As fiscal year (“FY”) 2025 closes, both the Armed Services Board of Contract Appeals (“ASBCA”) and Civilian Board of Contract Appeals (“CBCA”) released their annual reports. Together, the two reports provide a useful snapshot of case volumes, outcomes, agency trends, and procedural developments. We break down the findings and, most importantly, what they mean for contractors navigating claims and disputes in FY 2026.
1. New Case Filings Increased at Both Boards
The stats: Both the ASBCA and CBCA experienced increases in the number of appeals docketed in FY 2025 as compared to FY 2024.
The ASBCA docketed 371 new or reinstated appeals, a 34% increase from the prior year’s 276 appeals. The U.S. Army Corps of Engineers remained the greatest source of new appeals, with 104 filings, while the Defense Logistics Agency saw a three-fold increase—from 11 to 33—and Air Force filings rose sharply from 37 to 62.
The CBCA docketed 390 new cases, a 22% increase from the prior year’s 319 cases. This included 12 different case types (e.g., Contract Disputes Act (“CDA”) appeals, FEMA arbitrations, relocation reimbursements, and Indian Self-Determination and Education Assistance Act cases). Notably, there were 222 new CDA appeals filed this year, a 32% increase from the 168 new CDA appeals filed last year. The CBCA report shows the Department of Veterans Affairs, the U.S. Agency for International Development, and the General Services Administration leading the pack, with 70, 43, and 36 appeals docketed, respectively. The caseload for FY 2025 also includes disputes pursuant to the Administrative False Claims Act (“AFCA”), as the CBCA gained jurisdiction over those disputes as of December 2024.[1]
What it means: FY 2025 saw an uptick in disputes advancing to litigation across both defense and civilian agencies. The reasons for the increase are hard to pinpoint given the variety of cases and types of disputes. However, we note that this uptick in cases is likely unrelated to the change in administration given the time required for appeals to reach the Boards. Any increase in disputes related to the new administration’s actions, as many predict, is more likely to be seen in next year’s case load.
2. Appeals Continue to be Sustained at High Rates
The stats: Both Boards continue to be favorable fora for contractors. The ASBCA sustained (in whole or in part) 67% of appeals that reached the merits, consistent with high success rates in recent years. The CBCA sustained (in whole or in part) 61% of appeals that reached the merits, also consistent with substantial success rates in recent years.
What it means: The predominance of sustained and partially-sustained outcomes continues to signal that well-supported claims fare well at the Boards.
3. Number of Pending Cases Dropped Again
The stats: The ASBCA continued to chip away at its backlog of appeals in FY 2025. After reporting more than 900 pending appeals in FY 2020–2023, the ASBCA reduced its docket to 784 in FY 2024 and further to 748 cases in FY 2025. Notably, despite an increase in new filings, the ASBCA appears to have resolved appeals at a faster rate than they were filed. However, one agency, the Defense Contract Management Agency (“DCMA”), showed a higher ratio of pending appeals to new appeals, suggesting that cost accounting matters may take longer to resolve because of their complexity.
Of the 748 cases pending before the ASBCA, more than 200 were in “suspended” status, generally at the parties’ request while they pursue settlement, while only 68 were “ready to write,” the category reflecting cases awaiting a decision by the Board.
At the CBCA, pending CDA appeals rose from 318 to 375. This increase tracks with the surge in new filings, and the CBCA still resolves a large number of matters across its diverse docket. With respect to case status, the CBCA does not break down its pending cases with the same level of detail as the ASBCA.
What it means: The ASBCA is moving appeals faster than they are arriving—evidence of effective docket management despite a busier year. The concentration of DCMA matters in pending status underscores the added complexity and longer timelines typically associated with cost accounting disputes. At the CBCA, higher pending figures align with increased filings rather than slower processing, and the Board remains active across its broad set of case types.
4. ADR Continues to Deliver Strong Results
The stats: The annual reports confirm that Alternative Dispute Resolution (“ADR”) remains a highly effective and widely used tool at both Boards. At the ASBCA, 80 appeals moved to ADR in FY 2025, and the Board reports that all 80—every single matter diverted to ADR—were successfully resolved, underscoring ADR as a valuable process for litigants seeking efficient, negotiated outcomes. The CBCA, which reports its ADR data slightly differently, conducted 53 ADRs and noted that 28 disputes were resolved prior to a hearing.
Additionally, the ASBCA highlighted the continued availability of “off-docket” ADR, which allows parties to seek assistance from the Board without filing a notice of appeal. Off-docket ADR is often an attractive choice for contractors who wish to preserve a positive working relationship with the agency. The ASCBA handled five such matters in FY 2025. The CBCA also offers off-docket ADR, but it does not report those matters separately from its overall ADR statistics.
What it means: Collectively, the Boards’ ADR data demonstrate the continued effectiveness of mediation and other alternative processes in resolving disputes efficiently. The success rates at both Boards underscore its value, and the option for off-docket ADR adds an additional, low-friction avenue for resolving issues prior to the filing of an appeal.
5. Modernization, Accessibility, and Technology Enhancements
Finally, the Boards highlighted notable qualitative updates this year. Both the ASBCA and CBCA continued to offer flexible hearing formats, allowing proceedings to be held in-person or virtually. The CBCA converted a courtroom and conference room to support hybrid hearings and mediations, enhancing accessibility for litigants. While not reflected in its annual report, the ASBCA is preparing to move offices soon and will have upgraded technology in its courtrooms. The ASBCA also published guidelines for the use of Artificial Intelligence (“AI”) in the last year, and the CBCA reports that it is evaluating the use of AI by parties. Finally, the CBCA also announced the launch of its new Electronic Docketing System (“EDS”), marking a significant modernization of its case management processes.
Overall, the FY 2025 reports show that both Boards remain active, effective forums for resolving government contract disputes, even amid rising filings and increasingly complex cases. With strong ADR programs, steady case management, and ongoing modernization, contractors can expect the ASBCA and CBCA to remain reliable venues in FY 2026.
Covington’s government contracts practice group will continue tracking developments related to contract claims and disputes, including practice before the Boards, and we will share updates as they arise.
[1] For more discussion on the AFCA, see our blog post from earlier this year.