Title page

Contents

Highlights 2

Letter 5

Background 7

DOD Contracts We Reviewed Generally Included the Clause Restricting Mandatory Arbitration 10

Contracting Officers Generally Included the Clause Restricting Mandatory Arbitration in Reviewed Contracts 10

Two DLA Contracts We Selected Did Not Include the Required Clause Restricting Mandatory Arbitration 11

Contractors Limited Their Use of Mandatory Arbitration in Accordance with the DFARS Clause 12

Conclusions 13

Recommendation for Executive Action 13

Agency Comments 13

Appendix I: Department of Defense Contractors That GAO Interviewed 15

Appendix II: GAO Contact and Staff Acknowledgments 16

Figure 1. Notional Depiction of Legal Relationships in Department of Defense Contracting 8

Table 1. Department of Defense Contractors That GAO Interviewed 15