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Vinnie888

No-Cost Settlement and Unsatisfactory CPARS?

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Hi There,

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.

Thanks.

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  • I don't think there is necessarily a relationship between a no-cost settlement and CPARS ratings.
  • I agree that a no-cost settlement is much better than a T4D. If the government T4D'd you, do you think it would be justified? If so, the settlement sounds like a very nice alternative.
  • If you strongly disagree with your CPARS ratings, you can request a contracting officer final decision and then appeal it. However, if you think a T4D might be justified, I would have a hard time seeing how you could, at the same time, think you should have a good CPARS rating.

 

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This is too important an issue for you and your company to seek advise in this type of forum  If you and your company have not already done so hire a good government contracts attorney and get them on the case ASAP. 

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33 minutes ago, policyguy said:

This is too important an issue for you and your company to seek advise in this type of forum  If you and your company have not already done so hire a good government contracts attorney and get them on the case ASAP. 

Absolutely correct advice!

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If the contract is with the SBA, why can't the CO just have the SBA switch out performers and carry on with the work... Isn't that a thing? People always told me it was (LOL), but I never experienced it myself to be sure. Just thinking out loud here as I eat some tacos.

But yeah, you need a good attorney. God speed.

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Frog leg 🐸 tacos? 

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Thanks for the input.  Yes we retained counsel but the net result was that the penalty risks (and costs) under FAR 49.402-2, FAR 49.402-6, and 49.402-7 far outweighs the outcome of protesting a no-cost settlement.  We'll protest the CPARS windfall when the time comes.

And no the SBA was not helpful in this manner, although it provided lateral leniency from the KO's perspective.

Cheers.

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Hey Vin,

If you cut and pasted those comments from an email or other document from your attorney, then don't do that.

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