New Era Contract Sales, Inc.

Material Facts

• New Era Contract Sales, Inc. was awarded an indefinite quantity Basic Contract No. SPM750-06-D-746I for fuel pumps.
• The government terminated three delivery orders for default due to New Era's failure to deliver the parts ordered.
• New Era claimed its failure to deliver was excused because its subcontractor refused to honor previously quoted prices.
• The contract was a firm fixed-price contract without an economic price adjustment provision.
• New Era's subcontractor would not honor the prices due to a change in the discount structure from the manufacturer, Isuzu Motors.
• The government issued a Show Cause notice to New Era after the delivery dates had passed without performance.
• The government terminated the delivery orders citing FAR 52.249-8, which outlines conditions for default termination.

Parties

Appellant

New Era Contract Sales, Inc.

Contract Number

SPM750-06-D-746I