Excusable Delay: Government’s Failure To Extend Was “Constructive Acceleration”

Federal contractors not so infrequently find themselves in a position where they are unable to complete performance of a contract by the agreed-upon deadline. So, what happens when the delay is neither party’s fault, but the government denies extension of the period of performance or provides inadequate extensions?

In IAP Worldwide Services, Inc. (ASBCA Nos. 59397, 59398, and 59399), the Armed Services Board of Contract Appeals found under the legal theory of “constructive acceleration” that the U.S. Army Corps of Engineers was liable for extra costs incurred by IAP due to the Corps insistence of timely contract delivery despite excusable delays.

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Bridge Contracts Need Improved Oversight, Says GAO

In a recent GAO review of three agencies’ use of bridge contracts, the agencies in question had “limited or no insight into their use of bridge contracts.”

According to a recent GAO report, a lack of effective guidance for the use of bridge contracts contributed to potential misuse–such as several so-called “bridge” contracts that were longer than three years in duration.

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