64321

US Military Corp

September 24, 2026Judge Arnett
Sustained / Appellant PrevailedTermination for DefaultContract InterpretationCommercial Item

US Military Corp appealed the Navy’s termination for cause of a purchase order for the lease of forklifts. The Board held that USMC’s communications did not constitute anticipatory repudiation, sustained the appeal, and converted the termination for cause to a termination for the convenience of the government.

Material Facts

  • The Navy’s Purchase Order required two 3-ton forklifts meeting the Statement of Work specifications, with delivery required on or before July 28, 2025.
  • The Purchase Order did not specify a brand name, make, or model of forklift.
  • USMC signed the Purchase Order on July 21, 2025.
  • The Purchase Order included a requirement for an enclosed cab with heat and an operator cooling fan, with air conditioning preferred, and provided for a rain canopy only if no bidder could meet the stated specification without an exception.
  • On July 23, 2025, USMC advised that the two forklifts with cabs were no longer available and identified alternative diesel forklifts.
  • USMC subsequently communicated about gasoline forklifts and Toyota forklifts with a rain canopy and fan.
  • The contracting officer stated on July 24, 2025, that a termination for cause would issue following confirmation that USMC was unable to fulfill the equipment requirements.
  • The Navy issued the termination for cause modification on July 25, 2025, three days before the delivery deadline.
  • USMC’s final communication before termination stated that it could deliver two Toyota 6K forklifts with a rain canopy and fan that met the specification.
  • USMC’s response to the Navy’s requests for admission did not constitute an admission that it could not provide contract-compliant forklifts by the delivery date.

Parties

Appellant
US Military Corp
Respondent Agency
Department of the Navy
Contracting Agency
Department of the Navy
Contract Number
N39040-25-P-0117
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