CFCM Terminations 5

Question 1

Under FAR 49.402-8, if a court or board finds that a termination for default was improper, the default is typically converted to:

Accepted Answer

A termination for convenience

Answer

An improper or wrongful default termination is converted to a termination for convenience, entitling the contractor to convenience settlement recovery.

Question 2

Under FAR 49.603, 'settlement by determination' occurs when:

Accepted Answer

The contracting officer unilaterally determines the settlement amount after negotiations fail

Answer

FAR 49.603 provides that when negotiated settlement fails, the CO makes a unilateral determination of the amount owed.

Question 3

Which of the following costs is specifically ALLOWABLE in a termination for convenience settlement under FAR 49.201?

Accepted Answer

Costs of preparing a settlement proposal

Answer

Reasonable costs of preparing the settlement proposal are allowable under FAR 49.201 as a direct cost of the termination.

Question 4

FAR 49.101 states that when a contract is terminated for convenience, the contractor is protected from:

Accepted Answer

Loss due to the termination itself, to the extent practicable

Answer

FAR 49.101 establishes that the government's policy is to protect the contractor from loss resulting from a convenience termination, to the extent practicable.

Question 5

In a termination for default, which party bears the initial burden of proving that a default notice was properly issued?

Accepted Answer

The government

Answer

The government bears the initial burden of proving that the contractor was in default and the termination notice was proper.

(CFCM) Certified Federal Contracts Manager Practice Test

(CFCM) Certified Federal Contracts Manager Practice Test

CFCM Terminations 5