Understanding Federal Cost Reimbursement Contract Rules

Federal government contract vehicles come in various forms. One of the most complex types is the cost-reimbursement contract. This kind of arrangement is somewhat different than the standard firm-fixed-price contract where bidders offer a flat price for their product of service. A cost reimbursement contract, on the other hand, occurs when… Read more »

When is Termination for Default Converted to Termination for Convenience?

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 »

Responding to Government Default Contract Termination Letter

When your contract is terminated for default, the agency must issue a contract default letter. (see 49.601). Responding to the contract termination letter and taking the next steps could be problematic if you do not understand the process. Failure to give written notice could create substantive right violations and potentially due… Read more »

Construction Contract Claims Appeal for Government Contracts

Oftentimes, a  government contracts construction claims appeal is dismissed on appeal for lack of jurisdiction by the court. This can cost you a substantial amount of litigation fees only to find out that your case is dismissed on a technicality. To avoid such a peril, your must understand the basics when it… Read more »

Termination of Contract

Drafting a contract termination letter starts with the basis for the termination and making sure that the underlying reason for the letter does not breach the contract. The decision to terminate a contract can arise from several situations that include: employment terminations, breach of contract situations, terminating services, construction performance… Read more »

FAR Termination for Convenience Clause | How Does it Work?

Many government contractors struggle in understanding 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. The FAR Termination for Convenience Clause gives the government a unilateral right to issue… Read more »

Termination for Convenience Settlement Costs — Dangers You Face

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 because… Read more »