Terminating Government Contracts

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Terminating Government Contracts

According to the Congressional Budget Office, Civilian agencies obligated over $435 billion in fiscal year 2012 for services--80 percent of total civilian spending on contracts. Service acquisitions have suffered from termination of contracts.  Imagine that you are a contracts officer for the Internal Revenue Services (IRS), and that your supervisor has tasked you with the procurement of a new software system for processing tax returns.

Review “Contracting Officer’s Decision” in Chapter 22 of the textbook and the information from the following Websites:

• Federal Acquisition Review (FAR) “49.402-1 The Government’s Right” to “49.402-3 Procedure for Default” 


• Federal Acquisition Review (FAR) “52.233-1 Disputes”


• Federal Acquisition Review (FAR) “52.249-2 Termination for Convenience of the Government (Fixed-Price)”

Write a six (6) page paper in which you:

1. Examine the manner in which termination for default can be categorized as both a cost savings measure and a creator of additional cost. Provide one (1) example to support your response.


2. Conclude the manner in which the termination for default clause impacts contracts when it is also both a cost savings method and a creator of cost mechanism.  Provide a rationale for your response.


3. Provide your opinion as to whether or not the Contract Disputes Act overlaps the FAR’s Standard Disputes clause. Justify your position. Suggest language that would merge the two (2) acts, thus streamlining the dispute process and making it timelier.


4. Predict two (2) ramifications of a failure to terminate the entire contract and opting to engage in a partial termination. Compare and contrast the major differences between a partial termination and a deductive change. Provide two (2) examples that depict the necessity of each of these types of termination clauses.


5. Debate whether or not the contracting officer holds too much power where the awarding of government contracts is concerned. Propose a checks-and-balances system that provides two (2) standards for ensuring that the contracting officer: a) does not have the sole choice in vendor selection; and b) is not in a position to be enticed to award a contract that would invite impropriety. Provide a rationale for your response.


6. Use at least five (5) quality academic resources in this assignment. Note: Wikipedia does not qualify as an academic resource.

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