FAR 33.202—Disputes.
Plain-English Summary
FAR 33.202 is a short but important cross-reference provision that points contractors and contracting officers to the Contract Disputes Act, 41 U.S.C. chapter 71, which governs how claims are asserted and resolved under federal contracts. It identifies the core subjects covered by the statute: the procedures and requirements for filing and resolving claims, the payment of interest on contractor claims, the certification requirement for certain contractor claims, and the civil penalty that can apply when a contractor claim is fraudulent or based on a misrepresentation of fact. In practice, this section reminds the acquisition workforce that disputes are not handled informally once a claim is made; they must follow the statutory process and related FAR requirements. It also signals that claim preparation matters because interest, certification, and potential penalties can significantly affect both the timing and the risk of a claim. For contractors, the section highlights that a poorly prepared or false claim can create financial exposure beyond simply losing the dispute. For contracting officers, it underscores the need to process claims under the CDA framework rather than ad hoc negotiation alone.
Key Rules
CDA governs disputes
Claims subject to the Disputes statute must be handled under 41 U.S.C. chapter 71. This means the statute, not just contract terms, controls the basic procedures and requirements for asserting and resolving claims.
Interest may accrue
The statute provides for payment of interest on contractor claims. In practice, this creates a financial incentive for timely resolution and can increase the Government’s cost if a valid claim remains unpaid.
Certification is required
Certain contractor claims must be certified as required by the Disputes statute. Certification is a formal statement that the claim is made in good faith and that the supporting data are accurate to the best of the contractor’s knowledge and belief.
Fraud has penalties
The statute authorizes a civil penalty for contractor claims that are fraudulent or based on a misrepresentation of fact. This is separate from simply denying the claim and can create serious legal and financial consequences.
Claims must be properly asserted
The section refers to procedures and requirements for asserting claims, which means a claim must be presented in the manner the statute requires before it can be resolved under the CDA process.
Responsibilities
Contracting Officer
Process contractor claims under the Contract Disputes Act framework, recognize when certification and interest rules apply, and ensure disputes are handled according to statutory procedures rather than informal practice alone.
Contractor
Assert claims in accordance with the Disputes statute, certify claims when required, support the claim with accurate facts and data, and avoid fraudulent statements or misrepresentations that could trigger civil penalties.
Agency
Administer disputes consistently with 41 U.S.C. chapter 71 and support contracting officers in applying the statutory rules on claim processing, interest, certification, and fraud-related consequences.
Practical Implications
This section is a reminder that a contractor claim is a formal legal event, not just a negotiation position, so the claim must be prepared carefully and submitted correctly.
Certification errors are a common pitfall; if a claim requires certification and the contractor omits it or certifies inaccurately, the claim may be delayed or challenged.
Interest can materially increase the Government’s liability over time, so both sides have an incentive to resolve valid claims promptly.
Any false statement or inflated factual basis can expose the contractor to civil penalties, making documentation and internal review essential before submission.
Contracting officers should treat CDA claims consistently and document the administrative record carefully, because the statutory process affects later appeal and litigation rights.
Official Regulatory Text
41 U.S.C. chapter 71 , Disputes, establishes procedures and requirements for asserting and resolving claims subject to the Disputes statute. In addition, the Disputes statute provides for- (a) The payment of interest on contractor claims; (b) Certification of contractor claims; and (c) A civil penalty for contractor claims that are fraudulent or based on a misrepresentation of fact.