The Government’s contractual right to terminate a contract, in whole or in part, because a contractor has failed to perform its contractual obligations or has demonstrated that it is unlikely to do so. Common grounds for termination include failure to deliver on time, failure to make sufficient progress, or failure to comply with other material contract requirements. A Termination for Default is a serious contractual remedy that may expose the contractor to liability for excess reprocurement costs, negative past performance evaluations, and potential suspension or debarment. Contractors should understand the conditions that may lead to a default termination and take prompt corrective action when performance issues arise to minimise contractual and commercial risk.
Termination for Default (T4D)
The government's right to end a contract because the contractor failed to perform, potentially exposing it to reprocurement costs and debarment.
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Related Glossary Terms
The official compilation of permanent U.S. federal laws, providing the statutory basis for many contracting requirements.
A global classification system used to categorize products and services for procurement and spend analysis.
A unique 12-character identifier assigned via SAM.gov to organizations doing business with the federal government, replacing the DUNS number.
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