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Contract Disputes And Litigation Support

Our professionals embody a combined diverse experience with Contract disputes and litigation support matters that enables us to offer a comprehensive, holistic view and provide value-added support and resolution to our clients.

An inevitable outcome of our highly regulated federal government contracting environment are disagreements between the contracting parties. Governed by a vast network of complex public laws, regulations and unique requirements, both prime and subcontractors are exposed to contract disagreements, which may take various forms: either administrative or legal.

Capital Edge routinely supports clients with the primary objective of leading to the resolution of a formal contract dispute in the form of quantum or cost impact development and recovery of monetary damages. We assist clients and outside legal counsel with the necessary accounting and financial support that is crucial to a successful settlement.

Common situations leading to contract disputes include:

  • Directed or constructive changes in the scope of work
  • Termination by the government of the contract
  • Differing site conditions
  • Defective specifications
  • Bid protests and notification to stop or delay work

Our contract disputes and litigation support services include:

  • Calculation, documentation, supporting narrative and negotiation of the quantum aspects of REAs
  • Preparation of complete or partial termination for convenience settlement proposals, including all the required Standard Forms, assessment of subcontractor settlement proposals and negotiation support with the customer
  • Day-to-day coordination and support with legal counsel
  • Direct dealings and liaison with Government officials regarding support and resolution of cost impacts, termination settlements and REAs
  • Deposition or expert witness services
  • In-house training regarding termination for convenience and contract changes and disputes

EVENTS

Get Help With Contract Disputes Today

Fill out the form below or call  (855-227-3343)

More Information:

Capital Edge Representative Snapshot
  • Detailed accounting of costs incurred under a multi-year Department of Defense production contract terminated for default and contested with an administrative board of contract appeals
  • REA for cost impacts arising from suspended, then terminated, Department of Defense construction contracts involving the U.S. southern border
  • Cost impact and defense of construction contract labor classifications and prevailing wages dispute with the Department of Labor
  • REAs for construction contract disputes related to differing site conditions, constructive changes to the scope of work and government-invoiced electricity charges for work performed on a U.S. Navy base
  • REA for cost impacts arising from U.S. Army contracting officer inaction and constructive stop work
  • Forensics-based assessment of numerous contractor procurement transactions in response to government allegations of noncompliance with the Buy American Act
  • Cost impacts related to improper contractor billings and payments received in conjunction with an agency Mandatory Disclosure under a significant multi-year government IDIQ contract
  • Termination for convenience of U.S. Army contracts due to the collapse of the Afghanistan government
Contract Dispute Options

Contract disputes may be litigated under the Contract Disputes Act or addressed administratively directly with the contracting officer. A variety of standard government contract clauses exist that allow contractors mechanisms to seek remedies in resolution of disagreements or disputes. The primary objective leading to a formal contract dispute is recovery of monetary damages realized by contractors resulting from the occurrence of unforeseen situations during contract performance or the actions or inactions of other parties.

Frequently Asked Questions

What is an REA in Government Contracting?

An REA is a ‘request for equitable adjustment’ whereby a contractor may seek adjustments to a contract price, schedule or both.

What situations may give rise to submission of an REA?

Several situations may arise during contract performance for which an REA may provide applicable relief.  Examples include – a customer-directed change to the scope of work, changes in the performance schedule (either delays or accelerations), defective specifications, differing site conditions and unreasonable or excessive customer inspection requirements.

What contractual rights do I have to submit an REA?
Various standard FAR clauses exist providing potential remedies for which contractors may submit REAs, frequently including FAR 52.242-14 (Suspension of Work), FAR 52.242-15 (Stop-Work) and FAR 52.243-X (Changes).

Can the government terminate a contract for convenience when the contractor is not at any fault?

Yes. The government has wide discretion to terminate contracts for reasons completely out of the contractor’s control. Examples include – loss of funding, change in needs or technologies, political environment, bid protest decisions and impossibility of performance.

How long do I have to submit a termination settlement proposal?

The standard FAR clauses require the submission of a termination settlement proposal within one year of the effective date of the termination. Frequently, prime contractors will modify this clause and require submission from subcontractors within 6 months from the effective date of the termination.

 

What is a T4C and TSP?

A T4C is an acronym for ‘termination for convenience’ and TSP is ‘termination settlement proposal’.

 

Am I entitled to reimbursement for my unpaid costs incurred prior to the termination?

Generally, yes. The termination settlement process can be fairly extensive and is governed by FAR Part 49. A fundamental principle of the settlement process is to make the contractor whole because of the termination action and based on concepts of fairness and equity.

 

What are directed and constructive changes?

A directed change is a formal (hopefully written) direction or instruction from the customer to change a contract scope of work requirement. A constructive change is an informal change to the contract scope of work for which the customer did not specifically direct or authorize.

 

What is quantum?

Quantum is the calculation of cost impacts or damages arising from the change in contract scope requirements experienced during performance of the contract or the termination of the contract itself. The quantum should be calculated on an as-detailed basis as possible, specific to discrete items that caused the change in contract scope, supported by accounting or project records and presented in a clear and logical manner.

 

How are REAs or T4Cs settled?

Quantum is the calculation of cost impacts or damages arising from the change in contract scope requirements experienced during performance of the contract or the termination of the contract itself. The quantum should be calculated on an as-detailed basis as possible, specific to discrete items that caused the change in contract scope, supported by accounting or project records and presented in a clear and logical manner.

Contract disputes are difficult and exhaustive, but  necessary. Don't go it alone when you can have it    navigated with and for you! Contact us today.

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CAS Training

TRAINING & EVENTS

We have quite a few upcoming trainings that could benefit you and your team as you navigate the CAS. Check out our existing events or contact us about custom training for your business today!
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About Capital Edge Consulting

Capital Edge government contract consultants support Government Contractors and Federal Grant Recipients. Our consultants specialize in the regulatory compliance matters you need.

Contact Our Experts

8200 Greensboro Dr #1400
McLean, VA 22102

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