(Editor’s Note. We often find that contractors do not know what costs they are entitled to when their contract is terminated for convenience so they will frequently under-propose or accept far less of the amount of costs they could have recovered. Sometimes contractors may ask government personnel for advice but this is almost always a bad idea because they are usually unfamiliar with the rules and are not exactly motivated to maximize your recovery. The following article is based on the first of two articles in the February 2008 Briefing Papers by Paul Seidman and David Seidman of Seidman & Associates. This article is, itself, an update to their earlier article written 13 years ago which we have summarized in a prior issue of this newsletter. We have frequently helped clients prepare and defend termination proposals over the last 15 years where we have relied on many of the insights of this earlier article. We think this updated version will also be a classic.)

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