Request for Contract Price Adjustment

A firm requested assistance from GAO in securing a contract price adjustment which it had requested from the contracting agency 2 years earlier. The firm was concerned that more than a reasonable amount of time had passed without any agreement between the parties. Such matters fall under the contract's "Disputes" clauses, under which both the Government and the contractor are bound to follow and exhaust the administrative procedure for resolution, which provides for the right of the contractor to appeal the decision of the contracting officer to the head of the agency. It was held that this administrative procedure must be followed, and furthermore, that GAO does not review decisions rendered under the "Disputes" clause absent a showing of fraud or bad faith. Therefore, the matter was dismissed.