Not all termination settlement proposals result in a fair payout. The government may dispute certain claimed costs or offer a settlement amount that does not fully compensate the contractor. In these situations, contractors have legal options to challenge an unfair denial or reduction.
The first step is understanding why the settlement was denied or reduced. Common reasons include insufficient documentation, disputed indirect costs, or government claims that the contractor is not entitled to certain reimbursements. Carefully reviewing the government’s response and identifying gaps in documentation can help address these issues.
If the contractor believes the government’s decision was unjustified, they can file an appeal. The most common forums for appeal include:
Contractors should act quickly, as appeals and dispute resolution mechanisms have strict deadlines. Missing these deadlines can result in forfeiture of claims.
Legal representation is highly recommended for contractors facing a denied settlement. Government contract attorneys understand the nuances of FAR regulations and can present a strong case for reconsideration. In many cases, disputes can be resolved through negotiation or mediation before reaching formal litigation.
By taking a strategic and proactive approach, contractors can fight for the compensation they deserve and protect their financial interests in future government contracts.
Martin & Jones’s professionals have experience assisting and advising clients who have had their federal contracts terminated. We can assist clients preparing and negotiating a termination settlement proposal. If your organization’s contract has been terminated, contact Martin & Jones immediately and one of our attorneys will discuss with you how we can be of assistance to your organization.
Have you had your government contract terminated for convenience? Our experienced legal team can help you recover what you’re owed. Contact us today for a consultation.