Burr & Forman's David Timm addresses a growing challenge in federal contracting in his recent article for ConsensusDocs.org, Time is Money: Escalating Stalled Termination Cost Negotiations. As government agencies continue to face internal staffing shortages, leadership changes, and red tape, many contractors are experiencing significant delays in resolving Termination Settlement Proposals (TSPs) following a Termination for Convenience. These delays can leave contractors in financial limbo for months, or even years, without payment for work already performed.

In the article, David explores a strategic solution available to contractors when negotiations stall: converting a TSP into a formal claim under the Contract Disputes Act (CDA). He explains that by declaring an impasse and submitting a certified claim, contractors can trigger statutory deadlines that compel the agency to act. This shift not only cuts through internal review delays but also positions contractors to escalate the matter if necessary, either through appeal or potential settlement with the U.S. Department of Justice.

David also outlines the procedural requirements for turning a TSP into a claim, emphasizing the importance of including the correct certification language under FAR 33.207 and ceasing negotiations once a final decision is requested. He discusses the role of the Contracting Officer’s Final Decision (COFD), the implications of agency non-responsiveness, and how a “deemed denial” can open the door to litigation or settlement.

By walking readers through each phase of the process, from identifying a stalled negotiation to pursuing resolution through the Boards of Contract Appeals or the Court of Federal Claims, David provides a clear roadmap for contractors to recover termination costs in a timely manner. His guidance offers valuable clarity for navigating one of the most frustrating pain points in federal contracting today.

To read the full article, click here.