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

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.

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

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.

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

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.

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

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.

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

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.

(FCC) Federal Contracting Certification Practice Test

(FCC) Federal Contracting Certification Practice Test

FCC Termination for Convenience & Default 3