Author: Cheryl Adams, Esq. Let’s face it. It is a sad day for the contractor when the government must terminate for convenience an otherwise smoothly performing federal contract. A termination for convenience settlement payment is designed to make the terminated contractor whole. In the usual situation, a contractor should ask… Read more »
The Default clause in government contracting states if a court finds the government’s actions are improper, a termination for default is converted to termination for convenience. If the government and the contractor cannot reach a settlement agreements, the contracting officer will issue a decision determining the settlement based on “the… Read more »
After the government exercises its rights to terminate your contract under the termination for convenience clause, you then have to submit your damages in a termination for convenience settlement proposal. It must be done within one year. Therefore, you must develop your settlement posture early. The government will almost always… Read more »
The Termination for Convenience Clause in a federal government contract gives the agency the unilateral right to give you an early termination notice if it is in the government’s “best interest.” Sometimes there are questions as to the government underlying reasons. Regardless of fault, the termination for convenience clause requires the government… Read more »
Many government contractors struggle to understand their rights when the agency imposes a notice of termination for convenience or termination for default under the FAR. There are a myriad of situations that could amplify a contractor’s rights or, conversely, minimize them. Introduction The FAR termination for convenience clause is a crucial aspect… Read more »
When it comes to terminations for convenience in federal government contracting, the staggering statistics of cases filed at the Court of Federal Claims (COFC) should make contractors aware that the government does in fact deny claims in your final settlement proposal. Termination for convenience settlement costs become huge disputes primarily… Read more »
Before you submit your termination for convenience settlement proposal to the federal government, make sure you understand the regulatory allowances for costs recoverable. Given the push from the administration, government contracting agencies are instituting termination for convenience actions to do away with unwanted contracts. Although there are statutory damages and… Read more »
As a general rule, the contracting officer can terminate a federal contract for convenience of the government. Termination for convenience of the government usually occurs when mission requirements change, lack of funding as other ‘legitimate’ reasons. Contractors usually are entitled to some form of statutory damages. However, there are situations when terminating the contract can be… Read more »
There are subtle differences between the government contract termination for convenience vs termination for default clause in federal government contracts decisions. Contractors who incorrectly respond to termination by default or cause quickly find the painful and subtle differences, especially at the appeals stage. The same is true when the… Read more »
When the government issues a termination of contract for default for default, preserving your rights to appeal is one of the first things that a federal contractor must consider. What are your options? If you want to termination of contract decision to be completely overturned, you may want to ask… Read more »