Assignment 5: Terminating Government Contracts
According to the Congressional Budget Office, Civilian agencies obligated over $435 billion in fiscal year 2012 for services–80 percent of total civilian spending on contracts. Service acquisitions have suffered from termination of contracts. Imagine that you are a contracts officer for the Internal Revenue Services (IRS), and that your supervisor has tasked you with the procurement of a new software system for processing tax returns.
Review â€œContracting Officerâ€™s Decisionâ€ in Chapter 22 of the textbook and the information from the following Websites:
- Federal Acquisition Review (FAR) â€œ49.402-1 The Governmentâ€™s Rightâ€ to â€œ49.402-3 Procedure for Defaultâ€
- Federal Acquisition Review (FAR) â€œ52.233-1 Disputesâ€
- Federal Acquisition Review (FAR) â€œ52.249-2 Termination for Convenience of the Government (Fixed-Price)â€
Write a six to eight (6-8) page paper in which you:
- Examine the manner in which termination for default can be categorized as both a cost savings measure and a creator of additional cost. Provide one (1) example to support your response.
- Conclude the manner in which the termination for default clause impacts contracts when it is also both a cost savings method and a creator of cost mechanism. Provide a rationale for your response.
- Provide your opinion as to whether or not the Contract Disputes Act overlaps the FARâ€™s Standard Disputes clause. Justify your position. Suggest language that would merge the two (2) acts, thus streamlining the dispute process and making it timelier.
- Predict two (2) ramifications of a failure to terminate the entire contract and opting to engage in a partial termination. Compare and contrast the major differences between a partial termination and a deductive change. Provide two (2) examples that depict the necessity of each of these types of termination clauses.
- Debate whether or not the contracting officer holds too much power where the awarding of government contracts is concerned. Propose a checks-and-balances system that provides two (2) standards for ensuring that the contracting officer: a) does not have the sole choice in vendor selection; and b) is not in a position to be enticed to award a contract that would invite impropriety. Provide a rationale for your response.
- Use at least five (5) quality academic resources in this assignment. Note: Wikipedia does not qualify as an academic resource.
- Be creative in the use of example by using current cases or new articles and not surpassing within the last three (3) years.