Misc Pub 27-8 Legal Handbook Commander’s 2019
Inspection and Acceptance
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ArmyDemLogProgramBriefing-Jan17
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- 3. Terminations
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| 2. Inspection and Acceptance The Government has the right to receive conforming goods and services. The particular inspection clauses in a contract, if any, determine the extent of the Government’s right to inspect a contractor’s performance. Inspection clauses may grant the Government right to inspect and test supplies, services, materials furnished, work required by the contract, facilities, and equipment at all places and times, and, in any event, before acceptance. In general, the Government is entitled to strict compliance with the specifications in its contract. If the contractor delivers nonconforming goods or services, the Government may take remedial action consistent with its inspection clauses to ensure that it receives the fair value of the goods and services for which it contracted. 3. Terminations There are two general types of terminations Terminations for Convenience and Terminations for Default Under a Termination for Convenience, the Government has the right to terminate a contract, in whole or in part, if the Contracting Officer determines that termination is in the Government’s interest. The contractor is then entitled to (1) the contract price for completed services or supplies accepted by the Government (2) reasonable costs incurred in Return to Table of Contents 339 the performance of the work terminated (3) a fair and reasonable profit (unless the contractor would have sustained a loss had that contract been completed and (4) reasonable costs of settlement of the work terminated. Under a Termination for Default, however, the Government has the right to completely or partially terminate a contract because of the contractor’s actual or anticipated failure to perform its contractual obligations. When a contract is terminated for default, the contractor maybe liable to the Government for any excess costs incurred with acquiring the supplies or services similar to those terminated for default, and for any other damages, whether or not repurchase is occurs. 4. Disputes The Contract Disputes Act (CDA) of 1978 established procedures and requirements for asserting and resolving contract claims against the Government. Unlike bid protests, which are submitted prior to the time that a contract is awarded, contract claims are filed during contract performance for reasons that are various and varied. A claim is a written demand by one of the contracting parties seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of contract terms, or other relief arising under or relating to a contract. Claims arising under or relating to a contract include those supported by remedy granting clauses (such as the Changes clause, breach of contract claims, and mistakes alleged after award. In general, a claim must be properly certified and submitted to the Contracting Officer fora final decision on the claim. Once the Contracting Officer issues a final decision, the decision is binding on the parties unless appealed. To appeal a final decision by the Contracting Officer, a contractor must timely file its appeal at either the United States Court of Federal Claims (COFC) or with the Boards of Contract Appeals (i.e., the Armed Services Board of Contract Appeals (ASBCA) for DoD contracts or the Civilian Board of Contract Appeals (CBCA) for non-DoD contracts). Download 4.49 Mb. Share with your friends:
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