Overview
This section prescribes the standard terms and conditions for managing legal disagreements and administrative challenges, specifically covering the procedures for contract disputes, the filing of protests, and the application of federal law. It establishes the mandatory framework for how contractors must submit claims for payment or relief and how they must respond to stop-work orders resulting from post-award protests.
Key Rules
- Claim Certification: Any contractor claim exceeding $100,000 must be certified in writing, stating that the claim is made in good faith, the data is accurate, and the amount requested accurately reflects the government's liability.
- Statute of Limitations: Contractor claims must be submitted in writing to the Contracting Officer within six years after the accrual of the claim.
- Duty to Proceed: Under the Disputes clause, the contractor is generally required to continue performance of the contract diligently while any claim or appeal is pending.
- Protest Procedures: Protests filed with the GAO must be served to the Contracting Officer within one day of filing, and the government may issue a mandatory stop-work order while a protest is being resolved.
- Equitable Adjustments: If a protest-related stop-work order is canceled, the contractor is entitled to an equitable adjustment in the delivery schedule or contract price, provided they assert this right within 30 days of the end of the work stoppage.
- Applicable Law: United States federal law governs all claims regarding a breach of contract, regardless of where the contract is performed.
Practical Implications
- Performance Continuity: The "Duty to Proceed" means contractors cannot walk off the job due to a payment dispute or a disagreement over scope without risking a termination for default.
- Administrative Rigor: Failure to properly certify a claim over $100,000 or missing the six-year filing window can result in a jurisdictional bar, preventing the contractor from recovering any funds through the Armed Services Board of Contract Appeals (ASBCA) or the Civilian Board of Contract Appeals (CBCA).
- Cost Recovery: Contractors must meticulously track all costs associated with a protest-related stop-work order to ensure they can fully substantiate a request for an equitable adjustment once the protest is resolved.