Jenner & Block successfully defended its client Jet Logistics Inc. against a termination for default issued by the United States Transportation Command (USTRANSCOM), preserving the company's Air Ambulance Blanket Purchase Agreement and its ability to continue providing critical transportation services to severely ill and injured servicemembers.
USTRANSCOM issued the termination for default based on alleged staffing deficiencies on Jet Logistics' air ambulance flights. USTRANSCOM also issued a demand letter seeking certain reimbursements. Because a termination for default must be disclosed on the System for Award Management, they make receiving new awards difficult. The action posed an existential threat to Jet Logistics' business.
The Jenner team prepared a comprehensive opposition demonstrating that (a) the company performed effectively and in full compliance with the contract, (b) that USTRANSCOM applied evaluation criteria absent from the face of the contract, and (c) the supporting record reflected a misunderstanding of the contract's requirements. The team also filed a Contract Disputes Act claim for outstanding Prompt Payment Act interest and to overturn the termination for default.
USTRANSCOM rescinded the termination for default, reinstated Jet Logistics' Air Ambulance Blanket Purchase Agreement, rescinded its demand letter, and agreed to pay the company's claim.
The team was led by Partner David Robbins, with valuable support from Partner Sati Harutyunyan and Associate Jennifer Eve Retener.