Case Study Example | Topics and Well Written Essays - 500 words - 20

Case Study Example Created in the contract were a series of award fees eligible to Textron at the end of each of the performance period based on its performance during that period. However, the decision as to the amount that Textron would receive and if so how much was left to the discretion of the Fee Determining Official ("FDO") based on the FDOs assessment of Textrons performance in several specified areas. It was a struggle funding the project, since from summer of 1985 up to the end of 1987 Textrons expenditures under the contract exceeded the allocated funding. Even before the award of the contract, the contracting officer made it clear to Textron that there was a possibility of the SDI[O] stopping the funding of EMRLD. The problem became worse in 1987 when both SDIO and Air Force stopped funding the project. After completing its close up work, Textron on December 19, 1990 submitted a termination settlement proposal to the government requesting $13,428,348 over and above the $113,479,301 paid to date under the contract. The CPAF contract called for a zero base fee and an as award fee not subject to the Termination or disputes clauses as to the payment and amount of the award fee. During the course of the contract, the contracting officer repeatedly reminded Textron that the LOF clause in the contract remained in effect. The language of the contract did not allow Textron to receive any extra amount after the termination b of the contract. According to the court’s rationale, Textron failed to prove beyond any reasonable doubt that it was in deed eligible for the extra payment. According to the language of the contract, the court ruled in favor of the government. Since Textron was aware of the likelihood of the government stopping the funding of the project, and as expressed in the contract that there would be no award of the termination fee, then the court ruled in