FAR Part 49 Settlement Guide

What is a termination for convenience?

A termination for convenience (T4C) is a contract clause that allows the federal government to end a...

Do I have the right to file a T4C settlement claim?

Yes. If your contract was terminated for convenience, you have the legal right to submit a settlemen...

How long do I have to file a T4C settlement claim?

Under FAR 49.206-3(b), you must submit your settlement proposal within one year of the termination e...

What costs can I recover in a T4C settlement?

FAR 49.206-2 establishes what a T4C settlement proposal must include. Understanding these categories...

What is the difference between SF 1435 and SF 1436?

The two standard forms for T4C settlement proposals differ based on whether your contract involved p...

What is FAR Part 49?

FAR Part 49 is the section of the Federal Acquisition Regulation that governs what happens when a fe...

Can I include profit in my T4C settlement claim?

Yes. You can claim profit in a T4C settlement proposal, within limits established by FAR 49.202. Pr...

What is a Termination Contracting Officer (TCO)?

A Termination Contracting Officer (TCO) is the contracting officer designated to negotiate and settl...

How do I pass through subcontractor costs in a T4C claim?

When your prime contract is terminated for convenience, you are responsible for terminating your sub...

What overhead rate should I use in my T4C settlement?

Your T4C settlement proposal should use your established indirect cost rates — either your negotiate...

What is the FAR 49.202 profit formula?

FAR 49.202 does not provide a fixed formula for profit on T4C settlements — it establishes a framewo...

What happens if I miss the T4C filing deadline?

If you have missed the one-year deadline under FAR 49.206-3(b) without an approved extension, your s...

Can DOGE contract terminations be filed as T4C claims?

Yes. DOGE-directed contract terminations are federal contract actions subject to the Federal Acquisi...

What is a settlement proposal under FAR 49.206?

A settlement proposal is the formal document you submit to your Termination Contracting Officer (TCO...

What does FAR 49.207 certification mean?

FAR 49.207 requires the contractor to certify that the settlement proposal accurately represents cos...

What is an allowable cost under FAR Part 31?

FAR Part 31 establishes the cost principles that determine which costs the government will pay. Unde...

How long does TCO review take for a T4C settlement?

There is no FAR-mandated deadline for TCO review of a settlement proposal. Once you submit, the gove...

What supporting documents do I need for a T4C settlement claim?

A T4C settlement proposal is only as strong as the documentation behind it. Missing or inadequate su...

Can a small business file a T4C claim without an attorney?

Yes. There is no FAR requirement for legal representation in a T4C settlement. The process is admini...

What is the difference between T4C and T4D?

Termination for Convenience (T4C) and Termination for Default (T4D) are fundamentally different acti...