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pat_k

(11,528 posts)
1. Hope they have a strong case to take to the U.S. Court of Federal Claims.
Tue Jul 8, 2025, 09:29 PM
Jul 8

I had no idea there were so many federal courts with specialized jurisdictions. First new one on me was the U.S. Court of International Trade. There are several others: https://law.justia.com/constitution/us/article-3/05-courts-of-specialized-jurisdiction.html


From the AI summary it sounds like the U.S. Court of Federal Claims is the proper venue for a number of lawsuits against the shameful conduct we are seeing.

The U.S. Court of Federal Claims has a significant role in cases involving the cancellation or termination of multiyear government contracts.

Key aspects of multiyear contract cancellation under the purview of the Court of Federal Claims include:

Jurisdiction: The Court of Federal Claims handles various claims against the government, including contract disputes. It is frequently the appropriate court for contractors seeking damages after a multiyear government contract is canceled, particularly for claims over $10,000 under the Tucker Act.

Cancellation under specific clauses: Government contracts may contain clauses like FAR 52.217-2 that detail procedures and compensation for cancellation in later years due to lack of funding. If canceled under such a clause, the contractor can receive a cancellation charge, limited by a contract-specified ceiling, covering costs amortized over the contract period plus a reasonable profit.

Termination for Convenience: Any reduction in contract requirements not covered by the specific cancellation clause or termination for default is treated under the Termination for Convenience clause. This clause allows the government to cancel a contract when it's in the government's interest, even without contractor default. However, this right cannot be exercised in bad faith or as an abuse of discretion.

Damages for wrongful termination: If a termination for convenience is found to be arbitrary, capricious, or in bad faith, it may be considered a breach of contract. In such instances, the contractor may recover allowable costs, reasonable profit on work completed, and potentially lost profits on the terminated portion.

Claim submission: Claims under the cancellation clause are submitted and computed similarly to claims under the Termination for Convenience clause. Claims should generally be filed within one year of the relevant notification or deadline, unless extensions are granted.

The Court of Federal Claims plays a significant role in resolving disputes concerning the cancellation and termination of multiyear government contracts, ensuring fair compensation for contractors based on contract terms and legal principles.


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