'Sovereign capacity,’ new sequester hammer?

An obscure part of federal contracting laws could give agencies unilateral power to cancel or change contracts, leaving contractors with little recourse if sequestration forces automatic budget cuts, Rueters is reporting

A recently released Congressional Research Service report states that the government can avoid liability for contract changes if it acts “in its sovereign capacity,” the news agency quotes the report as saying.

Industry has been vocal in warning the government that it would face billions of dollars in fees for changing contracts, but the research service report said the fees can be avoided.


Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close
 Top 100 Promo 2016
contracts DB
SEARCH

Trending

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More