FCC Termination for Convenience & Default

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 Default

Answer

Termination for Cause

Answer

Mutual Termination

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

The full contract price including unfinished portions

Answer

A settlement including overhead and profit on uncompleted work

Answer

Full termination settlement costs plus 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

5 calendar days

Answer

15 calendar days

Answer

30 calendar days

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

Costs of settling subcontractor termination claims

Answer

Costs incurred in performance of work before termination

Answer

Reasonable profit on work performed before termination

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

Requests a contract modification for additional funding

Answer

Has exceeded the contract's not-to-exceed ceiling

Answer

Fails to submit required monthly progress reports

Question 6

Which FAR clause is typically included in fixed-price contracts to authorize the government to terminate for convenience?

Accepted Answer

FAR 52.249-1

Answer

FAR 52.212-4

Answer

FAR 52.215-2

Answer

FAR 52.203-3

Question 7

When a contractor believes a termination for default was improper and a court or board later agrees, what is the legal effect?

Accepted Answer

The termination is converted to a termination for convenience

Answer

The contract is reinstated and work must resume immediately

Answer

The contractor receives punitive damages from the government

Answer

The contracting officer is held personally liable for the error