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Michael11

Terminated with no formal notice?

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Our client (COR) indicated to our project team that our contract was essentially an initiative that for various reasons has been eliminated from their agency. Read, to me at least, terminated for convenience. No one at our company, in any capacity,  has received a formal stop work notice or termination letter. These conversations were mostly handled over client calls, etc. where they indicated that we should be shutting everything down and no longer working (this was at least a month ago). The CO finally just last week put in writing that no additional work shall be performed under this contract.

Is the government required to issue either a stop work or term notice if they want a contractor to stop working and shall we insist we receive one to cover us for any outstanding deliverables that we won't be able to deliver for this reason? We're about 3/4 of the way through the program which is a time and materials GSA task order. The task order has hardly any T&Cs in it. FAR 52.242-15 is in our master FSS agreement but I haven't seen any termination clauses. And the CO now wants us to send them a "final invoice".

From a cost perspective, there's nothing we'd necessarily seek to recover as a result of the program going away (non cancellable commitments, subs, etc.). We're at a point where, if there's no more work, once we send them a final bill for labor hours from a month or two ago, we're done. 

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Protect your company.

Write a letter to the CO relating what you just told us. Mark it urgent. Tell the CO that you are complying with the terms of the contract and any outstanding task orders (snd be sure that you do), but that you want written instructions as soon as possible and that until you receive written instructions you will continue to incur costs as necessary.

Send it to the CO by some method that will provide you with proof of delivery. FedEx would be good, because receipt of a FedEx package tends to get attention. Send a copy to the CO's boss and to your attorney, and be sure to show on the letter that you have copied them.

Stand by for a response.

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Thank you I should have thought of that Retreadfed, you're right on the money, FAR 52.212-4 is in our FSS contract which we've become familiar from another award. And this does speak directly to termination so I'll likely incorporate this into the memo

Thanks for the response, Vern. That's right along the lines of what I was thinking. I imagine I'll run into some 'why do we need to do this' along the way so i appreciate your feedback.

 

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If they ask you why you need to do it that way, tell them that to ask the people who wrote their regulations and contract clauses.

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