The termination of an emergency mail transportation contract constituted a breach, according to the Postal Services Board of Contract Appeals, because the oral contract did not provide the government with a termination right. The parties did not dispute they entered into an enforceable oral contract, which the government terminated one week after award when the prior contractor returned. The contractor argued the oral contract was for a six-month term that could not be terminated earlier, while the government contended it had the right to terminate on 24-hours notice without liability. According to the government, the contractor corroborated the parties' agreement on the termination right when she subsequently signed PS Form 7405A, Transportation Services Proposal and Contract for Emergency Services, which included a no-cost termination on notice provision.
(The news featured above is a selection from the news covered in the Government Contracts Report Letter, which is published weekly and distributed to subscribers of the Government Contracts Reporter. )