The Defense Supply Center Columbus (DSSC) issued a purchase order for 14 vehicle gears and a second one for 16 additional gears to Comptech. Though DSSC extended the delivery dates by 60 days and when it discovered certain bore holes were out of tolerance Comptech asked for a waiver but DSSC denied it stating that parts out of tolerance were unacceptable so it cancelled the POs and the contractor officer sent a letter representing its final decision. In its appeal, Comptech asserted DSSC improperly cancelled its POs stating the cancellations should have been converted into terminations for convenience where it was entitled to certain costs. The Board disagreed finding the two POs were not signed by any Comptech representative and did not contain any other indication of acceptance.  The POs comprised only an “offer” to buy certain supplies on specified terms and conditions and the offer was accepted by the act of timely delivering the requested goods. The Board explained that Comptech’s initiation of performance was substantial enough to create “option contracts” binding the agency to keep its offers open until the dates set forth in those offers but Comptech’s actions “did not convert the POs into binding contracts for the sale and purchase of gears.” The Board added the offers lapsed by their own terms because of Comptech’s failure to tender complete performance and hence there was no contract that could have been terminated (Comptech Corp. ASBCA No 55526).

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