5333.291  Claims and terminations for default

(a)  If a contractor submits an uncertified claim exceeding $100,000, the contracting officer shall notify the contractor, in writing, of its failure to certify as required by the Contract Disputes Act (41 U.S.C. 601-613). The notice shall state that a final decision will not be issued until the claim is certified.

(b)  Prior to making a final decision on a claim or termination for default, the contracting officer shall refer the proposed final decision to the cognizant legal office for legal advice, ADR suitability, and appropriate dispute resolution strategies. The contracting officer, with the assistance of the cognizant legal office, shall seek review by AFLOA/JAQ of all proposed final decisions. At the same time, the contracting officer shall provide SAF/GCD with any proposed final decision on a claim involving PEO programs, any proposed final decision on a claim greater than $500,000, or any proposed termination for default with estimated excess reprocurement costs greater than $500,000.

(c)  The contracting officer shall use ADR to the maximum extent practicable to resolve an Air Force affirmative contract claim (such as defective pricing, liquidated damages, etc.) when unassisted negotiations reach an impasse as determined by the SCO or SCCO. The contracting officer shall provide to AFLOA/JAQ, with a copy to SAF/GCD, any audit or other findings indicating Air Force entitlement to recovery greater than $500,000 where unassisted negotiations have reached an impasse, in order to develop a dispute resolution strategy. Government claims must be formally asserted [issuance of a Contracting Officer's Final Decision (ref FAR 33.206)] within 6 years after the accrual of the claim.