[OldDeckHand]

""What do you do? What are the ramifications of letting that contract if it turns out that she had no authority to issue that order? If you do let the contract, is the contract itself enforceable by FlyByNight?"

Think of it this way, the Pentagon doesn't restart it's ongoing procurement negotiations, or nullify any existing contracts every time there's either a new SOD or POTUS, do they?

[El Gato]

Think of it this way, the Pentagon doesn't restart it's ongoing procurement negotiations, or nullify any existing contracts every time there's either a new SOD or POTUS, do they?

Actually they frequently do restart negotiations, even with lessor changes than POTUS or SecDef, or cancel on going projects. They of course do not just nullify existing contracts, but they do abrogate contracts under general legal terms. "Convenience of the Government" being one such. Generally the contractor is reimbursed for money spent under the contract up until cancellation, but gets nothing for it's investment otherwise or its loss of future revenues.