Today we are concluding, for now, our discussion on Terminations. We invite you to view our Termination FAQ that was edited by Terry Nuzzo. This FAQ has been available on our website (http://www.pacificnwc.com/) for a number of years or can be accessed and downloaded directly by clicking here.
In summary, the Government's primary objective for contract terminations is to compensate contractors fairly and negotiate a settlement by agreement. However, a contract termination for convenience is no simple matter and contractors should expect to expend considerable effort and cost in settling their terminated contract. Understanding the FAR cost principles, settlement proposal preparation process and the consequences of a contract termination can have a significant impact on maximizing the cost recovery. Fortunately, contractors’ costs incurred to settle a terminated contract are recoverable.