Terminations for Convenience: Maximizing Recovery

Attorney Hilary S. Cairnie and Aaron Raddock, Director of Government Contracts & Grants Advisory Services at BPO, lay out the issues that may arise in case of a termination for convenience by the federal government. Cairnie and Raddock begin by explaining which contracts could be subject to such a termination and reviewing relevant contract language and Federal Acquisition Regulation provisions. Afterwards they review the duties both the contractor and the Government must undertake during the termination process, and lay out strategic issues contractors should consider before entering settlement negotiations with the Government. Finally, they discuss ways to ensure contractors can recover the maximum amount of their allowable costs, as well as lost profits, and how contractors may seek relief from an undesirable settlement.

Learning Objectives:

I.     Understand which contracts may be subject to termination for convenience

II.    Know duties of the Government and the contractor in termination process

III.   Build a strategy to approach negotiations for settlement

IV.   Maximize recovery of allowable contractor costs, including lost profits

V.    Identify options for relief in case of an unfair settlement