Contract Closeout and Termination Flashcards

Which board or court has jurisdiction over contractor appeals of contracting officer final decisions under the Contract Disputes Act?

Answer: Armed Services Board of Contract Appeals (ASBCA), Civilian Board of Contract Appeals (CBCA), or U.S. Court of Federal Claims

Under the CDA, contractors may appeal to the appropriate Board of Contract Appeals (ASBCA or CBCA) or directly to the U.S. Court of Federal Claims within 12 months of the COFD.

A convenience termination settlement proposal should include which of the following?

Answer: Costs incurred, settlement expenses, and a reasonable profit on work performed prior to termination

A termination for convenience settlement covers allowable costs incurred before termination plus settlement expenses and a fair profit on the work done, but not anticipated profits on unperformed work.

The quick-closeout procedure under FAR 42.708 is used when:

Answer: Final audit of indirect rates is not yet complete but negotiating a rate now is cost-effective

Quick-closeout allows the ACO to negotiate final indirect rates directly with the contractor when the cost of waiting for a DCAA audit outweighs the benefit, expediting file closure.

In a termination for default, what must the government prove to sustain the default?

Answer: The contractor failed to perform a material contract requirement and the default was not excusable

To sustain a default termination, the government must show a material failure to perform and that the failure was not caused by excusable delays under FAR 49.401.

What happens to a default termination that the government later determines was improper?

Answer: It is automatically converted to a termination for convenience

An improper default termination is converted to a termination for convenience by operation of law, entitling the contractor to a convenience settlement rather than default recovery.

Records retention requirements for closed government contracts generally require files to be kept for:

Answer: 6 years and 3 months after final payment for most contract files

FAR 4.805 requires most contract files to be retained for 6 years and 3 months after final payment, ensuring availability for audits and litigation.