CFCM Dispute Resolution 5 — Questions and Answers
Question 1: Under the Equal Access to Justice Act (EAJA), when can a contractor recover attorney fees from the federal government after winning a CDA dispute?
- Whenever the contractor wins, regardless of circumstances
- When the government's position was not substantially justified and the contractor meets size/net worth thresholds (Correct answer)
- Only when the government committed fraud
- Only when the dispute involved a construction contract
Correct answer: When the government's position was not substantially justified and the contractor meets size/net worth thresholds
EAJA allows eligible small businesses and individuals to recover attorney fees when the government's litigation position lacked substantial justification.
Question 2: A contractor discovers a differing site condition during construction. Which FAR clause governs this type of dispute?
- FAR 52.249-14 (Excusable Delays)
- FAR 52.236-2 (Differing Site Conditions) (Correct answer)
- FAR 52.243-1 (Changes — Fixed Price)
- FAR 52.233-1 (Disputes)
Correct answer: FAR 52.236-2 (Differing Site Conditions)
FAR 52.236-2 covers differing site conditions, allowing contractors to claim equitable adjustments when actual conditions differ materially from those indicated in the contract.
Question 3: What is the effect of a 'release of claims' clause in a contract modification on a contractor's future dispute rights?
- It has no legal effect on unrelated future claims
- It bars the contractor from asserting claims that arose before or during the modification's scope (Correct answer)
- It extends the CDA statute of limitations by one year
- It transfers jurisdiction to the Court of Federal Claims automatically
Correct answer: It bars the contractor from asserting claims that arose before or during the modification's scope
A release of claims provision in a bilateral modification typically extinguishes all claims within its scope that existed at the time of signing.
Question 4: Which of the following best describes the role of the 'Disputes' clause (FAR 52.233-1) in a federal contract?
- It waives the contractor's right to sue the government
- It requires the contractor to continue performance pending dispute resolution and establishes the CDA framework (Correct answer)
- It mandates binding arbitration for all disputes over $1 million
- It limits disputes to those involving cost-reimbursement contracts only
Correct answer: It requires the contractor to continue performance pending dispute resolution and establishes the CDA framework
FAR 52.233-1 requires the contractor to proceed diligently with contract performance while a dispute is pending and establishes the CDA claims process.
Question 5: A contractor appeals to the Court of Federal Claims instead of a BCA. What is the time limit for this filing after receiving a CO's final decision?
- 60 days
- 90 days
- 12 months (Correct answer)
- 6 years
Correct answer: 12 months
A contractor has 12 months from receipt of the CO's final decision to file suit in the U.S. Court of Federal Claims.
Question 6: What is 'claim accrual' for purposes of the CDA's 6-year statute of limitations?
- The date the contract was awarded
- The date when all events fixing liability were known or should have been known (Correct answer)
- The date the contractor submitted an invoice
- The date the contracting officer issued a cure notice
Correct answer: The date when all events fixing liability were known or should have been known
A CDA claim accrues when all events fixing liability occurred and were or should have been known to the contractor, starting the 6-year clock.
Question 7: Which of the following statements about government counterclaims under the CDA is correct?
- The government cannot file counterclaims; it can only deny contractor claims
- The government may assert counterclaims against contractors, subject to the same CDA procedures (Correct answer)
- Government counterclaims must be filed in federal district court only
- Government counterclaims are exempt from the 6-year statute of limitations
Correct answer: The government may assert counterclaims against contractors, subject to the same CDA procedures
The CDA applies symmetrically — the government may also file claims against contractors, and the same procedural framework and limitations apply.
CFCM Dispute Resolution 5
Under the Equal Access to Justice Act (EAJA), when can a contractor recover attorney fees from the federal government after winning a CDA dispute?