A-Transport, a trucking company, held a government contract to transport goods from a Seattle warehouse. When the government relocated the warehouse, it resolicited bids under a change-of-supply-point clause in the original contract. A-Transport sued, claiming breach. The court ruled the government acted within its contractual rights and did not breach in bad faith. This matters because it shows courts will enforce broad change clauses that give the government flexibility to modify work locations.
Change-of-supply-point and change-of-location clauses in government contracts are enforceable and give the government wide latitude to modify where work is performed without breaching the agreement.
Simply resoliciting work after a location change is not bad faith if the contract language permits it—you must prove the government acted dishonestly or with improper motive, not just that you lost the job.