[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR33.214]



[Page 720-721]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 33_PROTESTS, DISPUTES, AND APPEALS--Table of Contents

 

                    Subpart 33.2_Disputes and Appeals

 

Sec. 33.214  Alternative dispute resolution (ADR).



    (a) The objective of using ADR procedures is to increase the 

opportunity for relatively inexpensive and expeditious resolution of 

issues in controversy. Essential elements of ADR include--

    (1) Existence of an issue in controversy;

    (2) A voluntary election by both parties to participate in the ADR 

process;

    (3) An agreement on alternative procedures and terms to be used in 

lieu of formal litigation; and

    (4) Participation in the process by officials of both parties who 

have the authority to resolve the issue in controversy.

    (b) If the contracting officer rejects a contractor's request for 

ADR proceedings, the contracting officer shall provide the contractor a 

written explanation citing one or more of the conditions in 5 U.S.C. 

572(b) or such other specific reasons that ADR procedures are 

inappropriate for the resolution of the dispute. In any case where a 

contractor rejects a request of an agency for ADR proceedings, the 

contractor shall inform the agency in writing of



[[Page 721]]



the contractor's specific reasons for rejecting the request.

    (c) ADR procedures may be used at any time that the contracting 

officer has authority to resolve the issue in controversy. If a claim 

has been submitted, ADR procedures may be applied to all or a portion of 

the claim. When ADR procedures are used subsequent to the issuance of a 

contracting officer's final decision, their use does not alter any of 

the time limitations or procedural requirements for filing an appeal of 

the contracting officer's final decision and does not constitute a 

reconsideration of the final decision.

    (d) When appropriate, a neutral person may be used to facilitate 

resolution of the issue in controversy using the procedures chosen by 

the parties.

    (e) The confidentiality of ADR proceedings shall be protected 

consistent with 5 U.S.C. 574.

    (f)(1) A solicitation shall not require arbitration as a condition 

of award, unless arbitration is otherwise required by law. Contracting 

officers should have flexibility to select the appropriate ADR procedure 

to resolve the issues in controversy as they arise.

    (2) An agreement to use arbitration shall be in writing and shall 

specify a maximum award that may be issued by the arbitrator, as well as 

any other conditions limiting the range of possible outcomes.

    (g) Binding arbitration, as an ADR procedure, may be agreed to only 

as specified in agency guidelines. Such guidelines shall provide advice 

on the appropriate use of binding arbitration and when an agency has 

authority to settle an issue in controversy through binding arbitration.



[56 FR 67417, Dec. 30, 1991, as amended at 59 FR 11382, Mar. 10, 1994; 

60 FR 48230, Sept. 18, 1995; 63 FR 58595, Oct. 30, 1998]