New Checklists for Termination Settlement Proposals

DCAA (Defense Contract Audit Agency) recently posted several  adequacy checklists for termination settlement proposals for cost and fixed priced contracts.

• Cost type contracts
• Fixed price -inventory basis
• Fixed price - total cost basis (most common form of submission)

Checklists are useful tools for ensuring that proposals conform to the Government's basic expectations submissions. Some checklists are mandatory such as the DFARS (DoD FAR Supplement) Proposal Adequacy Checklist found at DFARS 252.215-7009. Most, including the termination settlement proposal adequacy checklists linked above and others such as the incurred cost adequacy checklists, are voluntary.

Whether voluntary or mandatory, it seems wise to us for contractors to utilize these checklists during the preparation of whatever submission will be presented to the Government. These checklists inform as to what the Government will be looking at and should reduce the change that submissions will be returned as inadequate.