In certain circumstances, federal government contracts can be terminated by the government. The key, if your contact is terminated, is to understand what type of termination has occurred, what the consequences are, as what rights you have to challenge the termination, or seek compensation.
Terminations can be for convenience (“T for C”) or for default (“T for D”). A T for C does not imply that there was any fault on the part of the contractor, but a T for D means the government believes that the contractor failed to perform by the provisions of the contract. This distinction has other important implications as well. If terminated for convenience, a contractor is entitled to payment for the work done, and for any preparations made for the terminated portion of the contract. In contrast, if defaulted, it is possible that a contractor will owe the government money in connection with reprocurement. Getting terminated for default can also negatively impact a contractor’s ability to get future contracts. This webinar will cover the ins and outs of terminations. Learn all about T for Ds, how to challenge them, how to convert them to T for Cs, and how to deal with reprocurement claims. We will also discuss T for Cs, the response process and seeking compensation.