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Termination For Convenience

Effectively Resolve Termination For Convenience & Default Disputes

Government Procurement Lawyers Protecting Your Rights and Maximizing Damages. 

Call our legal experts at 1-866-601-5518 for a free initial consultation.

Termination for convenience in government contracting puts your business in a compromising situation. Preparing adequate settlement proposals and understanding your statutory rights are important issues that our lawyers federal procurement and government contracts lawcan help you with.  Your goal is now to recoup maximum damages, submit adequate and accurate paperwork to the government. In addition, we understand that a federal agency may not always comply with the law (whether intentionally or not) and you might not quite understand your rights. The law allows you to recoup certain categories of damages when the government terminates your contract for convenience. The first approach is always to see whether or not the termination is legally valid. This critical, and commonly-missed question, determines whether the agency will be required to pay for loss profits.

 

 We can help you with:

  • Assessment for breach of contract by the government
  • Preparation of partial or complete Termination for Convenience
  • Direct representation on your behalf with the government
  • Complete analysis of relevant and allowable recovery
  • Post-termination costs
  • Settlement proposal and expenses
  • Handling subcontracting claims
  • Mitigation of contract damages
  • Negotiations
  • Resolving matters pertaining to costs of performance incurred up until the time of contract termination
  • Costs for any reasonable efforts in preparation for future work
  • Proving legal requirements of liability, causation, and price adjustment
  • Developing and preparing settlement proposals
  • Appeals to the Armed Services Board of Contract Appeals (ASBCA)
  • GSA Schedules

 

Experience to protect your rights: The attorneys at Watson & Associates, LLC offer in-depth experience and expertise in government contract termination for convenience cases, including settlement proposals, termination damages assessment and breach of contract analysis.   We have successfully resolved agency mishandling of improper terminations and denial of claims. Our lawyers, having worked for federal agencies understand the mistakes  made by agencies and know how to deal with them. Government contract termination for convenience surprises federal contractors although the termination clause is deeply embedded into the initial contract. This area is a substantial diversion from commercial contracts, where the terminated you may have a claim for breach of contract. Given the compromising situation that you now face,  and sometimes shock of adjustment to lost revenues, successful recovery under federal procurement law is critical.

 

Call us to protect your rights and to maximize recovery of your damages. We offer a free initial consultation.  

 

Termination for Convenience Lawyers

More than likely, you are faced with this type of termination.  The key is for you to understand your statutory rights. This type of contract termination surfaces when the government decides to unilaterally terminate your contract for the “best interest of the government.” Government contractors generally have no say in the matter.  However, the law does allow for certain contractor damages when this happens.  Sometimes,  agency actions are not warranted or unlawful. As a result, your rights can be jeopardy. Unless, you have an experienced government contract termination lawyer on your side, you can rest assured that the agency will not simply hand you damages without a challenge. This is where Watson & Associates can substantially benefit your organization.

 

Maximize damages:  In exchange for the privilege of terminating the contract for convenience, the government should make you “whole”; that is to reimburse the contractor for all reasonable and allowable damages. This includes:

  • Continuing termination costs (you must try to mitigate these costs – have proof). Examples of these termination costs include: cost for deactivating, reassigning, returning, and relocating employees; severance pay for terminated employees if required by law, labor agreements, or established company policy.
  • Inventory and preparing parts for transportation.
  • Costs for dismantling, restoring or relocating plant facilities.
  • Settlement expenses such as accounting, legal, clerical and similar costs reasonably necessary
  • Storage, transportation and protection of property
  • Subcontractor claims

Legal fees, accounting and similar costs can be achievable if you can show that they were incurred in attempt to negotiate a settlement of a termination proposal. All termination costs must be reasonable and as a direct result of the termination for convenience.

Note: If you are dissatisfied with what the termination contracting officer (TCO) allows and you appeal to the Board of Contract Appeals, the cost of that litigation cannot be recouped. See Appeal of Lieb Bros., Inc., A.S.B.C.A. No. 10007.

 

We Represent Businesses in All States

Watson & Associates can represent federal contract termination contractors in in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, U.S. Virgin Islands, Utah, Vermont, Virginia, Washington, Washington, DC, West Virginia, Wisconsin, and Wyoming.

 

What Can You Do to Minimize Loss?

Safe  approach to termination for convenience cases: Federal contractors that are subject to a termination action can rest assure that our government contract lawyers realize that the agency is not immune to unlawful mistakes. We first assess your case to see if the agency is liable for breach of contract.   If so, damages will not be limited by the termination clause and you may be entitled to recover greater damages as a result of the breach. We will then help you to prepare the claim paperwork and guide you in the submission phase. As part of our analysis, our firm also reviews case law that supports your position. Proactive approaches to minimize loss can include:

  • Always keep documentation to support your termination damages. This is often a problem that can be a significant factor when submitting a settlement proposal.
  • Never rely on what the government tells you after notice of contract termination. Contractors tend to rely on the government for help. This can be a fatal mistake simply because there is potentially a conflict of interest problem, or the person giving you advice may often be the COTR/COR. For example, in a construction termination for convenience case, the COTR generally cannot bind the federal government. You may now be faced with a situation where the contracting officer’s decision is contrary. Never attempt to handle a termination for convenience settlement on your own. Click here to see an article on the Termination for Convenience clause.
  • Get the help needed to maximize recovery. When the government terminates a contract for convenience, the law allows for certain damages. However, a contracting officer may unlawfully terminate for convenience when in fact there could be a breach of contract case in your favor. This is when our legal counsel can be extremely beneficial.

