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However, an important exception to this rule is that a contracting officer's final decision is not a prerequisite to the government's assertion of a counterclaim against a contractor under the False Claims Act. Companies should not take this process lightly. Whether the claim exceeds $100, 000 or not, the best practice is to identify the request as a claim under the Contract Disputes Act of 1978, 41 U. S. C. 601-613, together with a request for a Contracting Officer's Decision. 207(c) when the claim amount exceeds $100, 000, and it must be submitted to the Contracting Officer in a manner that clearly provides the factual, technical, and legal basis for an equitable adjustment to the contract. The court concluded that the sub-subcontractor's email notifying the prime contractor about the claim was legally sufficient notice. The Agency will argue that your contract claims are time barred pursuant to the Contract Disputes Act, 41 U. 48 CFR § 33.206 - Initiation of a claim. | Electronic Code of Federal Regulations (e-CFR) | US Law. How to Appeal a Final Decision?
Generally, a contractor may not recover its attorneys' fees incurred pursuing a claim under the CDA. Liquidated damages are a fixed amount set forth in a contract to compensate the agency for unexcused delays in the contractor's performance of the contract. Timing may play a crucial role in a contractor's decision, but many factors, such as preference for a more—Court of Federal Claims—or less—BCA—formal set of procedural rules or the ability of the government to bring a False Claims Act counterclaim, should be weighed by a contractor in making its forum selection for its appeal. Additionally, any tort claim that does not arise under or relate to a contract or implied-in-fact contract between the government and a contractor is not subject to the CDA. Can a contractor submit a claim in writing by e-mail. A common type of government claim is based upon what the government considers to be an overpayment on its part. When a contractor appeals a CDA claim to the COFC or a BCA, sometimes an agency will determine whether it has the ability to present a government counterclaim under the False Claims Act (FCA) for false statements made by the contractor in its claim, in its billing, or some other representation to the government. However, a contractor's claim should contain sufficient information to show the basis for the contractor's entitlement to the relief requested.
The CDA governs post-award monetary claims, such as breach of contract, non-monetary claims, such as a claim for time or interpretation issues regarding a specification, and claims arising out of an implied-in-fact contract between the federal government and a contractor. Generally, once a contractor chooses its forum, its decision is binding, and the contractor cannot pursue its claim in the other forum. 2% of appeals to the Board shall be dismissed or denied either for lack of jurisdiction or hearing the case on its merits. When Can a CDA Claim Be Asserted? Second, the contractor's written demand or assertion must seek the payment of money in a sum certain, the adjustment or interpretation of contract terms, or other relief arising under or relating to a contract between the government and the contractor. Can a contractor submit a claim by email updates. Third, all contractor claims exceeding $100, 000.
How to Make a Claim under the CDA? Thus, any statement or request for monetary damages in the contractor's claim must be scrutinized carefully to ensure there is nothing in the claim that would give rise to an FCA counterclaim. Should a Contractor Submit an REA or a Claim. Filing a government contract claim. S Court of Federal Claims or to an administrative board of contract appeals. For claims exceeding $100, 000. A subcontractor cannot bring a claim against the government under the CDA. A formal complaint is not required to file an appeal of a contracting officer's final decision to a BCA.
The payment bond claimant was a sub-subcontractor who filed a claim because the subcontractor failed to make timely payment. Considering the time and resources required for an appeal of both a termination for default or a government claim for reprocurement costs or addressing a proposed suspension or debarment, it may be wiser to negotiate with an agency in advance to terminate the contract for convenience rather than default, which is less damaging to a contractor's reputation and future business dealings with the government. The claims process is very narrowly interpreted by the courts. A contractor must file its appeal with the BCA within ninety (90) days of receipt of the contracting officer's final decision. In this case, the prime contractor contacted the sub-subcontractor to ask how much it was owed on the project. This 6-year time period does not apply to contracts awarded prior to October 1, 1995. The Army's failure to make payment to the account designated in the CCR file was a breach of contract. Termination for Default. Can a contractor submit a claim in writing by email far. If progress is not made within a reasonable time, an REA can easily be converted to a claim under the Contract Disputes Act. The Email as Notice of Claim.
If it becomes apparent that the contracting officer has no intention of issuing a change order, the contractor should proceed to the formal CDA claims process described above. The Contract Disputes Act: What Every Federal Government Contractor Should Know. It is not always an easy question to answer and our advice depends upon the history of the dispute, and the nature of the relationship with the Contracting Officer and his, or her, representatives. Those procedural steps will assure that the clock starts running on the 60 day time limit for the issuance of a decision (or longer under some circumstances), and it further assures that interest starts to run from the date the claim was submitted. However, a written demand or written assertion by the contractor seeking the payment of money exceeding $100, 000 is not a claim under the Contract Disputes Act of 1978 until certified as required by the Act. "
All disputes under the CDA must be submitted to either the U. In general terms, an equitable adjustment means that the contractor is entitled to his actual costs, plus reasonable profit (except for suspensions), overhead, and bond. The Contract Disputes Act of 1978 (CDA or Act) was enacted by Congress to implement a comprehensive statutory scheme for the resolution of government contract claims. The federal government and government contractors may bring claims under the CDA. Corp. v. Merrill, 332 U. S. 380 (1947), only an authorized contracting officer may bind the government. What Is the Contract Disputes Act?
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