T4c Settlement Proposal

Draft T4C Settlement Proposals in Minutes, Not Hours

14 minutes with CaseMark

Run this workflow

Run it in CaseMark

Upload your documents and get a finished work product in minutes. New accounts get $5 free to run their first skill.

14 minutes with CaseMark

What you'll need

Prime Contract & Modifications
Termination Notice
Financial Records

SOC 2 Type II · HIPAA compliant · $5 free credit

Workflow

Overview

CaseMark's T4C Settlement Proposal skill automates the drafting of Termination for Convenience settlement claims under FAR Part 49. It transforms your contract documents, termination notices, and financial records into a structured, regulation-compliant proposal that justifies contractor costs and calculates a fair settlement amount. The AI handles cost organization, allowability screening, and proposal formatting so your team can focus on strategy and accuracy.

Preparing a T4C settlement proposal is one of the most document-intensive tasks in government contracting. Teams must manually compile cost data across multiple CLINs, verify every expense against FAR Part 31 allowability rules, integrate subcontractor claims, and assemble the proposal in strict regulatory format. This process typically takes weeks of effort and carries significant risk of errors or omissions that can reduce recovery.

CaseMark automates the heavy lifting of T4C settlement proposal preparation. By ingesting your contract documents, termination notice, and financial records, the AI organizes costs by CLIN, screens for FAR Part 31 unallowables, calculates the settlement amount, and produces a complete proposal draft with certifications and attachment indices. Your team reviews and refines rather than building from scratch.

How it works

1. Upload your contract documents, termination notice, and financial records
2. AI analyzes costs against FAR Part 31 allowability standards and structures the proposal
3. Review the draft settlement proposal with flagged gaps and verification notes
4. Export the finalized proposal in your preferred format (DOCX, PDF)

What you get

Header & Contract Identification
Introduction & Background
Cost Breakdown by CLIN/Deliverable
Profit Calculation
Settlement Amount Summary
Subcontractor Claims
Inventory Disposition Schedule
Certifications & Attachment Index

What it handles

FAR Part 49-compliant proposal structure with SF 1435/1436 form selection
Automated cost breakdown organized by CLIN and deliverable
FAR Part 31 allowability screening for all claimed costs
Settlement amount calculation including profit, payments, and credits
Subcontractor settlement integration and inventory disposition analysis
Certification assembly and attachment index generation

Required documents

Prime Contract & Modifications
The original contract, all modifications, pricing schedules, and contract type documentation
.pdf, .docx
Termination Notice
The government's termination for convenience notice including effective date, FAR clause cited, and issuing authority
.pdf, .docx
Financial Records
Cost ledgers, timesheets, vendor invoices, and approved indirect rate documentation supporting claimed costs
.pdf, .docx, .xlsx, .csv

Supporting documents

Subcontractor Data
Subcontractor agreements, sub settlement proposals, and payment records for pass-through claims
.pdf, .docx, .xlsx
Inventory Records
Materials, work-in-progress, and finished component inventories acquired for contract performance
.pdf, .docx, .xlsx
Prior Correspondence
Communications with the Contracting Officer or TCO regarding the termination and settlement process
.pdf, .docx

Why teams use it

Reduce proposal preparation time from weeks to hours with automated cost structuring and FAR compliance checks

Minimize risk of cost disallowance by screening every line item against FAR Part 31 standards

Ensure complete documentation with automated gap detection and verification flagging

Produce professionally formatted proposals that meet TCO expectations and FAR Part 49 requirements

Questions

Does this handle both fixed-price and total-cost-basis proposals?

Yes. CaseMark automatically determines whether to structure your proposal on an SF 1435 (inventory/fixed-price basis) or SF 1436 (total cost basis) depending on your contract type and termination circumstances. You can also manually select the appropriate form.

How does CaseMark ensure FAR Part 31 cost allowability?

CaseMark screens every claimed cost category against FAR Part 31 allowability rules, flagging costs that fall under FAR 31.205 unallowable categories. This helps you catch disallowable expenses before submission and strengthens your proposal's defensibility.

Can it incorporate subcontractor settlement proposals?

Absolutely. CaseMark integrates subcontractor agreements, their settlement proposals, and payment records into the overall proposal. It organizes sub claims as a distinct cost category and ensures proper documentation references.

What if I'm missing some financial documentation?

CaseMark flags any gaps with clear markers so you know exactly what documentation is still needed. This ensures nothing is overlooked and gives you a clear checklist to complete before final submission.

How does the profit calculation work?

CaseMark calculates the proposed settlement amount using the standard formula: allowable costs incurred plus a reasonable profit allocation, minus prior government payments and applicable credits. The profit methodology follows FAR Part 49 guidelines.

Is the output ready to submit to the Contracting Officer?

CaseMark produces a comprehensive, professionally structured draft that follows FAR Part 49 requirements. However, you should review all figures, verify flagged items, and have your contracts team finalize the proposal before formal submission to the TCO.