44 Pub. Cont. L.J. 799 (2014-2015)
Stopping the Limitation of Funds Clause's Negative Effects on Contractors following a Government Shutdown

handle is hein.journals/pubclj44 and id is 825 raw text is: 






STOPPING THE LIMITATION OF FUNDS CLAUSE'S
NEGATIVE EFFECTS ON CONTRACTORS FOLLOWING
A GOVERNMENT SHUTDOWN

Chautney  McMillian

  I. Government Shutdown Means Contractor Shutdown.....        ...... 800
  II. Government Shutdowns and the Limitation of Funds Clause.......  802
    A. Government  Shutdowns: Why They  Occur and Effects on
       Contractors        ........................................  802
    B. The  Limitation of Funds Clause........................        803
III. Current Interpretation of the LOF Clause  ..............  .....  806
    A. Strict Interpretation of the LOF Clause............    ...... 806
    B. Problems with Current Interpretation of the Clause in the
       Government  Shutdown Context        ........................  807
       1. Losing Sight of the Original Purpose of the Clause ..........  807
       2. Ignoring the Reason to Believe Language ......   .......  808
       3. Failing to Recognize the Government's Obligation to
          Respond         ........................................ 809
       4. Overlooking the Government's Obligation to Pay Up to
          the Price Ceiling                ................................. 811
    C. Unavailability of Typical LOF Clause Defenses......................  811
       1. Unforeseeability Defense            ........................... 812
       2. Equitable Estoppel Defense           ......................... 813
IV. How  the Clause Should Be Interpreted   .........................  814
    A. In Adherence to Its Original Purposes ..............  ......  814
    B. In Compliance with Its Plain Meaning.............      ......  815
       1. Taking into Account the Reason to Believe Language...   815
       2. Recognize the Government's Response Obligations...........  815
       3. Recognize the Government's Obligation to Pay Up to
          Price Ceiling                   .................................... 816
    C. Courts Should Apply the Defenses of Unforeseeability and
       Equitable Estoppel     ............................ ......  817
 V. Conclusion        ..............................................  818


799


  Chautney McMillian (cmcmillian@law.gwu.edu) received her J.D. from The George
Washington University Law School in 2015. She would like to thank her family and close
friends for their support throughout the note writing process.

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