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Termination for Cause, Termination of Contract Litigation and T4D Appeals
If the federal government issues your company a termination for default notice–T4D result (also referred to as termination for cause, without sound legal representation, you may end up owing the government thousands of dollars, if not millions.
Our team of government contract termination attorneys ensures that businesses can reduce liabilities while safeguarding their revenues from government contracts. The law firm uses over 30 years of combined experience to protect your federal projects and reputation while safeguarding your bottom line.
When litigating termination for default cases, our legal team includes seasoned professionals who consistently work within the courts and understand how to craft sound legal arguments regarding termination of contract disputes and Contract Disputes Act legal issues. We have earned a reputation for gaining favorable results for small businesses and large DOD contractors through vigorous legal representation.
- 30 years experience in procurement law.
- Prompt responses.
- Competitive legal rates
- Aggressive appeal representation.
When the contracting officer notifies you that your contract is terminated for default, how you handle the issue is critical to preserving your rights for any appeals litigation. 46% of termination for default cases are lost on appeal because the contractor did not preserve their contractual rights at the contracting officer level.
Government Termination for Default (T4) Legal Services
The law firm provides a detailed review of the facts leading up to the termination for default, assesses whether the contracting officer has violated government procurement law or has abused his or her discretion when canceling a contract with a contractor. We then prepare the written notice of termination appeal to the respective players. Our T4D lawyers provide:
- Assessment of cure notices and show cause decisions
- Legal analysis of government fault outside of the contractor’s responsibility
- Review of specific facts that create legal defenses for the contractor
- Detailed legal analysis and preparation of appeal documents
- A thorough assessment of the relevant facts
- Potential for negotiations in termination for cause cases.
- Aggressive appeals and litigation services.
- We handle construction termination for cause and service contract T4D cases.
- We provide help with converting default decisions into a termination for convenience.
To Speak in Conidence With a Contract Attorney, Call 1-866-601-5518 for a FREE Initial Consultation.
When the contracting officer issues you a written notice of termination that your contract is terminated for default, and that you have failed to meet your contractual obligation, how you handle the issue is critical to preserving your rights for any appeals litigation. Watson & Associates’ government contract law attorneys frequently help government contractors before and after the agency’s termination notification letter. Since the appeal courts are extremely strict about the facts occurring before the appeals phase, companies should make sure that their contractual rights are not jeopardized.
Damages can include re-procurement cost, delays, unliquidated progress payments and other legal remedies for your alleged failure to perform. The best plan of attack is to develop evidence to show an appeals court that the government wrongfully terminated the contract for cause, the government significantly contributed the underlying reason, or show some level of legal excuse.
- The termination for default litigation process can be daunting and exhaustive without sound legal advice
- Our goal is to develop the strength of your case early and focus on getting the T4D reversed or negotiated.
Termination of Contract Clause Under FAR 49.4 and FAR 52.249 8
When canceling a contract with a contractor, termination for default is generally the exercise of the Government’s contractual right to completely or partially terminate a contract because of the contractor’s actual or anticipated failure to perform its contractual obligations. This should be spelled out in the written notice of termination.
Under FAR 49.402-2, the Government is not liable for the contractor’s costs of undelivered work and is entitled to the repayment of advance and progress payments, if any, applicable to that work. The Government may elect, under the Termination for Default Clause, to require the contractor to transfer title and deliver to the Government completed supplies and manufacturing materials, as directed by the contracting officer.
Not all agency contract actions are lawful. Given the impact of a termination for default (T4D) under FAR 52.249 8 on a company’s future, courts look at a termination decision as a last resort for the government. Furthermore, the burden is on the government to provide evidence and to show the appeal court that its decision was justified. This is where Watson’s federal government contract law attorneys can help.
What Must the Government Show When using the Contract Termination Clause?
When the contracting officer issues a termination for cause, and alleges that you have failed to meet your contractual obligation under the Termination Clause, it must defend any appeal filed by the contractor. If the contract was terminated before the actual completion date, the agency must show that use of the Termination for Default Clause was proper and correct. Find out How Does a Decision to Debar Government Contractors Impact Your company.
- Courts see a default termination as a drastic sanction against the contractor.
- The government must show that its default decision was reasonable and supported by solid evidence.
Do you get additional time for differing site conditions on construction projects?
When canceling a contract with a contractor, if the contracting officer issues a T4D under the termination for default clause but fails to credit time for a valid differing site condition construction claim, there may be grounds to appeal the termination for default. See AGBCA No. 94-165-1, Harry and Keith Mertz Construction, Inc.
Can the government terminate your contract for failure to make progress under the Termination Clause?
If you can show that you still can be reasonably expected to finish the project on time, then the government may have a hard time defending its T4D action.
What must the contracting officer consider before issuing a contract termination for default action?
FAR (49.402-3(f)) shows a list of things that the contracting officer must consider before terminating a contract for default. They include:
- The terms of the contract and applicable laws and regulations – FAR 52.249 8.
- The specific failure of the contractor and the excuses for the failure.
- The availability of the supplies or services from other sources.
- The urgency of the need for the supplies or services and the period of time required to obtain them from other sources, as compared with the time delivery could be obtained from the delinquent contractor.
- The degree of essentiality of the contractor in the Government acquisition program and the effect of a termination for default upon the contractor’s capability as a supplier under other contracts.
- The effect of a termination for default on the ability of the contractor to liquidate guaranteed loans, progress payments, or advance payments.
- Any other pertinent facts and circumstances.
Our clients: Our customers include small businesses and large DOD contractors in various industry groups such as construction companies, IT services and more.
Watson’s government contract lawyers practice before the Civilian Board of Contract Appeals, Armed Services Board of Contract Appeals (ASBCA) or contract termination appeals to the U.S. Court of Federal Claims and US Court of Appeals for the Federal Circuit.
Appealing a contract termination for cause under FAR 52.249 8 requires you to act quickly. Meeting the filing deadline also means assessing all facts and documents before drafting and filing the appeal. Without a detailed and sound appeal, T4D cases tend to fall by the wayside and not get an adequate result. Companies should make sure that there is, in fact, a formal final decision.
Nationwide and Overseas Help
Watson’s termination of contract for default lawyers represents federal contractors in all states regarding litigation and trial matters. We intervene for federal small businesses and large DoD contractors 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 our Washington DC government contract termination for cause attorneys help federal contractors include Anchorage, AK; Atlanta, GA; Austin, TX; Chicago, IL; Colorado Springs, CO; Dallas, TX; Denver, Colorado; 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.
Call Watson Termination For Cause Dispute Lawyers
For help with a FAR termination for cause appeal, contact our federal government contracts T4D attorneys today. If Call for a FREE initial consultation – 1-866-601-5518.
Helpful T4D Resources for Federal Government Contractors
Call us for immediate help with your contract termination for default appeal case. 1-866-601-5518.