In recent months, federal contractors have seen an uptick in very specific types of contracting activity. As a result of various Executive Orders, and DOGE directives for agencies to conduct contract reviews and engage in mass contract cancellations, there has been a flurry of terminations for convenience, suspensions/stop-work orders, and contract modifications. Payments—even those undisputedly due and owing—have been delayed, and other EO- and DOGE-related impacts (as well as mass federal employee layoffs) have given rise to various claim issues. Many contractors have been left confused, and unsure how to proceed in response to these developments. This Comment seeks to address those concerns and provide contractors with a guide on how to navigate recent challenges, with a focus on preserving claim rights and maximizing recovery. Because of the breadth and complexity of the issues faced by Federal Government contractors in the current climate, this Comment has been drafted in two parts. This, the first of two installments, addresses the issue of unpaid invoices, and discusses terminations for convenience. Next month’s follow-up will discuss suspensions and stop-work orders, as well as the potential for other types of claims arising out of EOs, DOGE-related impacts, and tariffs.

Click to read the full article in The Government Contractor.

Photo of Maria Panichelli Maria Panichelli

Maria Panichelli focuses her practice exclusively on federal government contracts and procurement, with a concentration on bid protest and claims litigation and small business procurement. Maria’s practice includes: asserting and defending against bid protests; contract interpretation and performance counseling; the preparation and negotiation…

Maria Panichelli focuses her practice exclusively on federal government contracts and procurement, with a concentration on bid protest and claims litigation and small business procurement. Maria’s practice includes: asserting and defending against bid protests; contract interpretation and performance counseling; the preparation and negotiation of Requests for Equitable Adjustment (REAs) and Contract Disputes Act (CDA) claims as well as related claims litigation before the Boards of Contract Appeals, Court of Federal Claims, and the Federal Circuit; statutory and regulatory compliance counseling; federal subcontracting (including drafting and negotiating subcontracts for use on federal projects, the preparation and litigation of pass-through claims, the drafting and negotiation of liquidating agreements, and the litigation of prime/sub disputes and Miller Act claims); contract terminations (for convenience and for default); suspensions and debarments; avoiding and mitigating Organizational Conflicts of Interest (OCIs); False Claims Act (FCA) defense; and all aspects of small business procurement.