Can my contract be cancelled for lack of sales?

Yes it can. Please see the follwing excerpt from the actual solicitation. C.41 CONTRACT SALES CRITERIA (I-FSS-639) (MAR 2002) (a) A contract will not be awarded unless anticipated sales are expected to exceed at least $25,000 within the first 24 months following contract award, and are expected to exceed $25,000 in sales each 12-month period thereafter. (b) The government may cancel the contract in accordance with clause 552.238-73, Cancellation, unless reported sales are at the levels specified in paragraph (a) above.