Compensated Neutral Law and Legal Definition

According to 14 CFR 17.3 (Title 14 - Aeronautics And Space; Chapter I - Federal Aviation Administration, Department Of Transportation; Subchapter B - Procedural Rules; Part 17 - Procedures For Protests And Contracts Disputes; Subpart A – General), Compensated Neutral refers to “an impartial third party chosen by the parties to act as a facilitator, mediator, or arbitrator functioning to resolve the protest or contract dispute under the auspices of the Office of Dispute Resolution for Acquisition. The parties pay equally for the services of a Compensated Neutral, unless otherwise agreed to by the parties. A Dispute Resolution Officer (DRO) or Neutral cannot be a Compensated Neutral.”