Posted February 12, 200916 yr comment_528 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 Moreover, if the T for C can be rescinded, could the subcontractor be expected to perform the unexecuted portion of the fixed price agreement for any future lines/options that were in place and bid in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?
February 12, 200916 yr comment_531 how long has the TfC been in place? I suspect their is no rule with a prime/sub relationship, all things negotiable. If they cannot agree to start work again in reasonable time or prices, it could be re-competed.
February 13, 200916 yr Author comment_534 how long has the TfC been in place? I suspect their is no rule with a prime/sub relationship, all things negotiable. If they cannot agree to start work again in reasonable time or prices, it could be re-competed.
February 13, 200916 yr Author comment_535 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.
