termination liability estimates

The non-recoverable costs a contractor has reasonably incurred in providing facilities and equipment for which the contractor has no foreseeable reuse if the Government terminates all or a part of a contract. Program managers planning a contract for the development or production of a Major Defense Acquisition Program (MDAP) for which potential termination liability could reasonably be expected to exceed $100 million must include an estimate of potential termination liability in the Acquisition Strategy.