A recent decision from the Armed Services Board of Contract Appeals (“ASBCA”) provides an important reminder to federal contractors — responsibility for ensuring the availability of required products generally rests with the contractor. In Vision Distributors LLC, ASBCA No. 64357 (July 17, 2026), the Board upheld the termination for cause of a contract after the contractor was unable to obtain equipment from its manufacturer. The decision is significant because the contractor argued that its failure to perform resulted from circumstances outside its control: the manufacturer’s refusal to allow the contractor to purchase and resell the required equipment.

The central lesson of the decision is the Board's conclusion that Vision Distributors had assumed the risk of being unable to obtain the required equipment. Before bidding, Vision Distributors had confirmed pricing with an authorized distributor, but it had not obtained a firm, enforceable commitment to supply the equipment. The Board reminded the contractor that it possessed the responsibility to investigate sources of supply and delivery terms before submitting a bid and that a reasonably prudent contractor should obtain assurances that the materials necessary for performance will be available. The fact that the manufacturer ultimately refused to supply the equipment did not transform the contractor's supply problem into an excusable default. Prime contractors generally cannot shift their performance risk to the government simply because its supplier fails to deliver.

Vision Distributors is a cautionary decision for federal contractors. A contractor that promises to deliver a product assumes significant responsibility for ensuring that the product will be available. Thepractical message is straightforward: supply-chain due diligence is not simply good business practice; it can be essential to avoiding a termination for default. The decision offers several practical lessons:

1. Confirm your supply chain before submitting a bid.
2. Obtain firm commitments whenever possible.
3. Do not assume a supplier's failure will excuse your performance.
4. Always have a Plan B.