1. Home
  2. |Insights
  3. |"Yardstick" Measures Failure to Progress in A-12 Default Termination

"Yardstick" Measures Failure to Progress in A-12 Default Termination

Client Alert | 1 min read | 05.11.07

In the latest opinion in the 16-year A-12 litigation, McDonnell Douglas Corp. v. United States, No. 91-1204C (Fed. Cl. May 3, 2007) the Court of Federal Claims, on remand from the Federal Circuit, upheld default termination of the fixed-price research and development contract based upon a failure to make progress -- even though the full contract "had no completion date at [the time of] termination." With no completion date for the full contract, the Court instead used a "yardstick" to measure the contractors' progress, holding that (1) the Court could use a series of interim deadlines for the production of prototype aircraft to define both the "performance required" and the "time remaining for performance"; and (2) at the time of termination, there was sufficient information available for the contracting officer to have concluded there was no reasonable likelihood of delivery under those deadlines (even if the contracting officer did not, in the event, make the default termination decision based upon that "available" information).

Insights

Client Alert | 4 min read | 08.21.25

FLSA Overtime Reporting and Withholding

The One Big Beautiful Bill Act (the Act), signed on July 4, 2025, allows a deduction from an individual’s personal tax return on Form 1040 for “qualified overtime compensation” as defined in new Code § 225. The amount that can be deducted from the employee’s return is capped at $12,500 with the maximum then adjusted down if the employee’s AGI exceeds certain limits. This deduction is permitted in 2025....