Peritia LLC

Material Facts

• Peritia held a contract to provide Defense Travel System Administration services for the U.S. Army at Shaw Air Force Base in Sumter, South Carolina.
• The Army terminated Peritia’s contract for cause under FAR 52.212-4(m) on March 24, 2026.
• Peritia’s challenge to the for-cause termination requested conversion to a convenience termination and further relief associated with the termination-for-convenience settlement process.
• The Army converted the for-cause termination to a convenience termination on April 14, 2026.
• The conversion notice stated that Peritia could submit a termination settlement proposal under FAR 52.212-4(l).
• Peritia submitted a termination settlement proposal designated as a certified claim.
• The Army issued a final decision on Peritia’s claim for convenience termination costs and breach damages.
• Peritia appealed the Army’s final decision in ASBCA No. 64586, which was consolidated with ASBCA No. 64495.
• Peritia argued that the conversion was a litigation-risk-avoidance strategy and that the Army’s conduct involved bad faith.
• Peritia did not allege that the Army intended to reinstate the for-cause termination.

Parties

Appellant

Peritia LLC

Respondent Agency

U.S. Army

Contracting Agency

Army

Contract Number

W51H72-25-P-A002