What happens if the Contractor cannot achieve System Acceptance within one Sprint after testing?

If the Contractor cannot achieve System Acceptance within one Sprint after testing, the correct outcome is that the Contractor will be considered in default. This situation typically reflects an inability to meet specified performance criteria or project milestones as outlined in the agreement.

Being in default signifies that the Contractor has not fulfilled their contractual obligations, which can have serious implications for the project. The contract's terms usually stipulate what constitutes a default and the subsequent consequences, which may include termination of the contract or the invocation of remedies by the contracting authority. This provision is in place to ensure accountability and maintain project timelines and standards, highlighting the importance of performance in contractual relationships.

In contrast, extending the contract or providing additional support would suggest a leniency that does not align with standard practices in cases of default. Similarly, penalties would typically arise from a contractual default but are a separate and specific action that may follow the determination of being in default.