Takeaways

Contractors docketed only 364 new appeals during FY 2021.
The Board issued an advisory opinion for the first time in its 14-year history. 
The Board plans to offer the option to conduct hearings and ADR proceedings virtually or through a combination of in-person and virtual appearances once post-pandemic proceedings resume.

The Civilian Board of Contract Appeals (CBCA or Board) recently released its fiscal year (FY) 2021 report. The CBCA docketed 364 new matters in FY 2021, which was down slightly from the 378 new matters docketed in FY 2020. This represents the second consecutive year the Board docketed fewer than 400 new matters, which before last year had not happened since 2012. Of the 364 new matters, 185 were Contract Disputes Act cases and 72 were Alternative Dispute Resolution (ADR) cases, with the remaining consisting mostly of either appeals by civilian government employees concerning travel or relocation reimbursement denials or FEMA arbitration matters. For the second year in a row, the Board resolved more disputes than it docketed. The report also notes that for the first time since the Board’s 2007 inception, it issued an advisory opinion in response to a request by a U.S. district court pursuant to the Contract Disputes Act, 41 U.S.C. § 7107(f). The district court requested an advisory opinion on two issues of contract interpretation arising from a pending False Claims Act suit.

Judge Erica S. Beardsley, the CBCA Chair, noted in her introductory message that, despite the recent retirements of Judge Jeri Kaylene Somers (former Chair) and Judge Catherine B. Hyatt, the Board has “successfully transitioned to new CBCA leadership and the other judges have stepped up to cover the gaps left by these retirements.” Although the Board continues to hold proceedings virtually, Judge Beardsley hopes that in-person proceedings will resume soon. Judge Beardsley noted further that, based on the cost savings realized to the parties and the Government, the Board plans to “offer the option to conduct hearings and ADR proceedings virtually or through a combination of in-person and virtual appearances” once in-person proceedings resume. 

We view it noteworthy that notwithstanding the pandemic, the Board reduced its docket by resolving more matters than parties filed. We also note that the frequency of ADR at the Board continues, perhaps as a result of the Board’s excellent reputation in assisting parties to resolve matters amicably. As readers look to FY 2022 and beyond, they should consider the cost savings associated with virtual proceedings versus the benefits derived from confronting witnesses (and addressing the Board face-to-face) as another strategic decision to make in prosecuting Contract Disputes Act appeals.   

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