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 government can take as long as it needs — which in practice ranges from 90 days to several years.

Typical timelines: Straightforward service contract under $100,000: 90–120 days from submission to final settlement. Service contract $100,000–$500,000: 120–180 days, often with a DCAA audit. Complex settlements with multiple subcontractors above $500,000: 12–24 months. Cases with contested cost items or contractor appeals: 24 months or more.

What happens during review: The TCO will read your proposal, identify cost items that need support, and issue a written Request for Additional Information (RAI). Respond promptly to RAIs — every week you delay is a week added to the timeline. Once satisfied with the data, the TCO schedules a settlement meeting. You negotiate. If you reach agreement, you execute a settlement agreement and the government processes payment.

DCAA audits: For larger settlements, the TCO may refer your proposal to DCAA for audit before negotiating. Cooperate fully and promptly. Delays in providing audit data extend your timeline and can frustrate the process.

If the TCO is unresponsive: Follow up in writing every 30 days. Document your follow-ups. After a reasonable period — typically 6–12 months with no progress — you may convert to a demand for payment under the Contract Disputes Act, which gives you a right of appeal to the Armed Services or Civilian Board of Contract Appeals.

The practical priority: A complete, well-organized proposal moves faster than a bare-bones one. TCOs review proposals alongside their active contract workload. A proposal requiring 15 follow-up questions gets deprioritized.

RELATED GUIDES

• → What is a TCO?
• → What is a FAR 49.206 settlement proposal?
• → T4C settlement supporting documents