Unique to government contracts is the government’s right to terminate a contract either for cause (a default termination) or because the government decides it no longer wants or needs the goods or services being acquired (a convenience termination). Default terminations carry strong negative connotations that adversely affect the contractor. While a convenience termination does not carry the stigma of a default, it often precludes the contractor from receiving the “benefit of the bargain,” particularly its anticipated profits.
Default terminations can be challenged and, if successful, converted to a convenience termination. We have extensive experience in negotiating terms to mitigate the negative impact of a termination, where possible.