Looking for some general advice - we are a prime with a contract with an US Government agency. Due to reasons I won't get into here, the KO is proposing a no-cost settlement which releases us from the contract obligation for no-cost, instead of Termination for Default. The sticky point is that the CPARS review being submitted includes Unsatisfactory rating for Quality/Schedule/Management, which we disagree.
My understanding is that Termination for Default would also carry the same CPARS ratings, but in addition a potential cost component for the re-compete (e.g. 2.5% of the value of the contract), therefore a no-cost settlement seems like a great win-win but the CPARS ratings concerns us. I would expect a no-cost settlement to be a not-at-fault mutual termination and neutral CPARS ratings.
Being this is an 8(a) contract through the SBA, I wanted to ask if the above resonates with your experience while I await response from our counsel/SBA rep.