| 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:
- Contract documents — prime contract, modifications, pricing, contract type (FFP, CR, T&M)
- Termination notice — effective date, FAR clause cited, stated reasons
- Financial records — cost ledgers, timesheets, vendor invoices, approved indirect rates
- Subcontractor data — sub agreements, sub settlement proposals, payment records
- Inventory records — materials, WIP, finished components acquired for contract performance
Quick Start
- Identify contract type → select SF 1435 (inventory basis / fixed-price) or SF 1436 (total cost basis)
- Compile cost data organized by CLIN/deliverable
- Verify every cost is allowable under FAR Part 31 — exclude FAR 31.205 unallowables
- Calculate settlement amount (costs + profit − payments − credits)
- Assemble certifications and attachment index
- 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 |
|---|
