Termination for Convenience & Default Flashcards

Which of the following is a valid 'excusable delay' under FAR 49.401 that can prevent a termination for default?

Answer: Acts of God such as floods or natural disasters

Acts of God such as floods, fires, and hurricanes are listed as excusable delays under FAR 49.401, shielding the contractor from default for circumstances beyond their control.

After a termination for convenience, for how long does the government retain the right to audit the contractor's termination settlement proposal records?

Answer: 3 years after final payment

Under FAR 4.703, the government has the right to audit contract records for 3 years after final payment, which applies to termination settlement records as well.

In which situation would a Contracting Officer MOST likely issue a show cause notice rather than a cure notice?

Answer: There is insufficient time remaining before the delivery date for the contractor to cure the failure

A show cause notice is appropriate when the delivery date has passed or there is insufficient time for cure, demanding the contractor explain why default action should not be taken.

What happens to government-furnished property (GFP) when a contract is terminated for convenience?

Answer: The contractor must return GFP or otherwise account for it per contract terms

Upon termination, the contractor is required to return government-furnished property or otherwise account for it in accordance with the contract terms and FAR Part 49.

Under FAR 49.402-3, what is the legal consequence if the government terminates a contract for default but the contractor's failure was caused by the government's own actions?

Answer: The termination may be converted to a termination for convenience

If the government's own actions caused the contractor's failure, the default termination is improper and must be converted to a termination for convenience, entitling the contractor to a convenience settlement.

Excess reprocurement costs assessed against a defaulted contractor under FAR 49.402-6 arise in which specific scenario?

Answer: Termination for default where the government must re-procure the same supplies or services at a higher cost

Under FAR 49.402-6, when a contract is terminated for default and the government must re-procure, the excess costs above the original contract price may be charged to the defaulting contractor.

Which FAR part primarily governs all contract termination procedures, including both termination for convenience and termination for default?

Answer: FAR Part 49

FAR Part 49 (Termination of Contracts) is the primary regulatory authority governing all procedures for both termination for convenience and termination for default.