Termination for Default  

termination for default lawyers for government contracts

  • Watson & Associates’ Government Contracts attorneys guide clients through all phases of a contract termination for default (T4D). We help from the notice to cure process all the way to show cause and ultimate contractor default termination decisions.
  • Whether the contracting officer issues a termination for cause under FAR Part 12 or Default Termination under FAR Part 49, we can help you assess the merits before filing an appeal to the various boards of contract appeal or the United States Court of Federal Claims (COFC)

When the federal government terminates your contract for default, it can still recover unliquidated progress payments, reprocurement costs for the same or similar items, services, or work, and any other damages resulting from your failure to perform according to the contract terms. This benefit to the government cripple businesses. Therefore, developing a proper legal defense to a contract default termination is critical.

Default of a government contract is looked at by the courts as a harsh penalty. Contracting officers should look at this measure only as a last resort and not as a threat or retaliation to put companies out of business. Furthermore, the impact of a default termination has serious consequences for company past performance when bidding on future government projects. Having a government contract termination lawyer is essential to make sure that the agency followed are statutory requirements before issuing a notice of contract default.

The Watson law firm represents government contractors of all sizes, including some of the largest defense contractors. Some of our staff have worked for federal contracting agencies and understand the frequent mistakes made.

FAR Termination for Default Meaning

 When the Contracting Officer (CO) issues a T4D on your federal contract, it means either a complete or partial termination of the contract.

Government contract default termination is 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. These are all fact-driven situations. When the agency defaults the contractor, the company is left in a tough situation and has to defend itself. The company’s future is at risk.

If. your company can establish, or it is otherwise determined that your company was not in default or that the failure to perform is excusable; i.e., arose out of causes beyond the control and without the fault or negligence of your company, the default clauses prescribed in FAR 49.503 and located at FAR 52.249 provide that a termination for default will be considered to have been a termination for the convenience of the Government, and the rights and obligations of the parties governed accordingly.

Appellate courts looks at a government contract default as a drastic sanction from the government and look at these decisions very carefully.

The contracting officer will more than likely state that the default decision was due to your actual or anticipated failure to meet your contractual obligations.

Termination for Cause Vs Default

 When the government issues a contract Termination for Cause, the result is no different than a traditional default. The difference between termination for cause vs default is that the termination for cause is issued under a FAR Part 12 contract for the acquisition of commercial items.

Consequences of Default Terminations 

 When the government terminates your contract for default, it can mean a potential end to your future of doing business with the federal government. Why? Because for every contract you submit a bid for in the future, your past performance will show the previous default and can have a dangerous impact on your ability to become a successful awardee in future bidding efforts.

  • When the Government terminates a contract for default, the Government may be entitled to recover from you, the contractor, unliquidated progress payments, the excess costs of reprocuring the same or similar items, services, or work, and any other damages resulting from your failure to perform.
  • You can be liable to the government for the excess costs of reprocurement are the difference between the price of the affected deliverables in the defaulted contract and what the Government pays to reprocure the supplies or services to complete the work.

FAR Termination for Default Appeal Attorneys Services 

As termination for cause government contract attorneys, we help clients throughout the United States and overseas to navigate through the termination for default appeal process and also with the following:

  • Responding to cure notices and show cause letters
  • Appealing the contract termination T4D) action to the respective Board of Contract Appeals or Court of Federal Claims
  • Litigation and negotiations to have defaults turned to termination for convenience
  • Consulting and preventive guidance
  • FAR compliance and outside counsel services
  • Help with terminations that lead to investigations and suspension and debarments.

T4D Litigation and Appeals

When the contracting officer issues a notice of contract termination, you can appeal the decision to the Civilian Board of Contract Appeals, Armed Services Board of Contract Appeals (ASBCA) or United States Court of Federal Claims (COFC). In either case, you must act promptly. Each court has its own rules that you must follow.

Be mindful that appealing government contract  T4D default decisions to the U.S. Court of Appeals for the Federal Circuit also have certain deadlines and court rules to follow. Our termination for default appeal attorneys can explain and represent you in these matters.

Converting a Default Into a Termination for Convenience

If an appellate court agrees that the termination default was unlawful, the court only has the authority to convert the T4D default into a termination for convenience. The cost of litigation and appellate practice is very expensive. However, the future of doing business with the federal government and having a better past performance record may be worth the effort.

Contact Our Government Contract Termination for Default Clause Lawyers

If your company is terminated for default, Watson & Associates’ contract termination appeal lawyers frequently litigate adverse contractor termination cases before the various government contracting courts. Call our government contract appellate lawyers for immediate help with Federal Acquisition Regulations FAR Part 49 Cases.  Call Toll Free 1.866.601.5518.

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GET IMMEDIATE HELP WITH APPEALS AND LITIGATION

If you have received a notice of default letter and need help with unlawful terminations and dispute resolution, FAR termination for default government contracts appeals, contact our federal government contracts T4D attorneys to protect your contractor termination rights today.  Call for a FREE initial consultation – 1-866-601-5518.