Although the federal government has a unilateral right to issue a termination for convenience (T4C ), sometimes the agency’s rationale for canceling the contract could be unlawful. In addition, few government contractors are aware of the recoverable cost and damages when the government terminates for convenience.
- Know what you are entitled to versus what you may think is owed
- Get a detailed assessment of how to maximize your termination damages
- Understand that the CO cannot just use the T4C government contract termination clause for any reason
- Prepare termination settlement proposal in a way that preserves any rights you may have on appeal
- Develop termination settlement proposals to meet Contract Disputes Act requirements in the event that the government opts to not pay.
- Nationwide help for FAR 52.249 2 termination for convenience
You have 90 days from the date of the CO’s denial to file an appeal to the Agency Board.
We help federal contractors with termination for convenience costs regardless of location
With law offices in Washington, D.C. and Colorado, the FAR termination for convenience attorneys at Watson & Associates, LLC help small and large businesses to diligently identify statutory entitlements and to maximize their claims under the FAR 52.249 2 termination clause.
- 30 + years of government experience
- Get an assessment of whether the government actually breached the contract (most contractors miss this critical step.)
FAR Termination for Convenience Clause – Attorney Services
Utilizing our 30 years of experience of actually working for federal contracting agencies, and litigating disputes under FAR Termination for Convenience of the government, we are in a unique position to help clients to maximize settlement proposal claims. We help with:
- Settlement proposal preparation
- Legal advice when the contracting officer issues notice of t4c government contracts
- Assessment of termination for convenience damages
- Responding to notice of contract termination
- Termination settlement proposal consulting
- Termination of contract negotiations
- Liquidated damages and contract disputes
- Litigation and appeals for services and construction contracts
Clients: Our FAR attorneys and contract termination claims consultants work with small businesses and large DOD contractors across the country from variousindustry groups with termination for convenience costs including construction, Information Technology (IT), Aerospace and defense, professional services, manufacturers, medical services, engineering, and other service contractors.
FAR TERMINATION FOR CONVENIENCE CLAUSE DAMAGES AND COMPENSATION
As a general proposition, the contracting agency’s assessment of liquidated contract FAR 52.249-2 termination for convenience clause compensation is a government claim against a contractor, Sun Eagle Corp. v. United States, 23 Cl. Ct. 465, 480 (1991). The government’s claims for liquidated damages can be directly appealed to the Court of Federal Claims, Garrett v. Gen. Elec. Co., 987 F.2d 747, 749 (Fed. Cir. 1993).
TIPS FOR FEDERAL GOVERNMENT CONTRACTORS
- Do not wait more than a year to submit your settlement proposal after the contracting officer terminates the contract for convenience.
- A court will deny an appeal if the contract convenience termination claim shows that you did not perform any percentage of the contract work prior to the termination.
- You must at least have performed or deliver something to the government to get paid.
- Knowing what the government can and cannot do is everything when you are trying to get paid.
REASONS FOR TERMINATION FOR CONVENIENCE?
FAR 52.249-2 contract termination clause states that the agency can terminate the contract for convenience when it is in the “Government’s interest.” FAR 52.249 has no expressed definition of what is the government’s interest. Federal courts recognize certain instances where the agency has a valid interest. Reasons for termination for convenience (T4C) include:
- The government no longer needs the contracted supplies or services
- The contractor refuses to accept a contract modification under the provisions of the contract
- There are questions about the propriety of the award, or about the continued performance of the contract
- The contracted firm is not eligible for award (bid protest)
- Deteriorated business relationships between the contractors and the government
- The government restructures its arrangements to perform the work in-house.
- The contracted work seems to be too costly or impossible
- Lack of funds
- Mission changes
OTHER T4C GOVERNMENT CONTRACT REQUIREMENT FOR PRIME CONTRACTORS
Notify the Contracting Officer of all pending legal proceedings that are based on subcontracts or purchase orders under the contract, or in which a lien has been or may be placed against termination inventory to be reported to the Government. Promptly notify the Contracting Officer of any such proceedings that are filed after receipt of the Termination Notice.
T4C TERMINATION INVENTORY
The FAR 52.249 2 termination for convenience clause requires you to transfer title and deliver to the Government all termination inventory of the various types or classes, including subcontractor termination inventory that you have the right to take. Follow the contracting officer’s instructions or ask for them.
- To settle your proposal, it will be necessary to establish that all prime and subcontractor termination inventory has been properly accounted for. For detailed information, see Part 45.
- Note that you can only receive termination for convenience costs for the terminated portion of the contract
Additional T4C Government Contract Termination Clause Information
- Termination settlement damages,
- Difference between termination of contract for convenience and termination for default,
- Contract termination notice – a CEO’s biggest fear.
- Find out When is A Default Converted to Convenience Termination
- Avoid Unnecessary Audits of Your Settlement Proposal: How to Make the Most of the New $750,000 Audit Limit.
Call Our Government Contract Termination for Convenience Clause Lawyers
If you have received a notice of contract termination, a final decision from the contracting officer, or are trying to maximize your T4C government contract claims and settlement agreement under FAR 52.249-2, need help with contract termination for convenience damages, termination settlement proposal consulting or need help with litigation and appeals, call our FAR T4C government contracts law attorneys at 1-866-601-5518 for a FREE Initial Consultation.