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Victoria

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Background:

You are the Chief Financial Officer of the Contractor – DroneTrainers LLC. You have been generally familiar with the Air Force contract on which troubles were experienced, but until recently this was somebody else’s problem.

Significant delays and disruptions were experienced on the Contract resulting in significantly increased costs and customer dissatisfaction. Your company submitted an REA and, after fact-finding, auditing and negotiations the Air Force Contracting Officer issued a final decision denying every aspect of your company’s REA and offering no contract price adjustment. Shortly thereafter, nearing the completion of Option Year One performance, the Air Force Contracting Officer terminated the Contract for default (“T4D”). Your company filed a lawsuit for wrongful termination at the ASBCA and prevailed. This action converted the T4D into a termination for convenience (“T4C”).

The Contract incorporates FAR 52.249-2 -- Termination for Convenience of the Government (Fixed-Price). In accordance with this clause, and FAR Part 49, members of your staff have prepared a Termination Settlement Proposal (“TSP”) for your review.

Assignment:

Analyze the information provided in the draft TSP prepared by your staff personnel and provide them with a point sheet of less than five pages (i.e., Word) or slides (i.e., PowerPoint). Your point sheet is to explain what mistakes you have found and what changes need to be made to the TSP, and why. It is especially important to you that the TSP be accurate in every respect since you will be signing the TSP as a representative of your Company. Your team will make a 5-minute presentation to your staff personnel to make sure that they understand your point sheet.

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[ 1 ]. This is the same contract which was the subject of Cases One and

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