CPCM Contract Closeout and Termination 3

Question 1

The novation agreement process is required when:

Accepted Answer

A contractor transfers its government contracts to a successor in interest due to a merger or acquisition

Answer

A contractor changes its legal name without a change of ownership

Answer

A subcontractor takes over performance from the prime contractor

Answer

The contracting officer is replaced during contract performance

Question 2

Which of the following is an excusable delay that can prevent a termination for default?

Accepted Answer

Acts of God, acts of the government in its sovereign capacity, fires, floods, or epidemics beyond contractor control

Answer

Contractor underestimated labor hours at bid time

Answer

Contractor's subcontractor performance issues under a fixed-price subcontract

Answer

Contractor failed to order materials early enough to meet the schedule

Question 3

Liquidated damages in a government contract are intended to:

Accepted Answer

Provide a pre-agreed estimate of the government's daily harm from late delivery, avoiding the need to prove actual damages

Answer

Penalize the contractor for poor quality

Answer

Fund government reprocurement costs after a default termination

Answer

Replace the contractor's right to request an equitable adjustment

Question 4

Which of the following best describes the role of the Administrative Contracting Officer (ACO) during contract closeout?

Accepted Answer

Manages post-award contract administration including final rate negotiations, property disposal, and closeout actions

Answer

Issues the original solicitation and evaluates source selection

Answer

Approves small business subcontracting plans before award

Answer

Conducts pre-award surveys of contractor facilities

Question 5

A contractor claiming that the government's actions constituted a breach of contract (rather than a change) is significant because:

Accepted Answer

A breach entitles the contractor to anticipatory profits, while an equitable adjustment only covers costs and profit on work performed

Answer

Breach claims are subject to a shorter statute of limitations than REAs

Answer

Breach claims must be filed with the GAO instead of a board

Answer

Breach claims automatically convert the contract to cost-reimbursement type

Question 6

Upon final payment and contract closeout, any unused obligation authority on a completed contract must be:

Accepted Answer

Deobligated and returned to the applicable appropriation account

Answer

Transferred to another active contract within the same program

Answer

Held in reserve for potential contractor warranty claims

Answer

Reported to the Inspector General for audit review