 

Contractor Tips

Termination for Convenience is inappropriate when the government does not order the guaranteed minimum amount under an Indefinite Delivery Indefinite Quantity (IDIQ) contracts. This can be very harmful in construction projects. However, there is no breach of contract if the government cancels the unordered portion during performance. If the government waits until after the performance period to terminate for convenience, contact a government contracts attorney at our office for immediate help.

  • Never guess on your damages. Contractors sometimes find themselves in a situation where they are depending upon the contracting officer to tell them what to do and what damages they cannot get. Others may try to read the FAR and self-interpret the rules. This can be a costly mistake because you may overlook important rights. Our contract termination lawyers can help you to avoid such pitfalls.
  • Never assume that a termination clause flows down to subcontractors. This is one of the most common disputes between prime contractors and subcontractors. The Christian Doctrine does not apply to subcontractors. Therefore, without having the expert advice of a government contract law firm to advise you, your company may be stuck with payment to a subcontractor for lost profits.
  • Requirements contracts. The Government’s failure to order all of its needs under a requirements contract is a breach of contract if the agency terminates the contract for convenience. If the agency fails to do this, then you might be entitled to recovery anticipatory profits.
  • Bad faith is difficult to prove. A Termination for Convenience is a breach if it is made in bad faith or is an abuse of discretion. To prove bad faith, courts require you to show the government’s intent to harm the contractor and to provide proof by clear and convincing evidence. If you believe that you are subject to bad faith case, call one of our attorneys for immediate help at 1-866-601-5518.

 

Include Appropriate Clauses in Subcontracts

As government contract attorneys, we often advise our clients (especially in construction contracts) that they cannot automatically apply the government’s Termination for Convenience clause into subcontracts. There must be an appropriate expressed clause in the subcontract that discusses Termination for Convenience. Failure to include such a clause could subject prime contractors to lost-profit claims from subcontractors. Contact Watson & Associates for help on this topic.

You must understand the Christian Doctrine. When you sign a government contract, a Termination for Convenience clause is read into every contract, even if the agency fails to include it. You cannot avoid a Termination for Convenience simply because the agency failed to incorporate it. See G.L. Christian & Associates vs. United States. 

 

Termination for Default Rights

Protect your rights and business reputation.

Termination for Default:  Besides a criminal conviction or debarment or suspension, termination for default is one of the most severe agency sanctions to be imposed upon a government contractor. In this situation, you want to ensure that you have adequate legal representation from experienced government contract attorneys.  Watson & Associates represent large corporations and small businesses that are faced with what is commonly referred to as “the kiss of death in government contracting.”

  • Get help with the acceptable defenses to termination for default actions
  • Get assistance in negotiating a termination for default into a termination for convenience
  • Avoid and defend  possible suspension and debarment

 

Tip: If the government’s failure to cooperate created the problems that prevented timely performance, a termination for default is improper. See CJP Contractors, Inc. v. U.S., 45 Fed. Cl. 343 (1999).

If you are in a situation that can possibly cause a termination for default, contact our contract termination defense lawyers. We can possibly protect your rights and avoid this catastrophe.

 

Representation with Termination for Default Contracts

 If you are exposed to this adverse action, you have rights under federal procurement law.  The agency has substantial power to terminate contracts. However, you can rest assured that not all actions are lawful. This termination  clause permits the government to terminate the contract if you fail to perform on time, fail to perform with diligence to ensure timely completion, or fail to perform work in accordance with the requirements of the contract. The government has the right to complete the work and charge the contractor for the excess costs incurred following a termination for default. Both the contractor and its surety would then be liable for these costs.

 

Get Help with Other Allowable Costs

When you hire our government contract-termination lawyers, we also fight for other additional costs that are commonly missed by businesses attempting to settle with the federal agency. For example, the costs associated with the preparation of the settlement proposal are recoverable expenses, to include accounting, legal, clerical, and other expenses reasonably necessary for the preparation of the Termination Settlement Proposal and supporting data.

 

Other Government Contract Services

In addition to handling your termination-contract litigation and negotiations, Watson & Associates’ attorneys also provide a wide array of federal procurement support, including:

 

Nationwide & Overseas Assistance

Federal law allows our government contract lawyers to represent construction and service contract clients that need Termination for Convenience assistance regardless of their resident state. Watson & Associates can represent businesses in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, U.S. Virgin Islands, Utah, Vermont, Virginia, Washington, Washington, DC, West Virginia, Wisconsin, and Wyoming.

Cities in which we practice include Anchorage, AK; Atlanta, GA; Austin, TX; Chicago, IL; Colorado Springs, CO; Dallas, TX; Denver, CO; Indianapolis, IN; Las Vegas, NV; Los Angeles, CA; Miami, FL; Philadelphia, PA; San Antonio, TX; San Diego, CA; San Francisco, CA; San Jose, CA; Santa Clara, CA; and Tampa, FL.

 

Contact us for Immediate Help

If you are a prime contractor, subcontractor, or construction surety facing a termination for default or Termination for Convenience, contact our attorneys online or call us toll free at (866)601.5518.