question
What part of FAR covers terminations?
answer
FAR part 49
question
What clause authorizes terminations?
answer
Termination clause
question
What is defective certification?
answer
A certificate which alters or otherwise deviates from the language in 33.207(c) or which is not executed by a person duly authorized to bind the contractor with respect to the claim.
question
What is Issue of controversy?
answer
A material disagreement between the government and the contractor
question
Issue of controversy
answer
* May result in a claim
* Is all or part of existing claim
* Is all or part of existing claim
question
What is misrepresentation of fact?
answer
A false statement of a substantive fact, or any conduct which leads to the belief of a substantive fact material to proper understanding of the matter in hand, made with intent to deceive or mislead.
question
What is Contract Disputes Act ?
answer
Establishes procedures and requirements for asserting and resolving claims subject to the act
question
What does Contract Disputes Act provide?
answer
1. Payment of interest on contractor claims
2. Certification of contractor claims
3. Civil penalty for contractor claims that are fraudulent or based on a misrepresentation of fact
2. Certification of contractor claims
3. Civil penalty for contractor claims that are fraudulent or based on a misrepresentation of fact
question
When is the Contracts Disputes Act is used?
answer
It applies to express or implied contracts covered by FAR
question
How does a dispute arise?
answer
No matter how well written the contract agreement, or how experienced the project team, there will always be instances when one party will interpret the contract requirement differently.
question
How is the Contract Disputes Act applied?
answer
Contract Disputes Act applies to any express or implied contract covered by the FAR unless
1. The contract is with a foreign government or agency of that government or,
2. An international organization or subsidiary body of that organization if the agency head determines that the application of the act to the contract WOULD NOT be in the public interest
1. The contract is with a foreign government or agency of that government or,
2. An international organization or subsidiary body of that organization if the agency head determines that the application of the act to the contract WOULD NOT be in the public interest
question
What is a claim?
answer
A written demand or written assertion by one of the contracting parties seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of contract terms, or other relief arising under or relating to the contract
question
Who originates the claim?
answer
The contractor
question
Who is the first line of defense that contractor submits their claim to?
answer
The KO has the authority to resolve claims arising under/relating the contract and subject to the Contract Disputes Act
question
Does a contractor have an appeal if they are not happy with the KO's decision?
answer
Yes, both the contractor and the KO can take it to the court system ( court of Federal Claims)
question
How long does KO take to make a decision?
answer
60 days ( can be extended)
question
Who certifies a claim?
answer
The contractor
question
What is the threshold for a contractor to certify a claim?
answer
$ 100 K
question
What is defective certification?
answer
* A defective certification shall not deprive court or an agency BCA or jurisdiction over that claim
* Prior to the entry of a final judgement by a court or a decision by an agency BCA( Board of Contract Appeals),however, the court or agency BCA shall require a defective certification to be corrected.
* Prior to the entry of a final judgement by a court or a decision by an agency BCA( Board of Contract Appeals),however, the court or agency BCA shall require a defective certification to be corrected.
question
Alternative Dispute Resolution
answer
ADR objective is to increase the opportunity for relatively inexpensive and expeditious resolution of issues in controversy.
question
ADR Elements
answer
1. Existence of an issue in controversy
2. Voluntary election by both participating in the ADR process
3. An agreement on alternative procedures to be used in lieu of formal litigation
4. Participation by both parties who have resolution authority
2. Voluntary election by both participating in the ADR process
3. An agreement on alternative procedures to be used in lieu of formal litigation
4. Participation by both parties who have resolution authority
question
Contract closeout
answer
The process of completing and settling the terms of the contract and determining whether the work described in the contract was completed accurately and satisfactorily.
question
Contract closeout allows
answer
1. De obligating excess funds
2. Identifies need for additional funds
3. Allows affected activities to concentrate on current and future requirements.
2. Identifies need for additional funds
3. Allows affected activities to concentrate on current and future requirements.
question
What form is used to close out a contract
answer
DD 1597
question
What are the two types of terminations?
answer
1. Termination for conveince
2. Termination for default
2. Termination for default
question
What must the government issue before terminating contract
answer
Cure Notice
question
How long the KO must wait after cure notice is given and before termination
answer
10 days
question
Does a cure notice have to be writing?
answer
yes
question
Termination by convenience
answer
The exercise of the Government's right to completely or partially terminate performance of work under a contract when it is in the Government's interest.
question
Termination for Default
answer
the exercise of the Government's right to completely or partially terminate a contract because of the contractor's actual or anticipated failure to perform its contractual obligations
question
Termination for cause
answer
the exercise of the Government's right to terminate a contract because of the contractor's failure to deliver goods / services or otherwise breaches a COMMERCIAL contract
question
settlement agreement
answer
A written agreement in the form of a contract modification settling all or a severable portion of a settlement proposal
question
The Government's right to terminate for default
answer
If the contractor fails to:
1. Make delivery of the supplies or perform the services within the time specified in the contract
2. Perform any other provision of the contract
3. Make progress and that failure endangers performance of the contract
1. Make delivery of the supplies or perform the services within the time specified in the contract
2. Perform any other provision of the contract
3. Make progress and that failure endangers performance of the contract
question
Reasons to terminate for convenience
answer
1. Changes in situations and technology
2. Lack of funds
3. Termination is in the best interest of the government
2. Lack of funds
3. Termination is in the best interest of the government
question
Contractor's right under a termination for convenience
answer
The contractor may recover
1. Its performance costs incurred to the date of termination
2. Certain costs that continue after the date of termination
3. Termination expenses
4. Profit or fee for the work performed
1. Its performance costs incurred to the date of termination
2. Certain costs that continue after the date of termination
3. Termination expenses
4. Profit or fee for the work performed
question
Is the termination for convenience the contractor's fault?
answer
NO
question
Timely closeout allows government to
answer
1. Deobligate the funds
2. Identify the need for additional funds
3. Concentrate on current and future requirements
2. Identify the need for additional funds
3. Concentrate on current and future requirements
question
Contract is physically completed when
answer
1. The contractor has completed required deliveries and the government has INSPECTED and ACCEPTED
2. The contractor has performed all services and the government has accepted
3. All option provisions have expired
4. The government has given the contractor a notice of complete contract termination
2. The contractor has performed all services and the government has accepted
3. All option provisions have expired
4. The government has given the contractor a notice of complete contract termination
question
Closeout checklist
answer
Government:
1. Accepts final delivery
2. Puts final DD250 or SF 1449
3. Validation of the quantity ordered and delivered
4. Reconciliation between ordered and delivered items
5. Initial review and removal of excess funds
6. Initiate DD Form 1597 and accomplish actions
1. Accepts final delivery
2. Puts final DD250 or SF 1449
3. Validation of the quantity ordered and delivered
4. Reconciliation between ordered and delivered items
5. Initial review and removal of excess funds
6. Initiate DD Form 1597 and accomplish actions
question
DD250
answer
Material Inspection and Receiving Report
question
DD1597
answer
Contract closeout checklist
question
DD1594
answer
Contract completion statement
question
Contract closeout prohibited Items
answer
1. Unresolved value engineering issues
2. Final indirect cost rates
3. Questionable costs
4. Termination statement
5. Outstanding claims or disputes
2. Final indirect cost rates
3. Questionable costs
4. Termination statement
5. Outstanding claims or disputes