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Partial Termination Doesn't Allow Repricing In Commercial Services Contract

October 26, 2004

In Individual Dev. Assocs., Inc. (Sept. 9, 2004), the ASBCA rejected a contractor’s claim that the partial termination for convenience of a contract for commercial educational services was improper, holding that various provisions showing the services had been offered only as an “inseparable whole” did not explicitly abrogate the government’s right to partially terminate the contract and, therefore, applied only to offer and acceptance or pricing, not termination. The Board further held that the applicable commercial termination provision (in contrast to the FAR’s standard termination for convenience clause) does not give contractors any right to an equitable adjustment when a partial termination increases the cost of unchanged work.

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J. Chris Haile
Partner – Washington, D.C.
Phone: +1.202.624.2898