Termination For Convenience: An Agency’s Absolute Right?

For those unfamiliar with government contracting, the concept of the government's right to terminate a contract for its own convenience can be an unpleasant surprise. A recent case highlights just how broadly courts interpret the government's rights, but also provides some limits that should prove useful to contractors gauging their ability to challenge such terminations.

A termination for convenience provision is written into almost every government contract. Even where the clause is omitted from the contract, courts typically will "read into" government contracts a termination for convenience clause (under the "Christian" doctrine, which will be discussed in a future GovCon Now post).