CFCM Terminations 3

Question 1

After a termination for convenience, allowable settlement costs under FAR 49.201 generally exclude:

Accepted Answer

Unearned anticipated profits on the terminated portion

Answer

FAR 49.201 explicitly excludes unearned anticipated profits and unrealized income from allowable termination settlement costs.

Question 2

A 'no-cost settlement' in a termination for convenience is appropriate when:

Accepted Answer

The contractor has incurred no costs and waives all claims

Answer

A no-cost settlement is used when the contractor has incurred no costs, or the costs are offset by the value of items retained, and the contractor agrees.

Question 3

Under FAR 49.402-6, a termination for default may be converted to a termination for convenience if:

Accepted Answer

It is determined the default was excusable

Answer

FAR 49.402-6 allows conversion to convenience termination when it is found that the contractor's failure was excusable.

Question 4

Which of the following is NOT considered an excusable delay under FAR 52.249-8?

Accepted Answer

Subcontractor insolvency caused by the subcontractor's own mismanagement

Answer

Subcontractor financial difficulties caused by the subcontractor's own actions are not excusable delays; the prime contractor remains liable.

Question 5

The FAR 49.108 requirement that the prime contractor flow down termination clauses to subcontractors is intended to:

Accepted Answer

Enable the prime to settle with subcontractors upon government termination

Answer

Flowing down termination clauses ensures the prime can settle subcontract claims using the same framework if the prime contract is terminated.

(CFCM) Certified Federal Contracts Manager Practice Test

(CFCM) Certified Federal Contracts Manager Practice Test

CFCM Terminations 3