Termination for Convenience & Default Flashcards
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Read the first 7 Termination for Convenience & Default flashcards as text
Under a termination for convenience, what document does the contractor typically submit to the Contracting Officer to resolve incurred costs and fees?
Answer: Termination Settlement Proposal
The contractor submits a Termination Settlement Proposal detailing allowable costs, profit, and fees to settle a convenience termination under FAR 49.206.
How long does a contractor typically have to submit a termination settlement proposal after receiving a termination notice under FAR 49.206-1?
Answer: 1 year
FAR 49.206-1 requires contractors to submit termination settlement proposals within one year of the termination notice, absent a Contracting Officer-approved extension.
Which of the following excuses may allow a contractor to avoid a termination for default due to late delivery?
Answer: Government-caused delay that prevented timely performance
Government-caused delays constitute an excusable delay under FAR 49.401, protecting the contractor from a default termination when the government itself caused the failure.
In a partial termination for convenience, the contractor's obligation to continue performance applies to which portion of the work?
Answer: The unterminated portion of the contract
In a partial termination, the contractor must continue performance on the unterminated portion while winding down only the terminated portion.
A contractor fails to mobilize within the required period after receiving a Notice to Proceed on a construction contract. Which action is MOST appropriate for the Contracting Officer?
Answer: Issue a cure notice allowing at least 10 days to remedy the failure
Before terminating for default, the CO must issue a cure notice giving the contractor at least 10 days to remedy the failure to perform, as required by FAR 49.607.
Under FAR Part 49, which costs are generally NOT recoverable in a termination for convenience settlement?
Answer: Pre-contract costs incurred to prepare bid and proposal
Pre-contract costs such as bid and proposal preparation expenses incurred before contract award are generally not allowable termination settlement costs under FAR 49.206-2.
If termination convenience settlement negotiations fail between the parties, how may the dispute be resolved?
Answer: The Contracting Officer may issue a unilateral determination of the settlement amount
If settlement negotiations fail, the Contracting Officer may issue a unilateral determination of the settlement amount, which the contractor may then appeal under the Contract Disputes Act.