The Government Contractor’s Guide to Termination for Convenience
The Trump administration, as part of its efforts to reshape the federal government, began terminating federal contracts for the convenience of the government almost immediately after coming back to town . These contract terminations show no signs of slowing in the near term. Accordingly, government contractors need to know their rights and obligations so that they can be best positioned if one or more of their contracts are terminated. This article provides a user-friendly guide for government contractors on these important rights and obligations. General “ Termination for convenience means the exercise of the Government’s right to completely or partially terminate performance of work under a contract when it is in the Government’s interest” (Federal Acquisition Regulation (FAR) 2.101) . The right to terminate for convenience is made a part of almost all government contracts by inclusion of the standard Termination for the Convenience of the Government clauses in FAR 52.249-1 ...