Requests for Equitable Adjustment, Claims and Terminations
Classic tensions between contracting parties can pose serious challenges. On the one hand, many Government agencies, facing tight budgets, want more for less. On the other hand, government contractors want reasonable, profitable compensation for its work. As a result of this quest, to get more-for-less, is that the Government often unilaterally changes contract requirements. In many instances, these changes can be difficult to identify and quantify. If a contractor has been requested to do more work than what it bargained for, a compensable change may have occurred. We help government contractors to identify these circumstances, analyze changed conditions, determine the associated costs, and submit requests for equitable adjustment or claims.
The Federal Government also has unilateral rights to terminate contracts for its convenience or for contractor default. Both can have significant financial impacts. While convenience terminations entitle the contractor to an equitable adjustment, asserting a claim requires careful analysis of economic impacts on continuing operations, interpretation of esoteric Federal Acquisition Regulation (FAR) termination cost principles, and preparation of cumbersome Standard Forms. A default termination, if unchallenged, may require the contractor to return amounts paid under the contract – plus pay the Government’s re-procurement costs.
Navigant Consulting has more experience than any other accounting or consulting firm with helping contractors and their legal counsel to identify and price constructive change order claims, prepare termination settlement proposals, and convert default terminations to terminations for convenience.
