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Limitation of Funds Clause Puts Bite in Termination Recovery

Client Alert | less than 1 min read | 12.30.13

In The Boeing Co. (Dec. 3, 2013), the Armed Services Board of Contract Appeals served a reminder of the risks Limitation of Funds (LOF) clauses pose for contractors, who normally must assure that funding on their contracts will be adequate not only for work underway but also for recovery of prime and subcontract costs in the event of a termination for convenience. The Board refused to allow recovery of costs incurred in excess of the funded amounts, holding that, if the contractor incurred costs in excess of the allotted funding, "it was a volunteer and did so for its own account."


Insights

Client Alert | 4 min read | 08.25.26

Recent Court Decision Highlights Effectiveness of “Second Bite” Protests

A recent U.S. Court of Federal Claims (COFC) decision serves as an important reminder that when the Government Accountability Office (GAO) denies a protest, this is not necessarily the end of the road. Often, contractors retain the right to file a new protest at the COFC, which conducts its own de novo review of the procurement record. This so-called “second bite at the apple” protest is a powerful tool as the COFC’s recent decision in Chugach Logistics & Facility Services JV, LLC v. USA makes clear....