1. Home
  2. |Insights
  3. |ASBCA Declares Material Breach, Allows Contractor To Stop Work

ASBCA Declares Material Breach, Allows Contractor To Stop Work

Client Alert | less than 1 min read | 09.07.04

In a declaratory action in SUFI Network Servs., Inc. (Aug. 18, 2004), the Armed Services Board of Contract Appeals agreed with the contractor supplying telephone services to Air Force lodgings in Germany that the Air Force had improperly directed it to allow lodging guests to use their calling cards from the contractor's phones and thereby avoid paying long-distance charges to the contractor. Because this resulted in a significant diminution of the contractor's revenues, the board also found the AF direction to be a material breach which allows the contractor to stop work and collect lost profit damages.

Insights

Client Alert | 14 min read | 03.13.26

AI for Government: 7 Days for Contractor Comments on GSA Proposed Contract Clause for AI Systems

On March 6, 2026, the General Services Administration (GSA) issued a significant proposed contract clause, GSAR 552.239-7001, Basic Safeguarding of Artificial Intelligence Systems (“Clause”), for inclusion in GSA Schedule solicitations and contracts for AI capabilities.  The proposed clause would impose substantial new requirements related to AI sources, intellectual property rights, data use, change management, and performance standards.  The Clause would also take precedence over any other contract terms (including commercial licensing terms) related to AI, including a Seller’s terms of sale and service to which the Government had previously agreed.  GSA requests comments by March 20, 2026....