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Partial Termination Doesn't Allow Repricing In Commercial Services Contract

Client Alert | less than 1 min read | 10.26.04

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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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....