Stephen Bacon Featured in Federal Drive Podcast Discussing Contract Terminations for Convenience
Rogers Joseph O’Donnell shareholder Stephen L. Bacon joined Federal News Network’s Terry Gerton for a podcast episode of the Federal Drive with Tom Temin to discuss how contractors should prepare for contract terminations for convenience, and what to know about their rights and responsibilities.
In the episode, “What contractors need to do now to prepare for terminations for convenience,” Bacon explained that contractors typically have one year to submit a termination settlement proposal detailing costs incurred after the government terminates a contract for convenience. However, he also cautioned that this deadline can be surprisingly difficult to meet, especially for contracts involving multiple subcontractors.
“Start with your contract. That’s the place to start and look at your termination for convenience clause and see which one you have,” Bacon said in the episode. “Your rights are going to vary pretty significantly depending on that and your strategy in terms of how you maximize your recovery.”
Workforce-related expenses, such as severance costs for laid-off employees, can potentially be included in settlement proposals. Bacon explained that all claimed costs must be thoroughly documented with proper accounting records.
Bacon recommended that contractors seek assistance when needed, noting that legal and consulting costs are usually recoverable. Even for larger contractors with institutional knowledge, the specific teams handling terminated contracts may need guidance through this uncommon process.