FCC Termination for Convenience & Default 3

Question 1

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

Accepted Answer

Acts of God such as floods or natural disasters

Answer

Contractor's failure to properly manage project cash flow

Answer

Subcontractor insolvency caused by poor business practices

Answer

Late delivery of materials ordered after contract award

Question 2

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

Accepted Answer

3 years after final payment

Answer

1 year after final payment

Answer

5 years after final payment

Answer

Indefinitely, as there is no statutory time limit

Question 3

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

Accepted Answer

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

Answer

The contractor has submitted a request for a schedule extension

Answer

The contractor's past performance has been rated as marginal

Answer

The contractor has submitted a Request for Equitable Adjustment

Question 4

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

Accepted Answer

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

Answer

The contractor retains all GFP as partial compensation for termination costs

Answer

GFP becomes the contractor's property upon execution of the termination settlement

Answer

The contractor may sell GFP and credit the proceeds against the settlement amount

Question 5

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?

Accepted Answer

The termination may be converted to a termination for convenience

Answer

No consequence; default terminations are final and cannot be reversed

Answer

The contractor must still pay excess reprocurement costs despite government fault

Answer

The government pays only administrative fees as compensation

Question 6

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

Accepted Answer

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

Answer

Termination for convenience where no replacement contract is needed

Answer

Partial termination where the contractor continues some remaining work

Answer

Mutual agreement termination requested by both parties

Question 7

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

Accepted Answer

FAR Part 49

Answer

FAR Part 12

Answer

FAR Part 32

Answer

FAR Part 15