Navigating Stop-Work Orders and Contract Termination

Cherry Bekaert: Government Contractors Guidance

As of Monday, January 28, President Donald Trump has signed various executive orders requiring the halt of federal funding for various programs. This will allow the administration to determine the program’s alignment with legal and presidential priorities.

These orders impact funding for foreign aid, non-governmental organizations, diversity, equity and inclusion (DEI) programs, gender ideology, Green New Deal initiatives, as well as funding under the Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA) programs.

Eric Poppe, a Managing Director in Cherry Bekaert’s Government Contracting Industry practice, is joined by Jeff Annessa, a Senior Manager in the Firm’s Government Contracting practice who spent 13+ years with DCAA, to discuss what this means for government contractors moving forward.

Listen to learn more about:

• What it means when an organization receives a stop work order
• How to understand the terms and conditions of the contract or award
• When to reach out to your contracting officer
• The flow down of responsibilities for prime contractors vs. subcontractors when receiving a stop-work order or a termination of contract
• The importance of documenting all costs and expenses
• The differences between terminations of fixed price and cost-plus contracts or awards
• Strategies to control and mitigate costs
• Steps you can take to help minimize the settlement process timeline
• Ways to maximize cost recovery during settlement or negotiations

Cherry Bekaert’s team of government contracting professionals has significant experience with the complexities and challenges of navigating these types of executive orders. If you have any questions specific to your situation, our government contracting consultants are available to discuss your situation with you.

View all Government Contracting Podcasts