Gov't Contracts Rulings Hold Termination Challenge Tips

Any default termination can be devastating for a contractor, especially an unwarranted one.

Challenging a default termination can seem like a daunting, David versus Goliath endeavor, but recent cases out of both the U.S. Court of Federal Claims and the U.S. Civilian Board of Contract Appeals highlight several ways such challenges can be successful.

We discuss two such cases and the lessons contractors facing performance difficulties can learn from them.

Schneider Electric

First, in Schneider Electric Buildings Americas Inc. v. U.S.,¹ the COFC considered the propriety of the government's "drastic decision of terminating Schneider for default after receiving 91.45% of the value of the contract" for implementation of certain energy conservation measures at a government facility.