Termination for Convenience Costs

The principal concern is to survey the regulatory and decisional law on post-termination costs. The primary regulatory provisions applicable to this topic are found, in Section XV of the ASPR in the Cost Principles of 15-205.42. Since these Cost Principles are mandatorily applicable to the Termination for Convenience clause, substantial attention is given to these provisions. The purpose of this effort is to determine the degree of certainty that exists as to the allowability of the various kinds of post-termination costs which may be claimed by a contractor, and to relate this to the Governments express purpose of compensating the contractor for the effects of its exercise of the right to terminate for convenience.