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Termination for Convenience

Termination for Convenience The Government has the right to protect the public if their needs change. The Government, therefore, may cancel a government contract without cause thanks to the Federal Acquisition Regulation. Your goal must be to recover an equitable termination settlement and avoid a negative past performance determination because of a Termination for Convenience.

What Is Termination for Convenience?

Before we get too deep into how the Busch Law Firm can assist you in handling a surprise Termination for Convenience, let's look at what it is and what it is not.

The Termination for Convenience clause is unique to the Government contract process. It allows the Government to terminate a part of or the entire contract at any time and for any reason.

Termination for Convenience implies the Government does not find any fault in its contractor's performance. The Government is simply terminating the contract for a reason other than your performance. It often has to do with the need to take advantage of new technology or political developments that may change the Government's needs.

The Termination for Convenience clause is so important that the courts have determined its provisions have the force and effect of law and, also, are incorporated as a matter of law into all contracts. This is the case, even if the clause is left out of the contract.

Mr. Busch of the Busch Law Firm is an experienced government contract lawyer and guides clients through the procedures of the Termination for Convenience to recover an equitable termination settlement and avoid any negative impact to their past performance determination.

Termination for Convenience Clause and Your Reimbursement

Along with the right to terminate a contract effort early, the Termination for Convenience clause allows the prime contractor to seek reimbursement for all reasonable and allocable costs. You must ensure you provide a version of this clause to all subcontractors and account for their costs in your settlement proposal. All contractors are normally entitled to a reasonable profit on these costs.

There are various regulatory procedures that must be followed to account for all allowable costs and the impact of the termination. Mr. Busch has extensive experience with developing his client's entitlement and quantum justifications for an equitable termination settlement proposal and negotiation.

Government Termination for Convenience and Subcontractors

Most important is that the Government contracting process allows a subcontractor to submit a pass-through claim when there is a Termination for Convenience type clause in the subcontract. The prime contractor and subcontractor must ensure a form of the Termination for Convenience clause is in any subcontract or purchase order at all tiers for a variety of reasons.

Mr. Busch works with both prime contractors and subcontractors to draft the proper Termination for Convenience pass-down clause. A proper Termination for Convenience clause is the baseline for the development of a certifiable settlement proposal.

Government Contract Attorney

To recap, in cases of Termination for Convenience, Attorney Busch assists clients with:

  • Guidance through the procedures of the Termination for Convenience;

  • Recovering an equitable termination settlement through entitlement and quantum justifications;

  • Avoiding negative impact to your past performance determination;

  • Seeking reimbursement for all reasonable and allocable costs; and

  • Negotiation.

Call 303-904-9439 today to schedule your free consultation and to learn more about your rights under the Termination for Convenience clause.

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