Easy Corp Case
Easy Corp was awarded a five year contract to provide program office support to a government agency. In the first year of the contract, the enterprise has raised concern with the contracting officer’s representative (COR). Easy Corp has habitually submitted erroneous and often late invoices, as well as late and incomplete management reports. Moreover, both the COR and Easy Corp employees rarely see the program manager for the contract. The purpose of this paper is to identify the ramifications for both the government and contractor from such negligence, as well as make recommendations concerning Easy Corp to the contracting officer.
Government agencies review and certify invoices to ensure adequate information exists to support payment …show more content…
If the invoice does not comply with the requirements, the designated billing office may return it within seven days of receipt (FAR 32.905). For the contractor, this could be problematic as the invoice will not be paid. If the contractor is a small business and invoices are rejected continuously, cash flow could be halted. In turn, the Government could be left without services or the product that the contractor was providing; this would be detrimental to productivity and costly. Additionally, employees of such a quandary could go …show more content…
Including this clause permits the Government to terminate all or a part of a contract for its convenience, or for default, which signifies the Government did not think the contractor was performing adequately (BizFilings, 2012). Easy corp incomplete management reports, and invoicing problems, could constitute failure of performance to provisions of the contract.
Prior to terminating a contract for default, the Contracting Officer will typically provide a written notice, known as a “cure notice” (BizFilings, 2012). The notice allows the contractor ten days to rectify any defects (BizFilings, 2012). If the failure of performance is then not cured within ten days, the Contracting Officer may issue a notice of termination for default (BizFilings, 2012). Termination of a contract such as Easy corp would not only be damaging to the organization, but it would leave its employees
Government agencies review and certify invoices to ensure adequate information exists to support payment …show more content…
If the invoice does not comply with the requirements, the designated billing office may return it within seven days of receipt (FAR 32.905). For the contractor, this could be problematic as the invoice will not be paid. If the contractor is a small business and invoices are rejected continuously, cash flow could be halted. In turn, the Government could be left without services or the product that the contractor was providing; this would be detrimental to productivity and costly. Additionally, employees of such a quandary could go …show more content…
Including this clause permits the Government to terminate all or a part of a contract for its convenience, or for default, which signifies the Government did not think the contractor was performing adequately (BizFilings, 2012). Easy corp incomplete management reports, and invoicing problems, could constitute failure of performance to provisions of the contract.
Prior to terminating a contract for default, the Contracting Officer will typically provide a written notice, known as a “cure notice” (BizFilings, 2012). The notice allows the contractor ten days to rectify any defects (BizFilings, 2012). If the failure of performance is then not cured within ten days, the Contracting Officer may issue a notice of termination for default (BizFilings, 2012). Termination of a contract such as Easy corp would not only be damaging to the organization, but it would leave its employees