Your Contract Termination Has Been Reversed. Now What?

Mike Wagner’s commentary was included in a Washington Technology article exploring government contract cancelations and information contractors should know about the process.

Mike said that written notices of termination generally are final and conclusive. “There are circumstances in which an agency may seek to rescind a termination and reinstate a previously-terminated contract, but the key is that is this is permitted only with the written consent of the contractor.” “In many cases, reinstatement may be a very welcome development. But depending on the circumstances, it also could be highly disruptive – especially where the contractor already has taken steps to retool and refocus its efforts.”

Regarding post-termination remedies, Mike said settlement expenses and reasonable profit on the work performed are included along with incurred costs. “In this situation, companies absolutely should carefully assess the relative benefits of both reinstatement and traditional termination for convenience remedies and ensure that they are making a well-informed business decision about how to proceed,” he added.