Please label the questions as they are being answered in the paper.
The Department of Health and Human Services (DHHS) has awarded a public contract to Be Good Contractors, Inc. to build a test facility for developing new smallpox vaccines. The project was initiated in response to a perceived biological warfare threat from a rogue terrorist group. The cost of the building was over $5 million dollars. Three months into the construction, the CIA determined they had overestimated the threat level and there was no real need to pursue development of the smallpox vaccines. The government never notified the builder and then approximately 6 months later, the DHHS notified Be Good Contractors that the project was being canceled and they should vacate the job.
Be Good sued, stating they had $3 million dollars of work yet to be completed on the contract and they should be compensated for their future losses. The government disagreed with the demand.
QUESTION 1:
State the best defense(s) the government has to avoid paying Be Good’s requested relief. Please present a solid legal analysis to support your conclusion.
QUESTION 2:
If the DHHS also informs Be Good it will not be paid for work it has successfully completed, will the DHHS prevail with this position?
Do you feel that this is an acceptable position for the government to maintain? Is this fair and honorable…. did the builder accept the risk that this could happen?  Please, explain your answer, using a sound legal analysis to reach a correct conclusion.