Overview
FAR 33.201 provides the foundational vocabulary for Subpart 33.2, establishing the legal parameters for identifying when a claim begins, how disputes are defined, and the criteria for certifying claims and identifying fraud.
Key Rules
- Accrual of a Claim: A claim begins when all events fixing liability are known (or should have been known) and an injury has occurred, even if the specific monetary damages have not yet been paid out.
- Defective Certification vs. Failure to Certify: A certification is "defective" if it uses the wrong language or is signed by an unauthorized person; however, completely forgetting to provide a certification does not fall under the definition of "defective."
- Misrepresentation of Fact: To meet this definition, there must be a false statement or conduct regarding a material fact performed with the specific "intent to deceive or mislead."
- Issue in Controversy: This is a broad term covering any material disagreement that could eventually lead to, or is already part of, a formal claim.
- ADR Scope: Alternative Dispute Resolution is defined as a voluntary process, providing a non-exhaustive list of methods such as mediation, arbitration, and the use of ombudsmen.
Practical Implications
- Statute of Limitations: The definition of "accrual" is critical because it starts the clock on the six-year administrative statute of limitations for filing a claim under the Contract Disputes Act.
- Correction of Errors: By distinguishing "defective certification" from a "failure to certify," the FAR allows contractors to correct technical errors in their claim certifications without necessarily invalidating the entire submission or losing the original filing date for interest purposes.