Can Contracting Office Cancel Contract?

SDV - Your post is a little unclear but being brave I will attempt to answer your questions. It appears the facts are this.

You have a prime contract awarded to you.

The CO is going to terminate the award (for either convenience or default) for failure to met the SOW of the work - the required certification.

The program office (or client in your words) has indicated to you that they would be willing to accept your work and continue the contract, even though it does not meet the required SOW - performed by employees without required certifications.

If these are the facts restated then have you considered that the program office was the one that crafted the SOW - certification requirement - in the first place?

Have you read FAR Part 2 with regard to who has authority to award, terminate contracts...see "Contracting Officer"?

Have you read the FAR regarding definition of "Termination for Default" in FAR Part 2 and additional details in FAR Part 49?

Bottomline why would you expect the government to allow performance that is not in conformance with the SOW of the work or even adjust the contract to allow for a lesser standard? Viewed another way how would you feel if you lost out on an award on a solicitation to a contractor who in the end was alllowed to complete the work without following the requirements of the work but you would have?

SDVOSB:

When you submitted your proposal, did you know that the certification was required?

Did you tell the agency that your employees have or would have the certification?

If not, did you tell the agency that your employees do not have the certification?

Did the agency know that your employees do not have the certification when it awarded the contract?