8.406-6 Disputes
Source: FAR 8.406-6 on acquisition.gov
FAR 8.406-6 ensures disputes under schedule orders are handled by the appropriate contracting officer and encourages alternative dispute resolution to streamline conflict resolution.
Overview
FAR 8.406-6 outlines the procedures for handling disputes related to orders placed under Federal Supply Schedule (FSS) contracts. It distinguishes between disputes arising from the performance of an order and those concerning the terms and conditions of the schedule contract itself. The section assigns responsibilities to the ordering activity contracting officer for issuing final decisions or referring disputes, mandates prompt notification to the schedule contracting officer, and clarifies the appeals process. It also encourages the use of alternative dispute resolution (ADR) methods whenever possible to resolve disputes efficiently.
Key Rules
- Performance Disputes
- The ordering activity contracting officer may issue final decisions or refer disputes about order performance to the schedule contracting officer, and must notify the schedule contracting officer of any final decision.
- Contract Terms Disputes
- Disputes about the terms and conditions of the schedule contract must be referred to the schedule contracting officer, with notification to the contractor.
- Appeals
- Contractors can appeal final decisions to the Board of Contract Appeals or the U.S. Court of Federal Claims.
- Alternative Dispute Resolution (ADR)
- ADR should be used to the maximum extent practicable to resolve disputes.
Responsibilities
- Contracting Officers: Distinguish between performance and contract terms disputes, issue or refer decisions as appropriate, notify relevant parties, and consider ADR.
- Contractors: Understand appeal rights and procedures for disputes.
- Agencies: Ensure proper dispute handling and encourage ADR use.
Practical Implications
- This section ensures disputes are resolved by the appropriate authority, reducing confusion and delays.
- It impacts daily contracting by clarifying who handles which disputes and how appeals are processed.
- Common pitfalls include misclassifying disputes or failing to notify the correct parties, which can delay resolution.
(a) Disputes pertaining to the performance of orders under a schedule contract.
(1) Under the Disputes clause of the schedule contract, the ordering activity contracting officer may-
(i) Issue final decisions on disputes arising from performance of the order (but see paragraph (b) of this section); or
(ii) Refer the dispute to the schedule contracting officer.
(2) The ordering activity contracting officer shall notify the schedule contracting officer promptly of any final decision.
(b) Disputes pertaining to the terms and conditions of schedule contracts. The ordering activity contracting officer shall refer all disputes that relate to the contract terms and conditions to the schedule contracting officer for resolution under the Disputes clause of the contract and notify the schedule contractor of the referral.
(c) Appeals. Contractors may appeal final decisions to either the Board of Contract Appeals servicing the agency that issued the final decision or the U.S. Court of Federal Claims.
(d) Alternative dispute resolution. The contracting officer should use the alternative dispute resolution (ADR) procedures, to the maximum extent practicable (see 33.204 and 33.214).