Accession Number : ADA319964

Title :   The Role of Discretion In Terminations for Default.

Descriptive Note : Master's thesis,

Corporate Author : AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH

Personal Author(s) : Pearson, Rebecca E.

PDF Url : ADA319964

Report Date : 09 JAN 1997

Pagination or Media Count : 99

Abstract : The consequences of a termination for default in a government contract are severe. A default termination may cause a contractor to lose everything it has put into a contract, as well as future business. It may also jeopardize the contractor's ability to obtain future government contracts. A termination for default may serve as a basis for finding a contractor non-responsible or for downgrading its past performance rating. Additionally, it may impair the contractor's ability to get future bonding. In a fixed price type contract for supplies, if the Government terminates for default and does not take possession of the supplies, it does not have to compensate the contractor for any of its work and the contractor must return any progress payments it received to the Government. The contractor remains liable for excess reprocurement costs. This is true even where the default is based on a minor breach such as insignificant delays in completing performance or small defects in the quality of performance. Even in other types of contracts, where the contractor's forfeitures are less severe, termination for default may subject the contractor to excess reprocurement costs or other damages.

Descriptors :   *UNITED STATES GOVERNMENT, *PERSONNEL MANAGEMENT, *CONTRACTORS, *SEPARATION, PERFORMANCE(HUMAN), THESES, COSTS, QUALITY, RATINGS.

Subject Categories : Government and Political Science
      Personnel Management and Labor Relations

Distribution Statement : APPROVED FOR PUBLIC RELEASE