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One Federal Clause Allows DOGE To Cancel Contracts at Will

The Federal Acquisition Regulation requires the right for the government to terminate any federal contract “for convenience.”

PresidentDonaldTrumpwonanonconsecutivesecondtermpromisingtocutgovernmentwastetothebone.HeformalizedtheDepartmentofGovernmentEfficiency(DOGE)asagovernmentalorganizationinanexecutiveorderonhisfirstdaybackinoffice. Sincethen,thedepartmentanditsnominalleader,ElonMusk,havepersistentlymadenewsforbigmovesagainstfederalspending.Forone,Muskroutinelyclaimshisdepartmenthasuncoveredhugesavings,onlyforsubsequentreportingtofindanyactualsavingsweremuchmoremodest. ButthegovernmentdoesseemtohavecanceledthousandsoffederalcontractsonDOGE’srecommendation,usingaprovisionoffederallawthatgivesthegovernmenttheabilitytocancelcommitmentslargelyatitspleasure. UndertheFederalAcquisitionRegulation(FAR),mostfederalagencycontractsmustincludea“terminationforconvenience”clause,whichitdefinesas“theexerciseoftheGovernment’srighttocompletelyorpartiallyterminateperfo