Alternate dispute resolution.

112 Pages·1 MB·en_US

by  Webb, Paul F.

DUDLEY KNOX LIBRARY
NAVAL POSTGRADUATE
SCHOOL
MONTEREY CA
93943-5101

ALTERNATE
DISPUTE
RESOLUTION
Submittedinpartialfulfillment
oftherequirementsforthedegree of
MasterofEngineering
by
Paul F. Webb, P. E.
LT, CEC, USN
A&M
Texas University
July, 1994
t.l
DUDLEY KNOX
LIBRARY
NAVAL POSTGRADUATE
SCHOOL
MONTEREY CA
93943-5101
ABSTRACT
In an effort to save taxpayer dollars and ease an overburdened
administrative andjudicial court system, this report presents evidence to encourage
the use ofalternate dispute resolution (ADR) in construction contracting within the
Naval Facilities Engineering Command. Information is presented detailing the
primary factors that contribute to this expensive and overburdened system,
including: costs associated with litigation, contractual document formation,
experience level ofjunior project managers, and adversarial relationships that tend
to develop between government agencies and construction contractors.
Research on court cases and associated cost data was limited by
geographical region, specifically, the Southern Division, Naval Facilities
Engineering Command, Charleston, South Carolina. Also included is related
information from the Department ofDefense administrative hearing agency, the
Armed Services Board ofContract Appeals.

111
LIST OF FIGURES, TABLES
Page
NAVFAC
Figure 2. Organization 13
Figure 2.2 Typical ROICC Office Organization 14
Figure 2.3 NAVFAC's FY93 Contract Award Distribution 17
NAVFAC ASBCA
Figure 5. Appeals Filed with 28
Figure 5.2 Disputes Process Flowchart 32
Figure 5.3 Claim Value Distribution 35
Table 5. Administrative Costs Analysis 34
ASBCA
Table 5.2 Southdiv 5-year Claims Analysis 35
in