Which type of termination occurs when a contractor fails to deliver the agreed-upon services or supplies?

Termination for cause occurs when a contractor fails to meet the specific requirements of the contract, such as failing to deliver the agreed-upon services or supplies. This type of termination is initiated by the contracting officer when there is a breach of contract that justifies ending the relationship due to the contractor's noncompliance or inadequate performance. It is a serious measure, reflecting that the contractor has not fulfilled their obligations as stipulated in the agreement.

In this situation, the government can pursue remedial steps or recover losses that may have resulted from the contractor's failure. This method protects the government's interests and ensures compliance with contractual terms, allowing them to possibly re-solicit the contract to another vendor who can fulfill the requirements.

The other options do not apply to this scenario. Termination for convenience allows the government to end a contract for reasons unrelated to performance. Routine closeout pertains to the administrative process of closing out a completed contract and is not related to contractor performance issues. Early termination is generally a more ambiguous term that doesn’t specifically define the cause related to contractor failure like termination for cause does. Thus, the correct choice clearly indicates the contractor's inability to deliver as per contract terms.