Termination for Convenience Clause Lawyers

Served with a Government Contract Termination for Convenience Notice Under FAR 52.249-2? We Can Help You. Here’s What You Need to Know

The FAR Termination for Convenience Clause in a Government contract gives almost broad rights to the contracting officer to terminate your contract when it is in the Government’s best interest. The Government may cancel the contract simply because it needs to change regardless of the contractor’s fault. See FAR 52.249-2  The Convenience Termination Clause also allows to the government to pay the terminated contractor for incurred costs and certain continuing costs in a traditional Government contract.

On the other hand, if the termination of a contract is for commercial items or services under Federal Acquisition Regulation Part 12, the Government can pay your company the percentage of the contract price reflecting the percentage of completion and charges resulting from termination.

What Do I Need to Do After Receiving A Notice of FAR Termination for Convenience? 

 After receipt of a Notice of Termination, and except as directed by the Contracting Officer, the Contractor shall immediately proceed with the following obligations, regardless of any delay in determining or adjusting any amounts due under this clause:

(1) Stop work as specified in the notice.

(2) Place no further subcontracts or orders (referred to as subcontracts in this clause) for materials, services, or facilities, except as necessary to complete the continued portion of the contract.

(3) Terminate all subcontracts to the extent they relate to the work terminated.

(4) Assign to the Government, as directed by the Contracting Officer, all right, title, and interest of the Contractor under the subcontracts terminated, in which case the Government shall have the right to settle or to pay any termination settlement proposal arising out of those terminations.

(5) With approval or ratification to the extent required by the Contracting Officer, settle all outstanding liabilities and termination settlement proposals arising from the termination of subcontracts; the approval or ratification will be final for purposes of this clause.

See also  FAR 52.249-2 Termination for Convenience of the Government (Fixed-Price)

Who We Are and What We Do

Watson & Associates is a boutique-size federal government contract and business law firm. We have law offices in Washington, DC, and in Denver, Colorado.  Our government contract termination convenience clause lawyers provides detailed guidance and legal counsel to small businesses and large government contractors when the contracting officer terminates the contract for convenience (T4C) under FAR 52.212-4 and FAR 52.249-2. Our goal is to help our clients avoid the most costly mistakes when providing terms for convenient legal representation and developing settlement proposals.

  • Our legal team assesses the facts and makes sure that the  agency has not violated the law
  • Our T4C attorneys also help you analyze each case and guide you to maximize your damages.
  • We help you to avoid some of the most costly mistakes seen in government contract termination cases.

The lawyers at Watson & Associates bring more than 30 years of federal procurement experience and can help your company plan and assess your T for C recovery and aim to secure all statutory compensation. Our attorneys are seasoned government contract termination lawyers and understand the procurement process from termination settlement proposal submission to appeal the contracting officer’s decision to terminate for convenience.

T for C Government Contract Termination for Convenience Meaning?

Government contract termination for convenience clause is almost always found in government contracts. This provision allows the government to unilaterally terminate a contract in whole or in part when it’s in the government’s best interest. This is different than when the contractor breaches the contract and is terminated for default.  FAR 52.249 -2 develops a process for the termination of contract for convenience.

Our government contract attorneys help small businesses and larger DOD contractors to prepare termination for convenience settlement proposals, assess the compensation resulting from the termination and assess whether the contracting offer has also breached the contract, or acted in bad faith.

What Are Your Rights as a Contractor

As a contractor, you have rights even when your contract is terminated for convenience. It’s important to know what compensation or damages you’re entitled to. This includes fair compensation for completed work and expenses incurred before the termination. Being aware of these rights helps in securing what you are rightfully owed.

T 4 C Appeal Attorneys

FAR 52.249-2 (j) allows government contractors the right to appeal FAR termination for convenience decisions under the Disputes Clause from any determination made by the Contracting Officer under paragraph FAR 52.249-2(e), (g), or (l) of this clause, except that if the Contractor failed to submit the termination settlement proposal or request for equitable adjustment within the time provided in paragraph (e) or (l), respectively, and failed to request a time extension, there is no right of appeal.

