US Wins Challenge to Yellowstone Contract Termination Ruling

A contract appeals board must reconsider its conclusion that the Federal Highway Administration improperly terminated for default Eagle Peak Rock & Paving Inc.'s $35 million contract for construction work in Yellowstone National Park, a divided Federal Circuit ruled Tuesday.

The agency decided in 2017 that a default termination was necessary because of the contractor’s lack of progress. The Civilian Board of Contract Appeals ruled in 2020 that the default termination should be converted into a termination for convenience—under which Eagle Peak could be compensated—because the agency’s contracting officer’s decision relied on flawed reasoning. The government appealed.

The board committed legal ...