CBCA reports 2024 FEMA arbitration surges amid steady dispute resolution outcomes

The Civilian Board of Contract Appeals (CBCA) handled 392 new cases in FY 2024, a slight increase from 386 cases in FY 2023, reflecting a steady demand for its services in resolving federal contract disputes. This contradicts a broader trend observed at the Armed Services Board of Contract Appeals, which noted its lowest number of Contract Disputes Act appeals in four decades. FEMA arbitration requests jumped by 41% to 65 cases, up from 46 the previous year, with approximately 80% of those cases either favoring the government or resulting in shared liability. FEMA-related trends underscore the ongoing challenges in disaster relief contracting as federal emergency spending rises.

The Department of Veterans Affairs, General Services Administration, and Department of State were the primary sources of appeals and ADRs in fiscal 2024. Among general contract disputes, nearly 70 percent of CBCA decisions upheld the original findings of contracting officers, as in prior years. Termination for convenience claims accounted for 15 percent of the docket, while disputes over contract interpretation—especially regarding the scope of work—remained common. Resolution times averaged six months from docketing to decision, with nearly 95 percent of cases resolved within a year.

CBCA highlighted its readiness for increasing complexity in federal disputes, citing investments in technology and personnel. The Board plans to launch a long-awaited electronic docketing system by the end of calendar 2024, which will improve case management and transparency for litigants. The Board also balanced hybrid hearing formats, with virtual and in-person options providing broader accessibility to participants.