Common Mistakes to Avoid Post-Termination for Convenience

Post-termination, it’s crucial to avoid common mistakes such as hastily signing a contractor release of claims and settlement agreements without legal review, overlooking entitled compensation or allowable costs, quickly signing a contractor release of claims without an attorney reviewing, or misinterpreting contract terms. Government contractors must also be mindful not to appeal a case without first making sure that the issue is presented to the contracting officer. 

T4C Contract Termination Attorneys

Government Contracts Attorney Denver COCheryl E. Adams is an Associate Attorney with Watson and Associates, LLC.  She is a former federal Contracting Officer with years of hands-on experience with all phases of federal procurement.  She brings to clients an intimate understanding of the Federal Acquisition Regulation (FAR) and T4C convenience termination clauses as an insider perspective on the procurement processes of a federal government headquarters. 

When giving termination for convenience legal representation, she understands the government’s relationships with small businesses and subcontractors, as well as relationships with Fortune 500 corporations.  She has worked side by side with government auditors, and personally conducted government property audits.  She has handled all sizes of contract award from micropurchases through major systems. Read more..

 

 

government contracts compliance lawyerMr. Scott Lovelock brings a wealth of proven knowledge and experience helping clients address issues of risk assessment, mitigation and regulatory compliance as well as a savvy level of business and military experience that gives him a unique perspective to help government contractors succeed and avoid most of the costly mistakes that are encountered when failing to understand and implement required compliance programs or understanding the nuances of working with government agencies. 

A retired Air Force officer, with extensive operational experience in both the field, Numbered Commands, Air Force Headquarters and the Joint Staff, he brings a unique and focused perspective of DoD operations in how he serves our clients.  In addition, he has been a Contractor Officer Representative, worked with major defense contractors on large weapon system acquisitions, and led multiple teams in support of the Planning, Programming, Budgeting, and Execution (PPBE) process within the Department of Defense (DoD). Read more…

Note to Contractors: Do Not Sign Release of Claims Unless You Speak to a T4C Government Contract Termination Lawyer.

Government Contract Termination for Convenience Settlement Proposals Deadlines ( Prime and Sub) (TSP)

A government contract termination settlement proposal in federal contracting allows for companies to submit a request for payment within one year of the effective date of the termination or notice of contract FAR termination for convenience (T4C – whenever the contractor received notice first). The reason for the T4C settlement proposal is to allow your company to recover costs and profits already incurred up until the contract was terminated. Our government contract termination for convenience and FAR lawyers and consultants can help your company develop and prepare your proposal once the contract is terminated.

Per FAR 52.249-2, After termination, the Contractor shall submit a final termination settlement proposal to the Contracting Officer in the form and with the certification prescribed by the Contracting Officer. The Contractor shall submit the proposal promptly, but no later than 1 year from the effective date of termination, unless extended in writing by the Contracting Officer upon written request of the Contractor within this 1-year period.

However, if the Contracting Officer determines that the facts justify it, a termination settlement proposal may be received and acted on after 1 year or any extension. If the Contractor fails to submit the proposal within the time allowed, the Contracting Officer may determine, on the basis of information available, the amount, if any, due the Contractor because of the termination and shall pay the amount determined.

Avoid Common Issues When Termination for Default Appeal Decisions are Converted to Termination

In the absence of a final contracting officer decision regarding FAR termination for convenience costs or other monetary damages related to the default termination, whether premised. on a contractor claim or on a government claim, you first have to give the contracting officer notice that you seek these costs.  See The Hanover Insurance Co., et al. v. United States, No. (May 27, 2014).  However, the Hanover ruling does not foreclose contractors from pursuing contract termination for convenience claims after termination for default has been converted. 

  • A termination for convenience settlement proposal is not a Contract Disputes Act claim until the parties reach an impasse.

Additional T4C Contract Termination Clause Information

Call Our Government Contract Termination for Convenience Clause Lawyers

Immediate Government contract termination for convenience legal representation: If you have received a contract termination notice, a final decision from the contracting officer, or are trying to maximize your T for C contract claims and settlement agreement under FAR 52.249-2, need help with contract damages, a government contract termination settlement proposal consulting or need help with litigation and appeals, call our FAR T4C government contracts law attorneys and FAR termination for convenience clause lawyers at 1-866-601-5518 for a FREE Initial Consultation.