Compliance Stuff

We’ve either heard of or seen several instances where a letter terminating a government contract for the government’s convenience has included an incredibly brief time for submitting a settlement proposal. Regulations  state  that a contractor terminated for the government’s convenience has one year to submit a settlement proposal .  This makes sense.  Depending on the type of contract, the contractor may not even know all of the expenses viable in a settlement.  Further, some contractors will require outside legal and accounting support; getting those resources hired may take more time than permitted in the letters that we have seen. So what should a contractor do?  First, ask the contracting officer for a reasonable extension.   Keep in mind that the contracting officers are under pressure to wrap these contracts up quickly and demanding a full year will likely be poorly received .  Second, take the time necessary to complete an accurate and co...

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 ...