CPCM Contract Closeout and Termination

Question 1

Which of the following is the primary difference between termination for default and termination for convenience?

Accepted Answer

Termination for convenience compensates the contractor for costs incurred plus reasonable profit, while default may result in reprocurement cost liability for the contractor

Answer

Termination for default allows the contractor to recover all costs incurred

Answer

Termination for convenience applies only to fixed-price contracts

Answer

Termination for default requires a 30-day cure notice in all circumstances

Question 2

The statute of limitations for a contractor to file a claim under the Contract Disputes Act (CDA) is:

Accepted Answer

6 years from the date the claim accrued

Answer

1 year from the date of the contracting officer's final decision

Answer

3 years from the date of contract completion

Answer

90 days from the date of the dispute

Question 3

What is the purpose of a release of claims in a contract closeout?

Accepted Answer

To document the contractor's waiver of any further claims against the government for contract performance

Answer

To confirm the contractor has paid all subcontractors in full

Answer

To authorize the government to retain withheld payments indefinitely

Answer

To certify that all deliverables were accepted by the government

Question 4

Under the Contract Disputes Act (CDA), a contracting officer's final decision (COFD) must be issued within what timeframe for claims not exceeding $100,000?

Accepted Answer

60 days of receipt of a written request for a final decision

Answer

30 days of receipt of a written request for a final decision

Answer

90 days of receipt of a written request for a final decision

Answer

180 days of receipt of a written request for a final decision

Question 5

Which of the following actions must be completed before a contract can be officially closed out?

Accepted Answer

All deliverables accepted, final invoice paid, and all open actions (audits, property disposal) resolved

Answer

The contractor must submit a bid on the follow-on contract

Answer

The contractor must provide a performance bond for the warranty period

Answer

The government must publish a notice of contract completion in SAM.gov

Question 6

Excess reprocurement costs in a termination for default are:

Accepted Answer

Costs the government incurs to complete the work through another contractor, charged back to the defaulted contractor

Answer

Costs the contractor incurs to complete performance after being cured

Answer

Settlement costs paid to the terminated contractor for work already performed

Answer

Overhead costs the government charges for administering the default process