Overview
This section defines the scope of FAR Subpart 33.2, establishing that the Disputes statute applies to nearly all express or implied contracts covered by the FAR, while providing specific exemptions for foreign and international entities.
Key Rules
- General Scope: The subpart applies to all express or implied contracts covered by the FAR, except where specifically excluded.
- Exemptions: It does not apply to contracts with foreign governments/agencies or international organizations (if the agency head determines applying the Disputes statute is not in the public interest).
- "All Disputes" Authority: The regulation covers disputes "arising under" (specific contract terms) and "relating to" (matters connected to the contract) a contract.
- Board of Contract Appeals (BCA) Jurisdiction: BCAs retain their historical authority to decide cases under the Disputes statute.
- Implementation Clause: FAR 52.233-1, Disputes, is the mandatory clause used to implement these statutory requirements and provide guidance to both contractors and agencies.
Practical Implications
- Contractors are governed by a uniform dispute resolution process for almost all domestic federal contracts, ensuring that claims follow a standardized path through Contracting Officer decisions and potential appeals to BCAs or the U.S. Court of Federal Claims.
- For contracts involving international bodies, contractors must verify if the agency head has waived the Disputes statute, as this would fundamentally change how legal disagreements are adjudicated.