Lessons on Contractor Termination for Default

摘要

The U.S. Court of Federal Claims recently overturned an agency's decision to terminate a government contractor for default. The case serves as an important reminder that, when reviewing such a termination, the court gives little credence to the government's subjective beliefs regarding the contractor's ability to perform. In 2014 the National Guard Bureau awarded a firm-fixed price construction contract to Alutiiq Manufacturing Contractors LLC to repair asphalt roads at an Air Force base. From the outset, AMC experienced performance issues on the project: its key personnel were not staffed on the project; it had difficulty finding a qualified subcontractor; and it failed to timely submit required contract documentation.