Alutiiq; Alutiiq Manufacturing Contractors; AMC; FAR 49.402-3; termination for default; termination for convenience; Lisbon Contractors; McDonnell Douglas XII; Court of Federal Claims

The U.S. Court of Federal Claims recently overturned an agency’s decision to terminate a government contractor for default ─ finding that the government allowed a series of contract disputes, poor practices, conflicting personalities, and a lack of effective communication to cloud its termination analysis.  The case serves as an important reminder that, when reviewing a termination for default, the Court gives little credence to the government’s “subjective beliefs” regarding the contractor’s ability to perform.  Rather, the Court conducts an objective inquiry and scrutinizes the events, actions, and communications that led to the agency’s termination decision. 
Continue Reading Back to Basics: Government’s Subjective Views About Contractor’s Performance Do Not Justify Termination for Default