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May 22, 2024 · 49.601 Notice of termination for convenience. (See 49.402-3 (g) for notice of termination for default .) 49.601-1 Electronic notice. 49.601-2 Letter notice. Parent topic: Subpart 49.6 - Contract Termination Forms and Formats.
- 49.601-2 Letter Notice
The following letter notice of termination is suggested for...
- Subpart 49.6
The following letter notice of termination is suggested for...
- 49.601-2 Letter Notice
Termination for Convenience (“T4C”) is the government’s unilateral contractual right to partially or completely terminate a contract without being required to pay damages, despite full contractor compliance with its contractual obligations.
- General Termination For Convenience Considerations
- Termination Proposal
- Special Considerations For Partial Terminations For Convenience
- Final Thoughts
In a fixed-price contract, the Government has the right to terminate performance “in whole” or “in part” if the Contracting Officer determines that “termination is in the Government’s interest.”See FAR 52.249-2 Alternate I (for construction). This determination must be made in good faith and may be overturned where the Government is found to have a...
In addition to the above-referenced items, the contractor will be primarily responsible for preparing a termination proposal that focuses on the contractor’s recoverable costs. The termination proposal must be submitted within one year of the termination notice. In a termination for convenience context, a firm fixed-price contract is essentially co...
A slightly different situation occurs where a contract is partially terminated for convenience and certain non-terminated work remains to be performed. In such a case, the contractor may file a proposal with the Contracting Officer for an equitable adjustment of the price(s) of the continued portion of the contract where the partial termination imp...
In addition to the mitigation efforts, preparation of the termination proposal and any request for equitable adjustment of the remaining work in a partial termination, a contractor should also consider whether there any other changes or cost impacts suffered prior to the termination. To the extent the Government may have changed or otherwise breach...
Nov 28, 2022 · A FAR termination for convenience clause, commonly referred to as a T4C, is the government’s right to completely or partially terminate a contractor’s performance of work under a contract when it is in the government’s interest to do so.
The following letter notice of termination is suggested for use if a contract for supplies is being terminated for convenience. With appropriate modifications, it may be used in terminating contracts for other than supplies and in terminating subcontracts.
