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Technology Replacement Clause Requires Actual Replacement

Client Alert | less than 1 min read | 09.28.10

Some technology contracts have included "replacement" clauses which put limits on the agency's use of its termination for convenience power to flip to another vendor simply to get a better price. The Federal Circuit in McHugh v. DLT Solutions, Inc. (Sept. 23, 2010), held that, when the agency in such a clause had only agreed not to "replace" the leased software with "functionally similar equipment and/or software" for one year after termination or expiration of the lease, it did not breach when it did not install the leased software and continued to use its prior software.

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Client Alert | 2 min read | 07.24.26

GAO Finds That Challenge to Agency’s Failure to Comply With DFARS Requirement Comes Too Late

GAO’s recent dismissal of the protest in Tyonek Technical Innovations, LLC, B-424364, B-424364.2, June 30, 2026, carries an important lesson for government contractors: if you believe solicitation terms conflict with a statute or regulation, you must raise that challenge before proposals are due—not during discussions or afterwards....