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

Under termination for convenience (FAR 49.2), the contractor recovers costs plus a reasonable profit; under default (FAR 49.4), the contractor may owe the government excess reprocurement costs.

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

The CDA imposes a 6-year statute of limitations running from the date the claim accrued, meaning the date the contractor knew or should have known the basis for the claim.

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

A release of claims is a bilateral agreement in which the contractor agrees that the final payment settles all outstanding issues, releasing the government from further claims.

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

FAR 33.211 requires the contracting officer to issue a final decision within 60 days for claims of $100,000 or less when the contractor requests an expedited 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

Contract closeout requires confirming delivery/acceptance, resolving all financial and property matters, completing audits, and processing the final payment before the file is closed.

CPCM Exam Practice Test

CPCM Exam Practice Test

CPCM Contract Closeout and Termination