FAR Default and Dispute Research Paper Example | Topics and Well Written Essays - 1750 words

FAR Default and Dispute - Research Paper Example Despite the establishment of these laws, it is common that disputes arise in the process contracting leading to termination of contracts through a legal process. This paper will examine the FAR process of acquisition, settling disputes that arise within the acquisition process and the available mechanisms through which these disputes can be settled. By considering the acquisition plan that is used by the government, this paper will provide various recommendations that can be sued in to improve the government procurement procedures. FAR provides two mechanisms through which the government can terminate contracts they have entered with suppliers. Either termination for default or termination for convenience can be applied depending on the situation that arises during the contract period. Termination of contracts is one of the strategies that the government employs to streamline its operations with the supply chain and network to ensure that the procurement process is effective and with in the allocated budgets and to accommodate changes that may arise during the procurement process. ... Termination by default takes a legal procedure in-court where the two parties in the contract are required to provide a tangible evidence to prove the authenticity of termination by default. If the government intends to follow this route, then it must prove in a court of law that the contract failed to deliver goods and services with respect to the terms of the contract concerning the quality, quantity, schedule or any other issues states implicitly or explicitly in the bond. The contractor is required to prove to the court of law that the omissions or defiance of the contract terms was excusable or outside the contract agreement. The court judgment is delivered after the enough evidence is tabled by both parties, enough to form a basis for a court ruling. As the number of government contracts increases, cases involving termination of contract for default have become more common. However, the contractor is allowed to appeal if they feel that the termination for default was not a fair part of the contract (Keyes, 2003). Numerous cases have emerged during the government procurement process that has led the government to resort to termination for default. For instance, the government of US terminated a contract for default after a contractor failed to deliver goods that included wire rope terminals and the court upheld the case. In addition, the government demanded a compensation of $14, 457 for goods that were rejected within a warranty period for on the ground that the contractor failed to meet the quality requirements of the contract (Keyes, 2003). The court ruled in favor of the government after assessing the evidence that proved that the contractor had failed to uphold the terms