How to assess a CE for instructing the Contractor to stop half way through a Task Order

Using the TSC, an X19 task order was instructed to the Contractor to complete a series of repetative tasks over a 5 month period. During month 3 and approximately half way through the task order programme the Service Manager instructed the Contractor to stop the works and notified a CE and instructed the Contractor to submit a quote.

The Contractors assessment included the Defined Cost of down time for his labour whilst he redeployed them and similar Defined Costs for the abortive costs of subcontractors and equipment. All this Defined Cost is supported by records and has the relevant fee % added, which the Service manager agrees with. However the Contractor is also assessing the loss of his profit and overhead on the value of the task order that was not completed. The Service Manager does not accept this is a correct assessment and has instructed the Contractor to re-submit his quotation.

How should the Contractor assess this CE?


The clause to look at is 63.2 (as well as the rest of clause 63 more generally).

From what you say, the Contractor appears to be assessing the compensation event in accordance with the contract AND also bringing in from somewhere his loss of profit and overhead on the Task Order. As you are not terminating the contract in accordance with clause 90 (and even if you were, the fee percentage would be applied to the remainder of outstanding work compared with the Prices at the Contract Date, not added in work), I do not see where the Contractor thinks he gets this entitlement from.

Ask him to point to the specific clause !