Paragon Defense Solutions, Inc.

September 19, 2025Judge Eyester

Denied / Government PrevailedTermination for DefaultDelay / Disruption / Suspension

Paragon Defense Solutions, Inc. appealed the termination for default of its contract with the Defense Logistics Agency due to failure to deliver towbars by the specified date. The Board denied the appeal, affirming the termination was justified.

Material Facts

Paragon submitted its offer in response to solicitation No. SPE71-22-R-0017 on September 14, 2022.
DLA issued fixed-priced contract No. SPE7L1-23-C-0011 to Paragon in the amount of $957,600 for 72 motor vehicle towbars for delivery by August 7, 2023.
The contract included a follow-on option quantity of 36 towbars, which could be exercised by a modification no later than July 24, 2023.
DLA requested Paragon expedite the order of 72 towbars on November 18, 2022.
Paragon delivered 26 towbars by December 2023, but failed to meet the required delivery dates.
DLA issued a show cause letter on April 1, 2024, stating it was considering terminating Paragon for default.
DLA issued a unilateral modification decreasing the quantity of items to be delivered to zero on April 15, 2024.

Parties

Appellant: Paragon Defense Solutions, Inc.
Respondent Agency: Defense Logistics Agency
Contract Number: SPE7L1-23-C-0011

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