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contractman

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  1. As suggested by formerfed, the contract is T&M but not ID/IQ. The T for C resulted from cancellation of a program that supported the overwhelming majority of staff at the contractor's facility. The WARN Act forces the contractor to incur substantial costs that, but for the termination, would not have been incurred. Is there any case law that enables some of these costs to be considered termination costs?
  2. When a T&M contract is terminated for convenience, FAR 52.249-6 Alt IV specifies a relatively narrow range of recoverable costs. If a contract with a large number of assigned employees is terminated, the contractor may be subject to the provisions of the WARN Act, which requires 60 days notice (and continuing employment) prior initiating any layoffs of the affected staff. Is there case law on the allowability of the cost of labor incurred in the period between the actual contract termination date and the end of the 60 days? Thanks.
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