It is common for government contractors to file claims on federal projects where there are government-directed changes to the contract that add time or scope.
But what if – instead of adding time and/or scope – the government de-scopes work from the contract by issuing a partial termination? A recent successful claim shows that the contractor can still recover its increased costs.
In a decision by the Armed Services Board of Contract Appeals (ASBCA), the Board considered a contract for the provision of food service operations at 18 dining facilities at Fort Leonard Wood, Missouri. After two years, the agency issued a partial termination for convenience and removed six facilities from the contractor’s scope. The contractor continued to provide services at the remaining 12 facilities, but could not reach an agreement with the government for the cost of completing the contract.