Helping Contractors in All States to Maximize Contract Termination for Convenience Damages. 1.866.601.5518.

FAR 49 Contract Termination For Convenience ClauseAlthough 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. In federal government contracting, the Termination for Convenience Clause is an important provision that contractors must pay attention to. The Clause allows the Government to terminate in part or the entire contract at any time and for any valid reason.

When companies receive a termination of contract 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.  We help with:

  • T4C settlement proposals
  • Assessment of claims and damages
  • Settlement claim preparation
  • Contract negotiations
  • Litigation and appeals

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. 

Maximize Termination for Convenience Clause Damages (Nationwide Help)

Our federal 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 for convenience settlement proposal agreements, provide statutory interpretation of the contract Termination Clause, and offer aggressive litigation and appeals of agency T4C decisions.

Under the Termination for Convenience regulations, contractor fault is not required. The termination of contract provisions allows the contracting officer to terminate the process when it is in the government’s interest. For example, mission changes or lack of financing can be valid reasons to terminate your contract for convenience.

Watson & Associates’ T4C attorneys guide clients into writing viable termination for convenience settlement proposals and to minimize adverse impact due to failure to mitigate your damages. Call Toll Free 1(866) 601-5518 – FREE INITIAL CONSULTATION.

Termination for Convenience T4C Settlement Proposal Preparation

Settlement Proposal Basics: To stand a chance of maximizing T4C claims, it is important to know what you can claim, and how to adequately prepare your settlement proposal. At Watson, our attorneys and consultants help you to prepare your SF 1436 or SF 1432 when submitting a settlement proposal. When clients seek partial payment after a termination for convenience decision, we help to avoid the costly mistakes seen to date.

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.

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.

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 Termination of Contract for Convenience Information

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 of contract 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.