Arkansas Code
Subchapter 2 - Arkansas Procurement Law
§ 19-11-246. Resolution of contract and breach of contract controversies

(a) Applicability. This section applies to controversies between the state and a contractor which arise under or by virtue of a contract between them. This includes, without limitation, controversies based upon breach of contract, mistake, misrepresentation, or other cause for contract modifications or rescission.
(b)
(1) The State Procurement Director, the head of a procurement agency, or a designee of either officer is authorized, prior to commencement of an action in a court or any other action provided by law concerning the controversy, to settle and resolve a controversy described in subsection (a) of this section.
(2) This authority shall be exercised in accordance with the law governing the Arkansas State Claims Commission and the rules promulgated by the director.

(c)
(1) If such a claim or controversy is not resolved by mutual agreement, and after reasonable notice to the contractor and reasonable opportunity for the contractor to present the claim or controversy in accordance with the rules promulgated by the director, the head of a procurement agency, the director, or the designee of either officer shall promptly issue a decision in writing.
(2) The decision shall state the reasons for the action taken.

(d) A copy of the decision under subsection (c) of this section shall be mailed or otherwise furnished immediately to the contractor.
(e) The decision under subsection (c) of this section shall be final and conclusive.
(f) If the director, the head of a procurement agency, or the designee of either officer does not issue the written decision required under subsection (c) of this section within one hundred twenty (120) days after written request for a final decision, or within such longer period as may be agreed upon by the parties, then the contractor may proceed as if an adverse decision has been received.

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