Requests for Equitable Adjustment (REA), Claims, & Terminations

Overview

Government contracting is not always straight-forward. Contracts may require changes to scope and price, or worse, termination before the contract is complete. This process is complex and different actions and remedies are required for each situation. Whether you are dealing with a REA or a Disputes claim due to a change to your contract (change to the general scope requiring an equitable adjustment in price, delivery schedule, or both, which result in contract modification), a Termination for Convenience (T4C) where the government can elect to stop the contract, or a Termination for Default (T4D) where it is being alleged your company’s performance is not in accordance with contractual requirements, Redstone GCI can assist. Our experts help you through the proposal preparation process, guide you through your entitlements to certain expenses, and review the end proposal prior to audit to reduce the risk of rejection or questioned costs.

Services

• Decide a Course of Action – Let our specialists help you decide whether to submit an REA under FAR 15 provisions (FAR 15.408, Table 15-2) or a claim under the Disputes Act (FAR 52.233-1). Note: If under DoD, the criteria would be DFARS 252.243-7002, Requests for REA.
• Guide Terminations Actions – Government contracts may be terminated in full or in part. Contract terminations are classified as either 1) Termination for Convenience (T4C), where the government can elect to stop the contract, or 2) a Termination for Default (T4D), where it is being alleged your company’s performance is not in accordance with contractual requirements. Whether your company is facing a partial or full termination, our team of expert consultants can guide you through the stop work order and all further actions needed, such as communication with subcontractors.
• Prepare Termination Proposals – A termination proposal is different from proposals for new contract work. These proposal actions included additional compliance factors that must conform with FAR 31.205-42, Termination costs, and FAR Part 49, Termination of contracts. We can assist you with preparing these proposals and guidance on the costs included in the termination proposal.
• Perform Mock Audits – Our team of government audit specialists can perform mock audits of your termination proposals, REAs, or claims. This process can provide a risk assessment for any upcoming audit or government or prime contractor oversight.
• Contract Review – Our contract experts can assist with detailed contract reviews and provide insight into the impact of contract clauses on your company.
• Participate in Contractual Meetings/Liaison with Contractor and Contracting Officer – Contract termination meetings with the government associated with an REA or claim can be intimidating. Our specialists can assist you through this process by participating in these termination meetings with the Terminating Contracting Officer (TCO), providing insight into the process, and guiding your team through what is needed.
• Advice with Termination for Default (T4D) Actions – T4D is where the government or prime contractor claims you are not progressing on your contract, and therefore, default actions are being pursued. Our expert consultants advise you on what actions to take and discuss the impact on you and your company.
• Develop Your Oversight Team – We can provide targeted education to your team for the skill set you need in your company, whether it be a continuing need for FAR Part 31 (Cost Principles and Procedures), FAR Part 49 (Termination costs), or contract clauses under FAR Part 52.
• Review the Adequacy of Your Submission – Your submission (proposal or claim) to the government or prime contractor must be adequate for urposes of audit and resolution. We understand adequacy requirements and can review your submission to ensure it is adequately supported and meets the requirements of adequacy for audit purposes.
• Lessons Learned – After completion of the REA, claim, or termination, we discuss “lessons learned” throughout the process of working with your team to improve your company and its understanding of government contract requirements on a go-forward basis.