XL EagleTCO (Termination Contracting Officer)
TCO stands for Termination Contracting Officer. A TCO, or Termination Contracting Officer, is a contracting officer who handles terminations. When the government ends a contract early, the TCO works with the contractor to settle costs, collect inventory and finalize the termination.
Most terminations are for convenience, meaning the government no longer needs the work. In a termination for convenience, the contractor can generally submit a settlement proposal for costs incurred and reasonable profit on work done, within the deadlines set in the clause.
Why it matters to a small contractor
If you get a termination notice, stop work as directed, protect any government property, and keep careful records of your costs. Deadlines for settlement proposals are strict, so read the termination clause and contact the TCO quickly.
Example
An agency terminates a janitorial contract for convenience after closing a building. The TCO asks the contractor for a settlement proposal covering supplies bought for the building and costs of the wind-down.
TCO: common questions
What is the difference between termination for convenience and for default?
Convenience means the government no longer wants the work and generally pays for work done plus settlement costs. Default means the government believes the contractor failed to perform, which can carry serious consequences.
Is the TCO always a different person?
Not always. On smaller contracts the PCO may act as the TCO.
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