Joseph Feibel – January 8, 2018
Question:
What is a show cause notice?
Answer:
A show case notice is used when the contractor has failed to deliver the required supplies or to perform services on time, and the government must determine whether the delay was excusable or not. The show cause notice is not required when terminating commercial item contracts. If the contractor fails to deliver the supplies or perform the services within the amount of time specified in the contract or any extension of that time, the CO should send a show cause notice asking the contractor to show why the contract should not be terminated for default. The contractor’s response to the notice is used by the CO to evaluate whether the circumstances justify default termination.
At a minimum, a show cause notice must:
- Inform the contractor of its liabilities in the event of default termination
- Request the contractor show cause in writing why the contract should not be terminated for default
- Inform the contractor failure to explain the cause of the deficiency may be taken as admission that no valid explanation or excuse exists.