Attorneys Helping Federal Contractors in All States to Maximize Contract Termination for Convenience Damages.
Although the federal government has a unilateral right to issue a termination of contract notice for convenience (T4C), sometimes the agency’s rationale for canceling the contract could be unlawful.
When companies receive a cancellation notice, they should also ask themselves whether there is actually a breach of contract or whether there is a potential unlawful agency action. You have 90 days from the date of the CO’s denial to file an appeal to the Agency Board.
With law offices in Washington, D.C. and Colorado, the government contract lawyers at Watson & Associates, LLC help small and large businesses to diligently identify statutory entitlements and to maximize their claims under the contract termination for convenience clause. See FAR 52.249-2.
Utilizing our 30 years of experience of actually working for federal contracting agencies, and litigating disputes under the Contract Termination for Convenience Clause, we are in a unique position to help clients to maximize settlement proposal claims.
Our contract termination attorneys also help clients to make sure that they mitigate damages by following the requirements of the contracting officer’s cancellation letter. Failure to mitigate damages can be a costly mistake if litigation arises. We also help government contractors to prepare sound termination settlement proposal agreements, provide statutory interpretation of the contract Termination Clause, and offer aggressive litigation and appeals of agency T4C decisions.
Clients: Our attorneys and contract claims consultants work with small businesses and large DOD contractors across the country from various industry groups including construction, Information Technology (IT), Aerospace and defense, professional services, manufacturers, medical services, engineering, and other service contractors.
What are Your Obligations Under the Contract Termination for Convenience Clause FAR 52.249-2 ?
An important element of making sure that you maximize settlement claims when the government terminates your contract is to immediately comply with the rules: You must comply with the following when the government issues you a contract termination letter. There are many steps you must also take under the FAR 52.249-2. A few include:
- Stop work immediately on the terminated portion of the contract and stop placing subcontracts thereunder;
- Terminate all subcontracts related to the terminated portion of the prime contract;
- Immediately advise the TCO of any particular circumstances precluding the stoppage of work;
- Perform the continued portion of the contract and submit promptly any request for an equitable adjustment of price for the extended portion, supported by evidence of any increase in the cost, if the termination is partial.
Are You Entitled to Termination Costs in Your Settlement Proposal? When the government terminates your contract for convenience, you have one year to submit your settlement proposal. However, many court cases show that contractors still have a hard time understanding whether or not they should include certain claims in their settlement proposal. Each case deserves its own analysis. Below are a few common problems.
First Article Testing. A contractor’s entitlement to termination costs as set forth in FAR 52.213-4(f) is “subject to the terms of the contract.” For example, under FAR 52.209-3, First Article Approval – Contractor Testing, you have to carefully look at the language of the contract.
Delay Damages. Under the Termination for Convenience Clause, you can only recover on a claim for delay damages as part of your termination settlement proposal if you have evidence that such costs resulted from the termination. However, a court may still look to see if you are entitled to such costs under some other contract provision.
Additional ContractTermination for Convenience Information
- Termination settlement damages,
- Difference between termination for convenience and termination for default,
- Contract notice of termination – a CEO’s biggest fear.
- Find out When is Termination for Default Converted to Termination for Convenience
Call Our Government Contract Termination for Convenience Clause Lawyers for Help
If you are trying to maximize your T4C claims under FAR Part 52.249-2, contract Termination for Convenience Clause or you do not quite understand your obligation language, call our government contracts law attorneys at 1-866-601-5518 for a FREE Initial Consultation.