Post-Award Administration Flashcards

Under FAR 32.704, what is an 'limitation of funds' clause and what obligation does it impose on the contractor?

Answer: It notifies the contractor of the amount allotted and prohibits obligating costs beyond that amount without authorization

The Limitation of Funds clause (FAR 52.232-22) caps the contractor's cost obligation to the allotted amount and requires the contractor to notify the government when 75% of funds are expended.

A contractor submits an invoice that the government disputes. Under the Contract Disputes Act, how long does the contractor have to submit a certified claim?

Answer: 6 years from the accrual of the claim

The Contract Disputes Act establishes a 6-year statute of limitations from the date a claim accrues for contractors to submit a certified claim.

What is the threshold above which a contractor claim must be certified under the Contract Disputes Act?

Answer: $100,000

Claims exceeding $100,000 must include a contractor certification that the claim is made in good faith and the amount is accurate under the Contract Disputes Act.

In a time-and-materials (T&M) contract, what does the government risk if adequate surveillance is not maintained?

Answer: The government may overpay since the contractor has no incentive to control costs

T&M contracts shift cost risk to the government because the contractor is paid for hours worked plus materials, creating little incentive to control costs without strong oversight.

Which of the following is an example of an 'excusable delay' that could entitle a contractor to a time extension but NOT additional compensation?

Answer: Acts of God such as floods or earthquakes

Excusable delays under FAR 52.249-14 include unforeseeable causes beyond the contractor's control, such as acts of God, and entitle the contractor to a schedule extension but not additional money.

What is the primary purpose of a 'definitization' process in the context of letter contracts or undefinitized contract actions (UCAs)?

Answer: To establish final contract terms, including price, after work has already begun

Definitization establishes the final price and terms of a UCA or letter contract that was awarded before all terms could be negotiated.

Under FAR 42.15, what rating is assigned in CPARS when a contractor's performance meets contractual requirements and meets most of the government's needs?

Answer: Satisfactory

A 'Satisfactory' CPARS rating indicates the contractor met contractual requirements and the government's needs without significant problems.