CFCM Dispute Resolution 3 — Questions and Answers
Question 1: Under FAR 33.103, what must a contractor do before filing a formal claim to encourage resolution at the lowest possible level?
- File a protest with the GAO
- Attempt to resolve the issue through good-faith discussions with the CO (Correct answer)
- Obtain legal counsel and submit a demand letter
- Request an independent government cost estimate
Correct answer: Attempt to resolve the issue through good-faith discussions with the CO
FAR 33.103 encourages contractors and COs to attempt informal resolution before a formal claim is submitted.
Question 2: A contractor's claim is denied by the ASBCA. What is the contractor's next appellate option?
- U.S. Supreme Court
- U.S. Court of Appeals for the Federal Circuit (Correct answer)
- U.S. District Court for D.C.
- The Civilian Board of Contract Appeals
Correct answer: U.S. Court of Appeals for the Federal Circuit
Appeals from BCAs go to the U.S. Court of Appeals for the Federal Circuit, which has exclusive jurisdiction over government contract appeals.
Question 3: Which of the following best describes a 'request for equitable adjustment' (REA) in federal contracting?
- A formal CDA claim requiring CO final decision within 60 days
- An informal request to adjust contract price or schedule before filing a formal claim (Correct answer)
- A protest filed with the GAO regarding solicitation terms
- A demand for interest on underpaid invoices
Correct answer: An informal request to adjust contract price or schedule before filing a formal claim
An REA is a pre-claim request to modify contract terms due to changed conditions, which if denied can become a formal CDA claim.
Question 4: Under the CDA, what rate of interest applies to contractor claims from the date the claim is submitted?
- The Federal Funds Rate
- The rate established by the Secretary of the Treasury under the Renegotiation Act (Correct answer)
- The prime rate plus 2%
- The Treasury's prompt payment interest rate
Correct answer: The rate established by the Secretary of the Treasury under the Renegotiation Act
The CDA requires the government to pay interest on contractor claims at the rate set by the Secretary of the Treasury, adjusted semi-annually.
Question 5: A contractor wants to use a mini-trial to resolve a dispute. Which statement best describes a mini-trial?
- A binding arbitration before a panel of retired judges
- A structured settlement process where senior executives hear condensed presentations and negotiate (Correct answer)
- A formal evidentiary hearing before the BCA
- An informal discussion between the CO and contractor's project manager
Correct answer: A structured settlement process where senior executives hear condensed presentations and negotiate
A mini-trial is an ADR technique where each side presents an abbreviated case to senior decision-makers who then attempt to negotiate a settlement.
Question 6: What is the statute of limitations for submitting a CDA claim?
- 1 year from when the claim accrued
- 3 years from contract award
- 6 years from when the claim accrued (Correct answer)
- 10 years from contract completion
Correct answer: 6 years from when the claim accrued
Under the CDA, claims must be submitted within 6 years of the date the claim accrued.
Question 7: Which of the following is a key difference between a dispute under the CDA and a bid protest under the Tucker Act?
- CDA disputes arise post-award from contract performance; protests challenge pre-award or award decisions (Correct answer)
- CDA disputes must go to the GAO; protests go to the BCA
- CDA disputes are not subject to appeal; protests are always appealed
- CDA disputes involve only cost-type contracts; protests involve fixed-price contracts
Correct answer: CDA disputes arise post-award from contract performance; protests challenge pre-award or award decisions
CDA disputes concern contract performance and administration issues, while bid protests challenge the legality of the solicitation or award process.
CFCM Dispute Resolution 3
Under FAR 33.103, what must a contractor do before filing a formal claim to encourage resolution at the lowest possible level?