Government Procurement in Times of Fiscal Uncertainty

Description

When confronted with actual or potential funding gaps, funding shortfalls, or budget cuts, the federal government has a number of options as to prospective and existing procurement contracts. Many of these options arise from contract law and, in particular, certain standard clauses included in federal procurement contracts. Among other things, these clauses allow the government to (1) unilaterally change certain terms of the contract, such as the specifications or the method and manner of performing the work; (2) delay, suspend, or "stop work" on the contract; and (3) terminate the contract for the government's convenience. However, courts have also found … continued below

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34 pages.

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Manuel, Kate M. & Lunder, Erika K. April 6, 2012.

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This report is part of the collection entitled: Congressional Research Service Reports and was provided by the UNT Libraries Government Documents Department to the UNT Digital Library, a digital repository hosted by the UNT Libraries. It has been viewed 146 times. More information about this report can be viewed below.

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Description

When confronted with actual or potential funding gaps, funding shortfalls, or budget cuts, the federal government has a number of options as to prospective and existing procurement contracts. Many of these options arise from contract law and, in particular, certain standard clauses included in federal procurement contracts. Among other things, these clauses allow the government to (1) unilaterally change certain terms of the contract, such as the specifications or the method and manner of performing the work; (2) delay, suspend, or "stop work" on the contract; and (3) terminate the contract for the government's convenience. However, courts have also found that the government has certain rights because it is the government, regardless of whether the contract provides for these rights. Such rights are commonly described as "inherent rights," and include the right to terminate the contract for convenience and, according to one tribunal, the right to suspend work.

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34 pages.

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Congressional Research Service Reports

The Congressional Research Service (CRS) is the public policy research arm of Congress. This legislative branch agency works exclusively for Members of Congress, their committees and their staff. This collection includes CRS reports from the mid-1960's through 2018—covering a variety of topics from agriculture to foreign policy to welfare.

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  • April 6, 2012

Added to The UNT Digital Library

  • June 15, 2012, 10:07 a.m.

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  • Aug. 11, 2015, 1:35 p.m.

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Manuel, Kate M. & Lunder, Erika K. Government Procurement in Times of Fiscal Uncertainty, report, April 6, 2012; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc86625/: accessed November 8, 2025), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.

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