What steps should a Contracting Officer take to resolve contract disputes?

The correct approach for a Contracting Officer to resolve contract disputes is to negotiate, document the issues, and involve legal counsel if necessary. This method is effective because it promotes communication between the parties involved and allows for an attempt to reach a mutually agreeable solution before escalating the matter. By documenting the issues, the officer creates a clear record of the dispute, which can be crucial for understanding the situation and for any potential legal proceedings.

Involving legal counsel is important if negotiations do not lead to a resolution or if the contract terms are complex, as legal professionals can provide advice on the best course of action and help ensure compliance with contract law. Overall, this approach fosters collaboration and can often lead to a more satisfactory resolution for all parties involved.

The other options lack the comprehensive and conciliatory framework necessary for effective dispute resolution. Relying on a third-party mediator immediately may be premature, as direct negotiation should be the first course of action. Terminating the contract is a drastic step that can lead to further complications and may not resolve underlying issues. Lastly, holding the contractor responsible without negotiation can escalate tensions and reduce the likelihood of finding a resolution that satisfies both parties.