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At the outset, however, it is necessary to clear up the confusion between the terms "REA" and "Claim. 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. 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. Lastly, it should be noted that the CDA governs only post-award disputes; therefore, pre-award claims, such as bid protest actions, are not subject to the Act. However, a prime contractor may assert a pass-through claim against the government on behalf of a subcontractor. If the contracting officer fails to issue a final decision within a reasonable time, such failure may constitute a deemed denial, and the contractor may proceed with an appeal to the appropriate BCA or the Court of Federal Claims. As is discussed below, once a CDA claim is made, the contracting officer is obligated to issue a final decision that, if unfavorable, must be appealed within ninety (90) days to a BCA or one year to the Court of Federal Claims. An appeal to the BCA must be in writing, express dissatisfaction with the final decision, manifest intent to appeal the final decision, and be sent to the contracting officer and the BCA. Contractors are well aware that they cannot rely on the apparent authority of government officials. A termination for default is treated as a final decision, and a contracting agency may follow it with a final decision that the contractor reimburse the agency for its reprocurement costs. Contract with the federal government and you are by statute and by contract required to resolve any and all disputes under the Contract Disputes Act. In addition, the Government Accountability Office Contract Appeals Board handles contract disputes arising in the legislative branch, and the Office of Dispute Resolution for Acquisition handles contract disputes and bid protests arising out of Federal Aviation Administration procurements. The contract provided for payments to be made by electronic funds transfer to an Aspen company account at Bank of America.
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Or an agency might have paid an invoice before learning that a contractor had not, in its view, satisfied a contract requirement (such as staffing a specific number of positions for a specific number of hours per week), even when this was not the fault of the contractor, but caused by the agency. If a contractor foresees that a contract will not be completed by the contractual completion date due to excusable or government-caused delays, the contractor should consider requesting an extension of the time period for contract completion. Potential remedies of the government could include: - requiring the contractor to either repair, replace, correct, or re-perform the work at the contractor's expense; - the agency curing the defect itself or hiring a third party to do so and then charging the original contractor the costs of the additional work; - accepting the performance, but seeking a reduction in the price; or. 17% of government contract claims will be denied. A claim is defined in FAR § 2. First, a contractor must make a written demand or assertion. Who Can Assert a Claim under the CDA? Corp. v. Merrill, 332 U. S. 380 (1947), only an authorized contracting officer may bind the government. The Board of Contract Appeals cannot waive the Contract Disputes Act requirements or any other mandate under the statute. Sixth, the claim must include a specific request for a final decision or otherwise set forth a clear indication that the contractor would like the contracting officer to issue a final decision. The court concluded that the sub-subcontractor's email notifying the prime contractor about the claim was legally sufficient notice.
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Or, a contractor may file an appeal with the Court of Federal Claims within twelve (12) months of receipt of the contracting officer's final decision. Michael H. Payne is the Chairman of the firm's Federal Practice Group and, together with other experienced members of the group, frequently advises contractors on federal contracting matters including bid protests, claims and appeals, procurement issues, small business issues, and dispute resolution. There are still circumstances when the government may reasonably rely on the apparent authority of contractor representatives. Under Federal Crop Ins. If you are like most contractors, you simply cannot afford to file a contract claim against the government and then lose out for what most would call a 'technicality. This article sets forth basic information all federal government contractors should know when faced with the necessity of making or defending a claim on a federal project. Aspen filed a claim for breach of contract to recover the two progress payments, asserting that the government had breached the contract by failing to send progress payments to the Bank of America account.
Can A Contractor Submit A Claim By Email Updates
Fifth, the claim must be submitted to a contracting officer, not a field officer or other administrative official. Although the Miller Act specifies methods for giving notice, the court focused on whether the prime contractor had received actual notice. 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. Depending on the nature of the warranty provision contained in the contract, an agency can pursue certain remedies for defective services or products. If you need assistance in avoiding or dealing with any of these issues or if you have questions, please contact Peter Ford or Patrick Rothwell, the authors of this blog, or another member of PilieroMazza's Government Contracts Claims and Appeals Group. Government contractors should consider using a more formal method of notifying the agency. Claims on construction projects are unpleasant, but sometimes unavoidable. 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. The payment bond claimant was a sub-subcontractor who filed a claim because the subcontractor failed to make timely payment. The government may completely or partially terminate a contract because of a contractor's actual or anticipated failure to perform its contractual obligations.
Can A Contractor Submit A Claim By Email To Client
There are a few categories of claims that may arise between the government and a federal contractor that are not subject to the CDA. 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. Below, we discuss 5 key ways a government contractor can be subject to a government claim and best practices to reduce your risks. Emailing Government Contract Claims Notice of Appeal Can be Dangerous. It should be noted, however, that in cases where there is doubt, there is no harm in starting out with an REA. When this happens, an agency could issue a letter demanding that the contractor repay the amount by a specified date.
Companies should not take this process lightly. Statute of Limitations for Appealing Contract Claims Against the Government. 206 - Initiation of a claim. The vast majority of board cases are handled by either the Armed Services Board of Contract Appeals or the Civilian Board of Contract Appeals.