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Simple English definitions for legal terms
CDA claims
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A quick definition of CDA claims:
CDA claims: When the government and a company make a contract, sometimes there are disagreements about what was promised or how much money should be paid. If the company thinks they are owed money or need something changed in the contract, they can file a formal claim. This is a written request for payment or changes to the contract. If the claim is for more than $100,000, the company has to prove that they are telling the truth and that the amount they are asking for is fair. The government has to listen to the claim and make a decision. If the company doesn't like the decision, they can appeal to a higher court.
A more thorough explanation:
CDA claims refer to formal claims filed under the Contract Disputes Act of 1978 in government contracts. These claims are written demands or assertions made by one of the contracting parties seeking payment of money, adjustment or interpretation of contract terms, or other relief related to the contract.
For example, if a contractor believes that the government owes them money for work completed under a contract, they can file a CDA claim seeking payment of that money.
If the claim is for more than $100,000, it must be certified and meet certain requirements, such as being made in good faith and having accurate supporting data. If the claim is not settled, it can lead to adversarial litigation in a federal court of law.
To encourage settlement, all claims must first be presented to the Contracting Officer, who issues a Contracting Officer’s Final Decision. If the contractor disagrees with this decision, they can appeal to the Board of Contract Appeals or to the United States Court of Federal Claims.
Overall, CDA claims are an important part of government contracts and can help ensure that both parties are held accountable for their obligations under the contract.