GAO on NASA Contract Termination Liability Risks
NASA Needs to Better Assess Contract Termination Liability Risks and Ensure Consistency in Its Practices
“We found that NASA’s acquisition professionals generally do not monitor or track the potential termination liability costs of its contractors nor does the FAR require them to do so. The agency has not issued detailed instructions or provided guidance to direct contracting officers and others on how to monitor or track termination liability and to supplement the reliance on the relevant FAR provisions. As a result, resource analysts and financial managers inconsistently monitor and fund potential termination liability across the projects we reviewed.”