FCC Termination for Convenience & Default 1

Question 1

Under FAR Part 49, which type of termination allows the government to stop work on a contract for any reason, even without contractor fault?

Accepted Answer

Termination for Convenience

Answer

Termination for Convenience (FAR Part 49) allows the government to terminate a contract at any time without fault on the contractor's part.

Question 2

When a contract is terminated for default, what is the contractor generally entitled to receive?

Accepted Answer

Compensation only for work completed and accepted before termination

Answer

In a termination for default, the contractor receives payment only for work completed and accepted prior to termination, with no settlement costs or anticipated profits.

Question 3

What is the minimum cure notice period a Contracting Officer must provide before terminating a contract for default due to a contractor's failure to perform?

Accepted Answer

10 calendar days

Answer

FAR 49.607 requires the Contracting Officer to issue a cure notice giving the contractor at least 10 days to cure the failure before a default termination.

Question 4

Under FAR Part 49, which of the following is NOT an allowable cost in a termination for convenience settlement?

Accepted Answer

Anticipated profits on the terminated portion of work

Answer

Anticipated profits on terminated work are not allowable in a termination for convenience settlement; only actual costs and reasonable profit on work performed are recoverable.

Question 5

A 'show cause' notice is typically issued by the Contracting Officer when the contractor:

Accepted Answer

Is in imminent danger of failing to meet a delivery schedule

Answer

A show cause notice is issued when the contractor is in danger of defaulting, requiring the contractor to explain why the contract should not be terminated for default.

(FCC) Federal Contracting Certification Practice Test

(FCC) Federal Contracting Certification Practice Test

FCC Termination for Convenience & Default 1