Reagent World, Inc. vs Department of Agriculture, 2017 WL 3114026
The Civilian Board of Contract Appeals (CBCA) decided this case. As part of the General Services Administration (GSA), the CBCA hears various cases concerning federal agencies in the executive branch. Under the Contract Disputes Act(41 U.S.C. 7101-7109), the CBCA conducts dispute resolution between government contractors and agencies.
The CBCA was established on January 6, 2007, in accordance with Section 847 of the National Defense Authorization Act for Fiscal Year 2006. After its formation, the CBCA consolidated the authority of eight different governmental bodies – the contract appeal boards of the Departments of Housing and Urban Development, Interior, Labor, Energy, Transportation, Veterans Affairs and Agriculture, as well as the General Services Administration.
The CBCA has authority to hear cases involving all federal government agencies, except for the Department of Defense, the National Aeronautics and Space Administration, the United States Postal Service, the Postal Regulatory Commission and the Tennessee Valley Authority.
The CBCA also promotes the use of alternative dispute resolution (ADR) techniques to resolve disputes quickly, effectively and at low cost. Employing various practices to streamline regular case procedure, the CBCA encourages all parties to resolve conflicts out of court.
Background on an Alternative Dispute Resolution
In 2015, the Department of Agriculture (DoA) awarded Contract AG6395C150058 to Reagent World, Inc. (Reagent World). The contract was classified under NAICS code 325412 for “Pharmaceutical Preparation Manufacturing.” The total value of this firm-fixed-price contract was $110,364.
The period of performance for this indefinite delivery contract was specified as March 12, 2015 through March 31, 2020. An indefinite delivery contract allows the government to purchases goods or services on an unspecified schedule. Essentially, the government can award indefinite delivery contract when there is not a precise date for delivery or specific quantity listed.
Sometime after performance began, a dispute arose concerning this contract. Reagent World appealed to the CBCA for review and a final determination.
Analysis of an Alternative Dispute Resolution
Before the CBCA could review this case, the parties were able to resolve their dispute. In a statement to the CBCA on July 18, 2017, Reagent World and the DoA declared that they “have reached a settlement of all issues raised in the above-captioned appeal.”
In addition to settling their dispute, the parties filed a joint motion. The joint motion called for the CBCA to dismiss the present appeal.
As a result, the CBCA dismissed the present appeal with prejudice.
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