Contractor Can Recover Only Costs for Test Items Produced Prior to Termination; ASBCA No. 60979, Appeal of Globe Trailer Manufacturing Inc.

Appeal of a claim for termination costs is denied in part where the (1) contract was terminated after the contractor delivered “first article” test units, and (2) the contract contained a “First Article Approval” clause that limited the contractor’s recovery to the cost of those test units in the event the contract was terminated before production began.