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Termination for Convenience vs. Contract Closeout: A Timely Overview
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Termination for Convenience vs. Contract Closeout: A Timely Overview
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May 2, 2025
Termination for Convenience vs. Contract Closeout: A Timely Overview
By Jake Leishman
This white paper provides an in-depth look at the two distinct but often confused federal contract administrative procedures:
Contract Closeout
and
Termination for Convenience (T4C)
. It outlines the legal, financial, and procedural differences between the two, highlights the recent surge in terminations under the Department of Government Efficiency (DOGE), and discusses the implications for contractors navigating an uncertain federal procurement landscape in 2025.
The author contextualizes contract closeout and T4C historically, legally, and practically—illustrating how closeout is an orderly administrative conclusion of a completed contract, while T4C is a unilateral government action taken for its own interests, often before full performance. The paper stresses the importance of understanding FAR parts 4.8, 12, 49, and others, and provides guidance for contractors on how to prepare, respond, and protect their interests.
Experts
Judy (Jake) Leishman
Attorney
Jake Leishman is an experienced government contracts attorney who develops and delivers instruction, legal consultation on legal, contract administration, acquisitions, policy implementation, and compliance issues.
Jake began as a social worker then moved to education, serving as the Direct...
See Full Bio
