Federal contract being terminated; but submitted a business proposal three months ago - can I be compensated?

@federal contractor, can you provide or identify the FAR or other clause in your contract that covers termination? Also, can you provide the notice sent to you that terminated the contract?

@federal contractor What is someone here says no? Are you going to believe them?

Read the Federal Acquisition Regulation, Part 33, Subpart 2, Disputes and Appeals. Read it carefully. Then write a letter demanding compensation for your bid and proposal costs and any other costs you have incurred in preparation for performance that was terminated for the government's convenience.

Document the costs. Demand a contracting officer's final decision within 60 days or less. Then follow the rules in FAR 33.2.

What's the worse that can happen? They'll say no? Then you can appeal.

In addition to the advice Vern provided, you need to read FAR Part 49, the relevant termination clause in your contract and any terms in your contract concerning preparation of "business proposals" and compensation for their preparation.

As a contractor, if I were seeking  only $4,000 I would not spend a lot of time on this. I would simply write a letter demanding to be compensated. They will probably say no, and they will likely explain why not. Then you can decide whether you think they have a valid basis for turning you down.

Heck. No way I would read FAR Part 49 and try to figure it out for $4,000.

On 3/20/2025 at 9:12 PM, federal contractor said:

Hello everyone,

I am new to this community. My contract with the Federal government is being terminated due to the president's executive orders. However, I submitted a business proposal a few months ago and I would like to be compensated for the creation of this 12-page proposal to the federal government. In my proposal, I said the creation of the proposal would be $4000. Can I be compensated for this proposal even though the contract is being terminated?

Was the $4000 proposal for the initial contract? When was the contract awarded?

Was the "business proposal" you refer to performed as part of the work under the contract which is being terminated? If so, you most likely should be compensated.

The Government does have the right to "terminate for convenience", but this is most typically done along with a settlement of costs for work performed prior to the termination. 

Have you submitted a final invoice for the work performed under the contract prior to the termination? If not, that might be a good place to start.