TOPIC: Your Contracting team has awarded a Cost-plus Fixed Fee Low Cost Technically Acceptable Level of Effort Contract to a small business for the research development and build of a working prototype

screen which will be incorporated into virtual reality heads up display unit for Special Operations. The

Contract was awarded using a Low Cost Technically Acceptable evaluation method and was synopsized

as a total small business set aside in order to meet your organizations small business contracting goals

and objectives, even though your market research indicated that there we no small business capable of

developing and producing this item. The contractor is six months behind schedule and has expended

75% of the total funds but has only completed 45% of the development work. The contract is divided up

into main sections. The first is the design of the system and the second part is to build a prototype. The

program office is saying that there may not be enough funding in their budget to pay for the all the

contractors' cost overruns. This screen is critical for the next phase of the heads-up display unit and will

be incorporated into another system which is being built by another company. This delay and cost

overrun is going to hold up other phases of the program. Your SES wants to terminate this contractor for

default, but your Commanding General wants to continue with the program. The contractor claims that

the work is too complicated and that they were given technical specifications that were ambiguous as

well direction from the General that were incorrect on how to proceed with the program, which has

caused them to fall behind schedule and have a cost overrun. Now it is your job to come up with a

solution on how to resolve and or mitigate this issue. What are your Options and how would you

implement these options contractually? Also, the General and your SES want this to be a teachable

moment and they are asking your team to develop new policies, procedures, and guidelines on how to

resolve or mitigate this issue and to prevent this happening in the first place

Question: How can termination for convenience apply to this given situation as a solution?