Terminating Contracts for the Government's Convenience: Answers to Frequently Asked Questions

Summary

This report provides answers to 12 questions regarding termination for convenience -- the exercise of the government's right to bring to an end the performance of all or part of the work provided for under a contract prior to the expiration of the contract "when it is in the Government's interest" to do so -- frequently asked by congressional committees and staff. These questions and their answers address everything from the contractual and other bases for the government's right to terminate to posttermination settlements between the government and the contractor. They also address differences between termination for convenience and termination for default, cancellation, and certain other actions that the government may take (e.g., "de-scoping" pursuant to a Changes clause).