DATE: May 17, 2001

SUBJECT: Defense Logistics Agency Acquisition Directive (DLAD); Alternative Dispute Resolution (ADR)

SOURCE: Federal Register, May 17, 2001, Vol. 66, No. 96, page 27474

AGENCIES: Defense Logistics Agency (DLA)

ACTION: Final Rule

SYNOPSIS: DLA is adding a new provision, DLAD 5452.233-9001, Alternative Dispute Resolution (ADR), to establish ADR as the initial dispute resolution method to increase cooperative problem solving and reduce litigation. The provision is optional for offerors.

EDITOR'S NOTE: The DLAD is Chapter 54 of Title 48 of the Code of Federal Regulations.

For more on the proposed rule, see the May 16, 2000, FEDERAL CONTRACTS DISPATCH "Defense Logistics Agency Acquisition Directive (DLAD); Alternative Dispute Resolution."

EFFECTIVE DATE: May 17, 2001.

FOR FURTHER INFORMATION CONTACT: Mary Massaro, Procurement Analyst, Defense Logistics Agency, DLA/J-336, 703-767-1366, e-mail: mary_massaro@hq.dla.mil.

SUPPLEMENTAL INFORMATION: On May 16, 2000, DLA published a proposed rule to add DLAD 5452.233-9001, Disputes: Agreement to Use Alternative Dispute Resolution, in all DLA solicitations "unless the conditions at FAR [Federal Acquisition Regulation] 33.203(b) apply" (that is, the contract is with a foreign government or an international organization). Sixteen comments were received, and changes were made to the final version to clarify and simplify the language (for example, the proposed "the parties agree to use their best efforts to resolve any disputes that may arise without litigation" vs. the final "the parties agree to negotiate with each other to try to resolve any disputes that may arise"). Otherwise, the final provision is the same as the proposed provision.

DLAD 5452.233-9001 provides, "if unassisted negotiations are unsuccessful, the parties will use alternative dispute resolution (ADR) techniques to try to resolve the dispute. Litigation will only be considered as a last resort when ADR is unsuccessful or has been documented by the party rejecting ADR to be inappropriate for resolving the dispute...Before either party determines ADR inappropriate, that party must discuss the use of ADR with the other party."

An offeror may elect to "opt out of this clause" by checking a box. In addition, the provision permits the offeror to negotiate alternate wording with the DLA contracting officer.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2001 by Panoptic Enterprises. All Rights Reserved.

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