Federal Circuit: Termination for Convenience Clause Trumps Cost-Sharing Provision
Jacobs Engineering has won its case against the federal government in a dispute over the proper sum to be awarded a government contractor in the event of a convenience termination. The contract was written on a cost-sharing basis, pursuant to a federal regulation allowing such contracts, and Jacobs was to be paid only 80% of its costs under this arrangement and no fee.
But when the government said it ran out of money for the project (a gasification facility), it nixed the project for convenience and Jacobs promptly submitted a settlement proposal embracing "all" of its costs as seemingly allowed under the separate convenience termination clause.
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