FAC Claims Processing & Investigation 2 — Questions and Answers
Question 1: Under the Contract Disputes Act (CDA), what is the statute of limitations for submitting a contractor claim?
- 1 year from accrual
- 6 years from accrual (Correct answer)
- 3 years from accrual
- No time limit applies
Correct answer: 6 years from accrual
The CDA requires that contractor claims be submitted within 6 years after the claim accrues.
Question 2: A contracting officer issues a final decision on a claim. Within how many days must a contractor appeal to the Armed Services Board of Contract Appeals (ASBCA)?
- 30 days
- 60 days
- 90 days (Correct answer)
- 120 days
Correct answer: 90 days
A contractor must appeal a contracting officer's final decision to a Board of Contract Appeals within 90 days of receipt.
Question 3: Which FAR clause is mandatory in all contracts subject to the Contract Disputes Act and governs the disputes process?
- FAR 52.233-1, Disputes (Correct answer)
- FAR 52.243-1, Changes
- FAR 52.249-8, Default
- FAR 52.232-5, Payments
Correct answer: FAR 52.233-1, Disputes
FAR 52.233-1, Disputes, is the mandatory clause that establishes the disputes process under the CDA.
Question 4: A contractor submits a claim for $175,000. The contracting officer believes the amount is inflated. What must the CO do before issuing a final decision?
- Immediately deny the claim in writing
- Request certified cost or pricing data
- Investigate and issue a final decision within 60 days (Correct answer)
- Refer the claim to the Inspector General
Correct answer: Investigate and issue a final decision within 60 days
For claims over $100,000, the CO must issue a final decision within 60 days or notify the contractor of a new decision date.
Question 5: What distinguishes a 'claim' from a 'request for equitable adjustment' (REA) under the CDA?
- Claims require CO certification; REAs do not
- A claim is a written demand seeking a CO final decision as a matter of right (Correct answer)
- REAs are filed with the Board of Contract Appeals directly
- Claims must be under $100,000 to qualify
Correct answer: A claim is a written demand seeking a CO final decision as a matter of right
A claim is a written demand seeking a contracting officer's final decision as a matter of right, while an REA is a request for voluntary adjustment before a claim is filed.
Question 6: Interest on contractor claims under the CDA begins accruing on which date?
- Date the CO issues a final decision
- Date the claim is submitted to the CO (Correct answer)
- Date the contractor files an appeal
- Date the contract was awarded
Correct answer: Date the claim is submitted to the CO
Under the CDA, interest on contractor claims accrues from the date the claim is submitted to the contracting officer.
Question 7: A contractor submits a claim exceeding $100,000 without a certification. What is the legal effect?
- The claim is void and cannot be refiled
- The CO must dismiss the claim immediately
- The claim is defective but can be corrected without losing the original submission date (Correct answer)
- The contractor must reduce the claim to under $100,000
Correct answer: The claim is defective but can be corrected without losing the original submission date
A defective certification does not deprive a Board or Court of jurisdiction; the contractor may correct it and the original submission date is preserved.
FAC Claims Processing & Investigation 2
Under the Contract Disputes Act (CDA), what is the statute of limitations for submitting a contractor claim?