Termination for Convenience and Contract Closeout Services

Termination for Convenience or Default:

ReliAscent ’s staff are experts at Government Contract Management, from Contract Closeouts to Terminations for convenience.  Generally speaking, there are two types of contract terminations:

  • Termination for Default
  • Termination for Convenience

Certainly all contractors will work to avoid termination for default.  ReliAscent can help small business in this regard by performing the back office tasks, insuring compliance, so that the contractor can focus on the content of the contract, the quality, the delivery and the other aspects that will assure the government will be pleased with the deliverable.

Termination for Convenience is outside the control of the contractor.  This is where the government needs to end a contract or grant due to either political issues or other department issues.  Almost all DoD, and many other agencies as well, contracts include the following clauses:

  • FAR Clause 49-502
  • FAR Clause 49-503
  • FAR Clause 52-249

 These clauses allow the government to terminate the contract for the convenience of the government at any time.  As a contractor, you have certain rights when these clauses are implemented.  Knowing these rights and how to position your company is critical at this time.  You need someone that has been through the process and is an expert.  Getting ReliAscent's experts involved as early as possible in this process will help your company make the most of this troublesome situation and protect your rights. 

Contract Closeout Services:

Many times work finishes on a federal contract (or grant) and the contract is not closed out per the government's procedures.  This causes several problems:

  • The Government has an "open item" on their side. 
  • Open items can lead to restrictions for that contractor receiving future contracts.
  • The PI on the contract can be "blackballed" by the government, hindering the chances of obtaining future contracts &/or grants.
  • Many times the government holds out a portion of the contract (or grant) funding until the contract is closed out properly.  This is money that you as a contractor have not realized until the contract is closed out.

ReliAscent has been instrumental in helping clients close out contracts, sometimes contracts that were 6 -7 years past completion.  For some clients, closing out these old contracts resulted in obtaining funds that the company had either forgotten about or written off.  Let the experts at ReliAscent review your contracts &/or grants to see how we can help you avoid some of these pitfalls and perhaps realize an influx of cash.

Federal Government Quick Closeout:

In cases where it appears there could be a delay in determining final indirect rates, the contracting officer can utilize a quick closeout procedure.  Typically this allows for the use of current billing rates to close out the contract without waiting for final billing rate determination. There can be restrictions on the total amount of unsettled costs and it requires the contract to be physically complete.  Again, ReliAscent can help you determine if this might be an option for you and how to proceed.