct process.
- Legal complexity requires careful documentation and legal review, especially for rescission or reformation claims.