BUS 501 Government Acquisition
Instructor: Dr. Vic Villarreal
This paper will discuss contract disputes, and offer at least one example for consideration to understand the contract dispute process. The report I choose for this presentation was the appeal of Cenveo, Dallas CAB No. 2009-7 as this decision indicates the steps the contractor went through to resolve ambiguity issues and a cure notice for the fabrication of approximately 5 million envelopes, resulting in payment dispute of $55,338.68. Terence O’Connor states:
“There are two kinds of fights that the government and vendors can get into: protests and claims. Protests are fights by unsuccessful vendors trying to get the contract. Claims are typically fights by contractors trying to get out from under termination for default or contractors trying to get the contracting officer to do something like pay more money or interpret ambiguous contract wording.” (2007, p. 224)
“The Contract Dispute Act of 1978 established procedures and requirements for asserting and resolving claims by (or against) contractors.” (Stanberry, 2009, p. 312) “The dispute is initiated with a process by presenting a formal claim to the contracting officer who will then be able to issue a formal decision. The final decision must be furnished to the contractor in writing.” (Hearn, 2006, p. 317) A claim must meet three basic requirements of “FAR § 52.233-1, a claim must (1) be in writing; (2) request a "sum certain"; and (3) demand a final decision.” (Vacketta, 2008, para. A. Presentation of a "Claim")
There is a process to resolving disputes before it becomes a claim. Remember as stated earlier a claim is formal dispute that has resulted from an ambiguity in the contract and the contractor is seeking recourse of compensation in monetary sums or getting the unfavorable termination for default overturned. Termination for default exists as...