A contractor’s recovery is limited to the contract price which is the sum of the contract as awarded plus any equitable adjustments it is entitled to. If the contractor’s claimed costs on its termination settlement proposal are in excess of the original contract amount, it must prove entitlement to an equitable adjustment to recover the excess by demonstrating some government action or inaction caused the additional costs. You have two choices to present the REA: (1) include it in the "Other Costs" sections of either settlement form (any G&A expenses or profit should be included in those respective sections of the termination) or (2) as a separate claim submitted earlier than the one year deadline for the termination. If you treat the REA as independent from the termination settlement proposal the terminated contractor may first submit it to the government and start the clock for accruing interest. Also if you expect to have problems meeting the time limit, you will not foreclose the right to recovery for contract changes if you submit a separate claim.

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