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Whether the issue was a government failure to cooperate with the contractor in performance, a termination for default or a claim against the contractor, any improper government conduct was protected by a heavy standard of proof that never shifted the onus back to the government to justify highly questionable conduct. Here we have a clear case where the government is at risk, the assets of the winner are so small that DOD would never receive funds on a Termination for Default. The court also rejected the taxpayer's argument that the detailed specifications and performance requirements in defense contracts, including possible termination for default, meant payment was contingent; that is, the taxpayer argued that unless the company produced a useful product, the government had no contractual obligation to pay. |
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