CFCM Dispute Resolution 2 — Questions and Answers
Question 1: Under the Contract Disputes Act (CDA), what is the maximum dollar threshold for a contractor to request a contracting officer's final decision on a claim without the CO being required to issue it within a specific timeframe?
- $50,000
- $100,000 (Correct answer)
- $150,000
- $250,000
Correct answer: $100,000
For claims of $100,000 or less, the CO must issue a final decision within 60 days of receiving the written request.
Question 2: A contractor disagrees with a contracting officer's final decision and wants to appeal. Which of the following is NOT a valid forum for appealing a CDA claim?
- Armed Services Board of Contract Appeals
- Civilian Board of Contract Appeals
- U.S. Court of Federal Claims
- U.S. District Court (Correct answer)
Correct answer: U.S. District Court
Under the CDA, contractors may appeal to an agency BCA or directly to the U.S. Court of Federal Claims, but not to U.S. District Courts.
Question 3: What is the time limit for a contractor to appeal a contracting officer's final decision to a Board of Contract Appeals (BCA)?
- 30 days
- 60 days
- 90 days (Correct answer)
- 1 year
Correct answer: 90 days
A contractor must appeal a CO's final decision to a BCA within 90 days of receiving the decision.
Question 4: What is the primary purpose of Alternative Dispute Resolution (ADR) in federal contracting?
- To give the government a procedural advantage in disputes
- To resolve disputes faster and at lower cost than formal litigation (Correct answer)
- To eliminate the contractor's right to appeal
- To transfer jurisdiction from BCAs to federal district courts
Correct answer: To resolve disputes faster and at lower cost than formal litigation
ADR techniques such as mediation and mini-trials are used to settle disputes more efficiently than formal adjudication.
Question 5: When a contractor submits a claim exceeding $100,000, what must accompany the claim under the CDA?
- A performance bond
- A signed certification that the claim is made in good faith (Correct answer)
- A list of witnesses
- A waiver of attorney fees
Correct answer: A signed certification that the claim is made in good faith
Claims over $100,000 must be certified by the contractor as made in good faith and that supporting data are accurate and complete.
Question 6: If a contracting officer fails to issue a final decision within the required timeframe on a claim over $100,000, what is the legal consequence?
- The claim is automatically granted
- The contractor may treat the inaction as a deemed denial and appeal (Correct answer)
- The claim is dismissed
- The contractor loses appeal rights
Correct answer: The contractor may treat the inaction as a deemed denial and appeal
A CO's failure to issue a timely final decision is treated as a deemed denial, allowing the contractor to proceed with an appeal.
Question 7: Which ADR technique involves a neutral third party who facilitates negotiation but does not impose a decision?
- Arbitration
- Mediation (Correct answer)
- Mini-trial
- Fact-finding
Correct answer: Mediation
In mediation, a neutral facilitator helps parties reach a voluntary settlement without rendering a binding decision.
CFCM Dispute Resolution 2
Under the Contract Disputes Act (CDA), what is the maximum dollar threshold for a contractor to request a contracting officer's final decision on a claim without the CO being required to issue it within a specific timeframe?