The Contract Disputes Act of 1978 ("CDA", , ), which became effective on March 1, 1979, establishes the procedures for handling "claims" relating to

United States Federal Government The federal government of the United States (U.S. federal government or U.S. government) is the national government of the United States, a federal republic located primarily in North America, composed of 50 states, a city within a feder ...

contracts. It is codified, as amended, at . Claims by contractors against the Federal Government must be submitted in writing to the Government's

Contracting Officer A Contracting Officer ( KO or CO ) is a person who can bind the Federal Government of the United States to a contract which is greater in value than the federal micro-purchase threshold ($10,000). This is limited to the scope of authority delegated ...

for a decision. Claims by the Federal Government against a contractor must be the subject of a decision by the Contracting Officer. Apart from claims by the Federal Government alleging

fraud In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compensa ...

in connection with a claim by the contractor, all claims by either the Federal Government or the contractor must be submitted within six years after the accrual of the claim. Claims by contractors for more than $100,000 must be accompanied by a certification that (i) the claim is made in

good faith In human interactions, good faith ( la, bona fides) is a sincere intention to be fair, open, and honest, regardless of the outcome of the interaction. Some Latin phrases have lost their literal meaning over centuries, but that is not the case ...

, (ii) the supporting data are accurate and complete to the best of the contractor's knowledge and belief, (iii) the amount requested represents the contract adjustment for which the contractor believes the Federal Government is liable, and (iv) the certifier is authorized to submit the certification on behalf of the contractor. There are procedures in the statute for remedying certifications that do not exactly mimic the required certification language. For claims of $100,000 or less, the Contracting Officer is required to issue a decision within 60 days of receipt of the claim provided the contractor requests a decision within that time period. For claims in excess of $100,000, the Contracting Officer is required, within 60 days, either to issue a decision or notify the contractor when a decision will be issued. All decisions should be issued within a reasonable time, taking into account the nature of the claim, and, if they are not, the contractor may either request a tribunal to direct the Contracting Officer to issue a decision within a specified time or treat the failure to issue a decision as an appealable "deemed" denial of the claim. If the contractor is dissatisfied with the Contracting Officer's decision on a claim, the contractor may (i) appeal that decision to the cognizant agency board of contractor appeals within 90 days of receipt of the decision or (ii) bring suit on the claim in the

United States Court of Federal Claims The United States Court of Federal Claims (in case citations, Fed. Cl. or C.F.C.) is a United States federal court that hears monetary claims against the U.S. government. It was established by statute in 1982 as the United States Claims Court, ...

within 12 months. Decisions not appealed within one of these time periods become final and conclusive. There are procedures in the statute authorizing the use of mutually agreeable

alternative dispute resolution Alternative dispute resolution (ADR), or external dispute resolution (EDR), typically denotes a wide range of dispute resolution processes and techniques that parties can use to settle disputes with the help of a third party. They are used for ...

techniques for handling disputes and well as for the use of streamlined and accelerated litigation procedures for smaller claims at the boards of contract appeals. The losing

party A party is a gathering of people who have been invited by a host for the purposes of socializing, conversation, recreation, or as part of a festival or other commemoration or celebration of a special occasion. A party will often feature f ...

may appeal a decision by either a board of contract appeals or the

to the Court of Appeals for the Federal Circuit. A contractor is entitled to

interest In finance and economics, interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is distin ...

on the amount found due on its claim running from the date the Contracting Officer received the claim until the claim is paid.41 U.S.C. 7109

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* * {{Authority control United States federal government administration legislation 1978 in law United States contract law Government procurement in the United States 95th United States Congress