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Default Determination - Term Paper Example

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Default termination or termination by default is the standard contract clause which enables/gives the customer the prevalent rights to terminate unilaterally the contractor if the contractor fails to perform or work according to the terms given/ agreed in the contract. In this…
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Default Determination
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This paper thus is going to handle and talk about the termination by default or default termination to every detail while analyzing everything that it entails, as well as the remedy of default termination in the context of federal procurement in reference to the nature of the course. In termination for default, the government always wants to have the upper hand on the contract hence always trying to make sure that the contract is always to their advantage. So in that case, in order for the government to prevail in the defense of a termination by default, the government must establish that the termination of the contract by default prior to the contract completion date was effective, proper and correct.

Since this default termination is such a drastic action, the federal procurement must show how its determination was well grounded and had no hidden motive or agenda, and is supported by solid evidence. Moreover, the agency must show/demonstrate through convincing evidence that there was no reasonable likelihood that the contractor could complete the work in time as agreed. The untimely performance of work which does not affect the critical path does not provide a basis for a default termination.

The above said, there are suggestions that it is improper for the government to terminate a contractor for his or her failure to make progress where the contactor had reason to be expected to complete the work to finish the job contracted fro in due time. In such cases the federal procurement must consider all available factors and reasons when they are determining whether to terminate a contractor using the default termination. Moreover, if the totality of the state of affairs shows or indicates the unsupported and arbitrary nature of the decision to terminate for default the law requires conversion of the action to termination for convenience.

There are laws put in reference to this type of termination

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