What is the process called when the Government exercises its right to terminate a contract due to the contractor's failure to perform?

The process referred to when the Government exercises its right to terminate a contract due to the contractor's failure to perform is called Termination for Default. This action arises when the contractor does not fulfill their obligations as stipulated in the contract, indicating a failure to meet performance standards or timelines.

In this scenario, the Government is entitled to terminate the contract and potentially seek damages or hold the contractor responsible for any losses incurred as a result of the non-performance. This provision protects the Government's interests by ensuring that contractors are held accountable for their commitments, and it also allows for the reallocation of the project to another contractor who can fulfill the requirements satisfactorily.

The other options, such as Termination for Convenience, Termination for Cause, and Termination by Mutual Agreement, relate to different circumstances under which a contract might end. Termination for Convenience allows the Government to terminate a contract without cause, whereas Termination for Cause refers to a circumstance often related to a legal breach outside of performance issues. Termination by Mutual Agreement occurs when both parties agree to end the contract voluntarily, typically involving negotiation and agreement on terms. In contrast, Termination for Default specifically addresses failure to perform, making it the appropriate term in this context.