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Miller & Chevalier Files Amicus Brief on Interpretation of "Standard Record Keeping System" in Commercial Item Termination-for-Convenience Clause

Litigation Alert

Miller & Chevalier Chartered recently filed an amicus brief on behalf of The Coalition for Government Procurement (CGP), addressing an important issue for contractors who sell commercial products and commercial services (collectively, commercial items) to the government. The brief urged the U.S. Court of Appeals for the Federal Circuit to reverse the November 2, 2022 decision of the U.S. Court of Federal Claims (COFC) in ACLR, LLC v. United States, 162 Fed. Cl. 610 (2022). In its decision, COFC barred the contractor from recovering its "reasonable charges" resulting from a termination-for-convenience, based solely on an interpretation of FAR 52.212-4(l) under which COFC assessed the qualitative adequacy of the contractor's "standard record keeping system." As explained in the Miller & Chevalier amicus brief, COFC's interpretation is contrary to the plain language of FAR 52.212-4(l), as well as the regulatory scheme governing commercial item terminations-for-convenience implemented pursuant to the Federal Acquisition Streamlining Act (FASA). 

The case is ACLR, LLC v. United States, No. 23-1190 (Fed. Cir.). The amicus brief was authored by Jason Workmaster, Alex Sarria, and Elizabeth Cappiello.*

*Former Miller & Chevalier attorney 

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