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T for C


DMB044

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Under what rule, if any, may a prime contractor rescind or change an issued termination for convenience to a subcontractor? In this case, the Federal Agency may want to resume work given the anticipated increase in spending that it may get from the stimulas package. The prime contractor issued the T for C at the time the customer could no longer fund the project. If it can be done, can it be done unilaterally? Moreover, if the T for C can be rescinded, could the subcontractor be expected to perform the unexecuted portion of the fixed price agreement for any future lines/options that were in place and bid in the basic order? I can understand how an equitable adjustment would be in order for any options that were not exercised during the suspension of work.

Any thoughts on this?

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The t4c was executed last August. The subcontractor took until December to propose a settlement. I was asked to evaluate the proposal on behalf of the prime. In the meantime, we had the introduction of the stimulas into the picture. I will recommend the t4c with a recompete, given the agency has not provided any direction (just rhetoric.) It's time to close up shop on this one.

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