Elizabeth N. Jochum, Robyn N. Burrows, and Sara N. Gerber ●
The Department of Government Efficiency’s (“DOGE”) scrutiny of federal contracts has resulted in a spike in notices of termination for convenience. Given DOGE’s broad mandate to reduce federal spending, we expect a sustained increase in the use of terminations for convenience to end contracts the administration considers “wasteful” or not aligned with its priorities.
But while termination notices make one thing clear—the contract is over—it can leave contractors with questions about their rights and obligations.
What Is a Termination for Convenience and Can I Challenge It?
The right to terminate for convenience is included expressly in almost all government contracts—and is generally considered to be a government right even when not expressly included.[1] Terminations for convenience allow the federal government to unilaterally end a contract (or a portion of a contract) immediately and without alleging contractor fault. The government typically invokes a termination for convenience after determining the contract is no longer in its best interests, and this can occur for a wide variety of reasons, such as budget cuts, or changes in government priorities or project requirements. Typically, the government does not explain why it is terminating a contract for convenience.
Continue reading “A Roadmap for Terminations for Convenience in the DOGE-Era”
