How are most U.S. government contract disputes initially handled?

Most U.S. government contract disputes are initially handled by the Armed Services Board of Contract Appeals (ASBCA). This board is specifically established to provide an administrative forum for resolving disputes between contractors and the Department of Defense. Utilizing the ASBCA allows for a specialized approach to contract issues relating to defense contracts, where both parties can engage in a more streamlined process tailored to the nuances of government contracting.

This mechanism is advantageous as it helps avoid the lengthy and often costly process of federal court litigation. Cases can be reviewed more quickly, and the board has the expertise to address complex issues surrounding government contracts. This process enables contractors to receive a fair evaluation based on the specific contractual obligations and government regulations governing their agreements.

Other methods, such as mediation and private arbitration, can also be used to resolve disputes but are generally not the first avenue for government contracts. Mediation and arbitration are often voluntary or arise from the terms of the contracts themselves rather than being the standard initial procedure for disputes involving government contracts.