June 28, 2017
Are You Prepared for a Contract Cancellation?
Source: Washington Technology, Darrell Hinemand, Brina Courtney, June 9, 2017
You should be
Going back to his campaign pledges, President Trump promised to cut government waste in conjunction with cutting corporate tax rates. As part of this, the president threatened to terminate contracts with the two largest government contractors: Lockheed Martin’s F-35 and Boeing’s Air Force One programs.
A surge in contract terminations could be in the offing as federal agencies align their goals with White House intentions. With this in mind, preparing for the possibility of a contract termination is a defensive strategy that contractors should undertake now. Here are three key steps you should consider immediately:
- Plan ahead. Never consider your contract as “termination-proof.”
- Fully understand the contract termination process
- Learn how to calculate and submit your Request for Equitable Adjustment or settlement proposal.
The possibility of a contract termination should be incorporated into every government contractor’s business continuity plan. Implementing safeguards and procedures designed to mitigate the risk of a termination will limit the impact it has on your organization’s operations. Ask yourself, “Does my organization have procedures in place to deal with cure notices, customer complaints, and quality issues? What about monitoring subcontractors?” READ MORE….
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