Title 41, Public ContractsRelease 119-110

§7106 Agency Board Procedures for Accelerated and Small Claims

Title 41 › Subtitle III — Contract Disputes › CHAPTER 71 — CONTRACT DISPUTES › § 7106

Last updated Sep 22, 2026|Official source

Summary

Agency boards must have a faster appeal process for contract disputes of $100,000 or less. The contractor must choose to use it. When chosen, the board should try to decide the appeal within 180 days of the contractor’s election. Boards must also have a small-claims fast track for disputes of $50,000 or less, or $150,000 or less for a small business (as that term is defined in the Small Business Act). The contractor must choose this too. The rules are simpler, one board member can decide (with any quick approvals the rules allow), and the goal is to decide within 120 days. Small-claims decisions are final except for fraud and do not create legal precedent. The Administrator can adjust the dollar limits over time using economic indexes.

Full Legal Text

Title 41, §7106

Public Contracts, Source: USLM XML via OLRC

(a)Accelerated Procedure Where $100,000 or Less in Dispute.—
The rules of each agency board shall include a procedure for the accelerated disposition of any appeal from a decision of a contracting officer where the amount in dispute is $100,000 or less. The accelerated procedure is applicable at the sole election of the contractor. An appeal under the accelerated procedure shall be resolved, whenever possible, within 180 days from the date the contractor elects to use the procedure.
(b)Small Claims Procedure.—
(1)In general.—
The rules of each agency board shall include a procedure for the expedited disposition of any appeal from a decision of a contracting officer where the amount in dispute is $50,000 or less, or in the case of a small business concern (as defined in the Small Business Act (15 U.S.C. 631 et seq.) and regulations under that Act), $150,000 or less. The small claims procedure is applicable at the sole election of the contractor.
(2)Simplified rules of procedure.—
The small claims procedure shall provide for simplified rules of procedure to facilitate the decision of any appeal. An appeal under the small claims procedure may be decided by a single member of the agency board with such concurrences as may be provided by rule or regulation.
(3)Time of decision.—
An appeal under the small claims procedure shall be resolved, whenever possible, within 120 days from the date the contractor elects to use the procedure.
(4)Finality of decision.—
A decision against the Federal Government or against the contractor reached under the small claims procedure is final and conclusive and may not be set aside except in cases of fraud.
(5)No precedent.—
Administrative determinations and final decisions under this subsection have no value as precedent for future cases under this chapter.
(6)Review of requisite amounts in controversy.—
The Administrator, from time to time, may review the dollar amounts specified in paragraph (1) and adjust the amounts in accordance with economic indexes selected by the Administrator.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 7106(a)41:607(f).Pub. L. 95–563, § 8(f), Nov. 1, 1978, 92 Stat. 2386; Pub. L. 103–355, title II, § 2351(c), Oct. 13, 1994, 108 Stat. 3322. 7106(b)41:608.Pub. L. 95–563, § 9, Nov. 1, 1978, 92 Stat. 2387; Pub. L. 103–355, title II, § 2351(d), Oct. 13, 1994, 108 Stat 3322; Pub. L. 109–364, div. A, title VIII, § 857, Oct. 17, 2006, 120 Stat. 2349. In subsection (a), the word “only” is omitted for consistency with a similar provision in 41:608(a) and because the word “only” is redundant with the word “sole”. In subsection (b)(6), the words “from time to time, may review” are substituted for “is authorized to review at least every three years” because the source law, while effectively granting the Administrator authority to conduct the reviews, does not require the Administrator to conduct any reviews, and does not restrict the number of reviews the Administrator may conduct during any time period. The words “beginning with the third year after November 1, 1978” are omitted as obsolete. The words “the dollar amount specified in paragraph (1)” are substituted for “the dollar amount defined in subsection (a) of this section as a small claim” to eliminate unnecessary words and because 41:608(a), restated as paragraph (1), does not explicitly provide a definition for the term “small claim”. Senate Revision AmendmentIn subsec. (b)(6), “amounts” substituted for “amount” in heading and “amounts” substituted for “amount” in two places in text by S. Amdt. 4726 (111th Cong.). See 156 Cong. Rec. 18683 (2010).

Reference

Citations & Metadata

Citation

41 U.S.C. § 7106

Title 41, Public Contracts

Last Updated

Sep 22, 2026

Release point: 119-110