US Media Agency Contractor Gets Costs Following Content Cut Off

April 9, 2026, 7:07 PM UTC

The US Agency for Global Media owes Capital FM (Pvt.) Ltd $10,000 in employee severance costs following the the agency’s March 2025 decision to stop providing content to the company under a distribution agreement, the US Civilian Board of Contract Appeals said.

The Federal Acquisition Regulation provides that a contractor can recover severance costs if it can demonstrate a legal obligation to pay arising from a law or an employment contract, which is what Capital FM did, Board Judge Marian E. Sullivan said in a Wednesday opinion partially granting the appeal. The contractor challenged the agency’s deemed denial of cost ...

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