# 35.6600 Contractor claims.(a) *General.* The recipient must conduct an administrative and technical review of each claim before EPA will consider funding these costs.(b) *Claims settlement.* The recipient may incur costs (including legal, technical and administrative) to assess the merits of or to negotiate the settlement of a claim by or against the recipient under a contract, provided:(1) The claim arises from work within the scope of the Cooperative Agreement;(2) A formal Cooperative Agreement amendment is executed specifically covering the costs before they are incurred;(3) The costs are not incurred to prepare documentation that should be prepared by the contractor to support a claim against the recipient; and(4) The award official determines that there is a significant Federal interest in the issues involved in the claim.(c) *Claims defense.* The recipient may incur costs (including legal, technical and administrative) to defend against a contractor claim for increased costs under a contract or to prosecute a claim to enforce a contract provided:(1) The claim arises from work within the scope of the Cooperative Agreement;(2) A formal Cooperative Agreement amendment is executed specifically covering the costs before they are incurred;(3) Settlement of the claim cannot occur without arbitration or litigation;(4) The claim does not result from the recipient's mismanagement;(5) The award official determines that there is a significant Federal interest in the issues involved in the claim; and(6) In the case of defending against a contractor claim, the claim does not result from the recipient's responsibility for the improper action of others.