Washington, D.C. Associate David Timm authored an article for the National Contract Management Association exploring the complications government contractors face following a termination for convenience (T4C).

In the article, David explains that contractors often face lengthy delays after submitting termination settlement proposals (TSPs). These delays have been exacerbated by government personnel departures. After significant delays, “. . . contractors with an outstanding sum of money owed should be wary that their claim has landed in internal government review purgatory.”

He also outlines how stop-work orders (FAR 52.242-15) and suspension of work orders (FAR 52.242-14) create additional uncertainty for contractors, who are required to mitigate costs while waiting to learn whether the government will resume work or terminate the contract altogether. These provisions, David notes, can be disruptive and lead to further disputes over cost recovery and profit.

To help contractors break through delays, David suggests “. . .invoking a legal concept called ‘impasse’ and filing a complaint at the Court of Federal Claims (COFC).” He explains, “This means that the contractor can essentially convert the TSP to a claim and demand a resolution.”

While acknowledging that invoking impasse can be viewed as aggressive, David emphasized that it may be the most practical option. “The case for using the impasse theory is simple: declaring impasse allows you to move into a statutory claim and litigation procedure to gain certainty and control over the resolution of your TSP. The costs are low and there is not significant risk.”

Through his analysis, David provides contractors with both regulatory context and practical strategies for navigating stalled settlement negotiations and protecting their rights.