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Profit Recoverable in Commercial Item Termination

Client Alert | less than 1 min read | 01.05.15

In SWR, Inc. (Dec. 15), the ASBCA ruled that the termination for convenience of a commercial item contract, before any services had been ordered, still entitled the contractor to "fair compensation" under a more expansive interpretation of "reasonable charges" than the board had previously endorsed, including start-up costs, travel expenses, wages, forfeited deposits, lease mitigation charges, settlement expenses, attorney fees, and other operating expenses. With one dissent, the board also held that contractors are entitled to a reasonable profit on all termination-related charges, despite the lack of express allowance for profit in the standard Commercial Items terms.

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Client Alert | 3 min read | 07.10.26

Federal Circuit Clarifies Application of Blue & Gold: Proposal Submission Deadline, Not Award, is the Operative Time for Filing

In Utech, Inc. v. United States, No. 24-1586 (Fed. Cir. June 24, 2026), the U.S. Court of Appeals for the Federal Circuit clarified that in most cases, a pre-award protest must be filed before the proposal submission deadline to avoid the Blue & Gold waiver rule.  This decision, while nonprecedential, is in line with U.S. Government Accountability Office (GAO) precedent, which has long held that pre-award protests must be filed before the proposal submission deadline....