Hanley Industries, Inc.

August 12, 2014Judge Paul

Denied / Government PrevailedContract InterpretationTermination for DefaultFailure to Prosecute / DismissalDCMA Involved

Hanley Industries, Inc. appealed the termination of its contract for default by the U.S. Army, which was based on alleged failures to meet contractual requirements. The Board upheld the termination, finding that the government had justified its actions.

Material Facts

The U.S. Army issued Contract No. W52P1J-05-C-0076 to Hanley Industries, Inc. to supply MK45-1 Electric Primers.
The contract was a firm-fixed-price contract with a total amount of $1,870,812.80.
Hanley failed to meet the delivery date for production lot 2, which was set forth in Modification No. POOO 10.
The government had previously extended the delivery dates for both the First Article Test and production lot 1 multiple times.
The contracting officer issued a show cause notice to Hanley on 2 June 2008, citing failures to cure conditions endangering performance under the contract.
Hanley responded to the show cause notice but failed to provide satisfactory evidence to justify its performance issues.

Parties

Appellant: Hanley Industries, Inc.
Respondent Agency: Department of the Army
Contract Number: W52P1J-05-C-0076

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