Terminations for Default

摘要

In an Armed Service Board of Contract Appeals (ASBCA) case this year, A-Greater New Jersey Movers, Inc., the government awarded a requirements contract for baggage moving services to be performed in and around Fort Dix, New Jersey. Within the first few months, the government experienced a few problems with the contractor's performance, while the contractor experienced problems getting paid from the Defense Finance Accounting Service. The payment problems were caused by a number of factors, not the least of which were the contractor's invoicing errors. After three months of performance, the government met with the contractor to discuss the payment problems, and offered to release the contractor from the contract, which the contractor declined. Less than two months later, because of the payment delays, the contractor put the government on "a month trial." The contractor notified the government that it was stopping performance, that it would not show up to conduct the scheduled pick-ups and deliveries, and that it was holding and would not release to service members any of the in-bound or out-bound shipments that were in its possession. The contracting officer terminated the contract for default for the contractor's failure to provide the services, and for its failure to provide a quality control plan and evidence of insurance as required by the contract and requested by the contracting officer.