Could a descope or partial termination could bring about a claim?
Would there be an fallout for not exercising the option and recompeting the entire contract as is or with revised requirements?
What is the contract type? If it is FFP, you may do a termination for default, only if the contractor has failed to deliver and/or perform and there is adequate money/time remaining on the contract (see FAR part 49). If the contractor is willing to agree to a no-cost termination, that maybe another alternative. However, if the contractor does not agree that he/she is in default and does agree to a no-cost termination, she may file a claim. Remember, usually termination is a "last resort". As far as options are concerned, it is the Government's unilateral right to exercise, or not.
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