The contract administration track covers spotting a change and pricing a request for equitable adjustment. This lesson follows a disagreement that does not settle: from claim, to the contracting officer's final decision, to appeal.
The government's policy is to try to resolve all contractual issues in controversy by mutual agreement at the contracting officer's level 1. When negotiation stalls, the next step is a claim, which includes a written demand or written assertion by one of the contracting parties seeking, as a matter of right, the payment of money in a sum certain 2.
Submitting the claim
Contractor claims shall be submitted, in writing, to the contracting officer for a decision within 6 years after accrual of a claim 3. A claim exceeding $100,000 needs the certification 4, which begins: I certify that the claim is made in good faith; that the supporting data are accurate and complete to the best of my knowledge and belief 5. The certification may be executed by any person authorized to bind the contractor with respect to the claim 6.
A defective certification does not deprive a court or an agency board of contract appeals of jurisdiction over the claim, but the court or board shall require it to be corrected before final judgment or decision 7.
The contracting officer's decision
The FAR sets out what the contracting officer shall do when a claim by or against a contractor cannot be satisfied or settled by mutual agreement and a decision on the claim is necessary 8. For claims over $100,000, the decision is due 60 days after receiving a certified claim; if it will not be issued within 60 days, the contracting officer shall notify the contractor, within that period, of the time within which it will be issued 9.
Silence is an answer. Any failure of the contracting officer to issue a decision within the required time periods will be deemed a decision denying the claim and will authorize the contractor to file an appeal or suit 10. The government pays interest on an amount found due and unpaid from the date the contracting officer receives the claim (certified, if required) or, if later, the date payment would otherwise be due, until payment 11.
The decision is final unless the contractor appeals or files a suit 12. The amount determined payable under it, less any portion already paid, should be paid, if otherwise proper, without waiting for the contractor to decide about an appeal 13.
Appeal: board or court
The decision tells you your options in its own words. To appeal to the agency board of contract appeals, you must, within 90 days from the date you receive the decision, mail or otherwise furnish written notice to the board 14. Instead, you may bring an action directly in the United States Court of Federal Claims 15 within 12 months of the date you receive the decision 16.
Alternative dispute resolution is available by mutual consent; if you refuse an offer of ADR, you must inform the contracting officer, in writing, of your specific reasons 17.
Throughout, keep working. The contractor shall proceed diligently with performance pending final resolution of any request for relief, claim, appeal or action arising under the contract 18, and comply with any decision of the contracting officer 19.
Claims that start with a subcontractor
Some disputes start below you. The Subcontracts clause requires immediate written notice of any action or suit filed, and prompt notice of any claim made against the contractor by any subcontractor or vendor that, in the contractor's opinion, may result in litigation related to the contract 20.
Worked example. Contractor V's request for equitable adjustment for an added site has stalled for four months. Its contracts director turns it into a claim: a written demand for a sum certain of $480,000, the certification signed by the vice president authorized to bind the company for the claim, and an index tying every dollar to timesheets and subcontractor invoices. She records the date the contracting officer received it.
Bids2Bank's Deadlines page has a type for anything else with a date 21, which is where a claim's receipt date and the appeal dates that follow a decision can live.
Record claim and appeal dates in Deadlines →
Indented paragraphs are invented worked examples. Tool links open Bids2Bank and need a free account.