Allows government to terminate your contract if you breach or fail to perform.
Applicability: Included in all government contracts.
Key Requirements
Maintain compliance with all contract terms and schedules
Provide timely notice if you foresee performance issues
Cure default within period specified in CO notice
Understand liability for excess reprocurement costs if terminated for default
Common Issues & Pitfalls
Missing delivery dates or quality standards without notice to CO
Not understanding cure period obligations
Failing to recover if terminated for default (Government recovers damages)
Not maintaining records of performance to defend against default charges
Contractor Guidance for Your Bid
Default termination is the most serious contract action. If terminated for default, government can recover costs to reprocure services from another vendor—which are often 20-40% above your contract price. To avoid default: maintain schedule discipline, communicate problems early, request extensions before you miss deadlines, and keep detailed performance records.