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Susan Linehan's avatar

I looked into the regulations on government contract "terminations for convenience." Yes, clauses allowing it are in pretty much every government contract. What the regs ALSO require is that the government pay for incurred costs (including those getting ready to complete the contract work) AND a reasonable profit on the work remaining in the contract. See paragraph g of https://www.acquisition.gov/far/52.249-2

Basically, the government doesn't actually SAVE any money by cancelling these contracts.

The contractors are "made whole" thought the government COULD try to claim that because of tariff increased costs there wouldn't have been a profit. The ONLY reason to cancel these contracts is animus towards anything related to climate change.

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