An analysis of Alternative Dispute Resolution (ADR) as it applies to contract dispute settlement and its use by the Defense Industry

Abstract

The objective of this research is to assess the extent to which defense contractors employ the use of Alternative Dispute Resolution (ADR) in their contract dispute settlement processes. A questionnaire was utilized to gather information from thirty defense contractors. The thesis provides a legislative background for ADR, and briefly discusses various techniques of the ADR process. Additionally, data collected from industry are presented and discussed. The study identified mediation and negotiation as the technique favored by commercial companies. Furthermore, this study concludes that Government agencies do not reap the benefits of ADR to the extent that commercial companies do. The use of ADR has taken hold, and its use is likely to increase. However, barriers exist that serve to limit its use by Government agencies. These barriers include education about various ADR techniques and the perception by the defense industry that Government a agencies are unwilling to enter into ADR.