t4c-settlement-proposal

name	t4c-settlement-proposal
title	T4C Settlement Proposal
description	Drafts a Termination for Convenience Settlement Proposal under FAR Part 49. Trigger when a contractor must submit a formal settlement claim after government T4C, prepare FAR 49.602 fixed-price or FAR 49.603 total-cost-basis proposals, or handle inventory disposition under a terminated contract.
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/t4c-settlement-proposal
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	us
practice	government-contracts
language	en
tags	["agreement","drafting","letter","regulatory"]

T4C Settlement Proposal

Draft a FAR Part 49-compliant settlement proposal justifying contractor costs and proposing a fair settlement amount after government termination for convenience.

Prerequisites

Collect before drafting:

1. Contract documents — prime contract, modifications, pricing, contract type (FFP, CR, T&M)
2. Termination notice — effective date, FAR clause cited, stated reasons
3. Financial records — cost ledgers, timesheets, vendor invoices, approved indirect rates
4. Subcontractor data — sub agreements, sub settlement proposals, payment records
5. Inventory records — materials, WIP, finished components acquired for contract performance

Quick Start

1. Identify contract type → select SF 1435 (inventory basis / fixed-price) or SF 1436 (total cost basis)
2. Compile cost data organized by CLIN/deliverable
3. Verify every cost is allowable under FAR Part 31 — exclude FAR 31.205 unallowables
4. Calculate settlement amount (costs + profit − payments − credits)
5. Assemble certifications and attachment index
6. Flag gaps with [DOCUMENTATION NEEDED] and uncertain citations with [VERIFY]

Document Structure

1. Header

Field	Content
Title	Settlement Proposal — Termination for Convenience
Date	Submission date
Parties	Full legal names of contractor and government agency
Contract No.	Include all modification numbers
Termination Ref.	Notice date, issuing authority, FAR clause cited
Basis	SF 1435 (Inventory) or SF 1436 (Total Cost)

2. Introduction & Background

• Contract purpose, period of performance, total value, contract type
• Termination circumstances — cite the specific FAR clause invoked
• Legal basis: FAR Part 49 entitles contractor to fair compensation for work performed and costs reasonably incurred

3. Cost Breakdown

Organize by CLIN/deliverable:

Category	Amount	Documentation