Contractor Can Recover Costs for Long-Term Telecom Circuit Lease After Contract Cancellation; ASBCA No. 59233, Appeal of 2 Connect WLL

Appeal of the agency’s denial of a certified claim for contract termination costs is granted, where the appellant reasonably documented its determination to enter into a 15-year irrevocable lease for a telecommunications circuit prior to the cancellation of its contract and demonstrated that it had taken steps to mitigate the cost impact of the cancellation, and where the agency’s argument that the cancellation clause entitles the contractor to settlement costs only for actual property or facilities in the contractor’s possession is wholly unsupported.