Contract Terminations

Course Description:

This course focuses on processes and legal considerations related to contract terminations. It begins with a review of the basic principles and sources of law relevant to the termination of government contracts and various legal issues that surround this particular area of contracting. Topics include reasons why contracts are terminated, who is responsible for terminations, and what type of termination is most advantageous to the government.
Topics will include:

• Contract clauses relating to termination and excusable delay;
• The authority and responsibility of Contracting Officers to terminate contracts in whole or in part for the convenience of the Government or for default;
• Duties of the contractor and the Contracting Officer after issuance of the notice of termination;
• General procedures for the settlement of terminated contracts;
• Settlement agreements.

Prerequisites:

This course is recommended for intermediate-level contracting personnel with at least 2 years of contracting experience.

Learning Objectives:

Students who complete this course should be able to—
• Given a scenario on a contractor’s performance, justify an acceptable Government remedy.
• Recognize the factors that must be considered when terminating a contract.
• Determine the method of termination based on the decision to terminate.
• Discuss the characteristics of three types of Government contract termination: convenience, cause and default.
• Identify and apply procedures applicable to non-commercial terminations.
• Identify and apply procedures applicable to commercial terminations.
• Identify the procedures for a termination for convenience (T4C).
• Identify procedures for a Termination for Default (T4D).
• Identify procedures for a Termination for Cause.