The author recently gave a webinar and published a paper on the differences between Requests for Equitable Adjustments (“REA”) and Claims. The paper was published in National Contract Management’s Contract Management December 2018 issue. This is a summary of the key points.
| Key Differences | REA | Claim |
| To Whom Submitted? | May be submitted to contracting officer, COR, or contract specialist, but only the contracting officer may approve a change to the contract (so submission to the contracting officer is recommended). | Must be submitted to the contracting officer. |
| In Writing? | May be in any form, including oral, but written makes the most sense. May be less formal than a claim (e.g., a few spreadsheets with notes). | Must be in writing. |
| Statute of Limitations | None—but not after the contract is closed. | Six years from the date of accrual of claim. |
| Required Format | None—but should follow the contract and include supporting data. | None—but should follow the contract and include all required elements, plus the supporting data. |
| Sum Certain | Must state a sum certain or specific clause you seek relief from. | Must state a sum certain or specific clause you seek relief from. |
| In Dispute; Nonroutine | This issue is technically not in dispute at the REA stage; it is based on attempting to negotiate an equitable adjustment. | Must state that the item is not a routine request for payment, and that the matter is nonroutine and in dispute. |
| Must You Request a Contracting Officer Decision in Your Document? | Not required. | Yes. |
| Must You State that You Are Entitled to the Claim “As a Matter of Right” and Demand Payment or Adjustment? | Not required. | Yes. |
| Certification | Not generally required, but the Department of Defense requires it for claims over the Simplified Acquisition Threshold. Other agency contracts may include a clause so requiring. | Required for all claims over $100,000. |
| Deemed Denied | Never “deemed denied,” unless the contractor sets a deemed denial date in its REA. | “Deemed denied” by law after 60 days if under $100,000, or if the contracting officer fails to notify the contractor on a claim over $100,000 of a date certain for decision. |
| Finality of Decision | Not final—the contractor may submit a claim. | Final unless appealed by the contractor. |
| Alternative Dispute Resolution (ADR) | Available. | Available. |
| Appeals | Disappointed contractor may file a formal claim. | The contractor or the government (i.e., on a government claim) may appeal to a Board of Contract Appeals or the Court of Federal Claims. |
| Interest on REA/Claim? | None. | From the date the claim is submitted until payment. |
For other helpful suggestions on government contracting, visit:
Richard D. Lieberman’s FAR Consulting at https://www.richarddlieberman.com/, and Mistakes in Government Contracting at https://richarddlieberman.wixsite.com/mistakes/.
