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CON 3910 FLASHCARDS (PUBLIC) > Manage Changes > Flashcards

Manage Changes Flashcards

1
Q

What must a contracting officer have to deal with changes in customer requirements?

A

A mechanism to deal with these changes.

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2
Q

What are some uses of unilateral modifications?

A

Unilateral modifications are used to make administrative changes, issue change orders, and make changes authorized by clauses other than a changes clause.

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3
Q

What is a bilateral modification?

A

A bilateral modification is a contract modification that is signed by both the contractor and the contracting officer, used to make negotiated equitable adjustments, definitize letter contracts, and reflect other agreements modifying the terms of contracts.

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4
Q

Who can modify or change contracts on behalf of the Government?

A

Only warranted contracting officers acting within the scope of their authority can modify or change contracts on behalf of the Government.

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5
Q

What are the two types of contract modifications according to FAR 43.103?

A

The two types of contract modifications are bilateral modifications and unilateral modifications.

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6
Q

What must a contracting officer obtain before executing a contract modification that increases funds?

A

A certification of fund availability.

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7
Q

What should the certification of fund availability be based on?

A

The negotiated price or, if the modification is completed before negotiation, the best available estimate of cost.

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8
Q

Under what conditions can a contracting officer execute a contract modification without obtaining a certification of fund availability?

A

When the modifications are conditioned on availability of funds or contain a limitation of cost or funds clause.

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9
Q

What types of changes are permitted under the changes clause?

A

The types of changes permitted are subject to the contract’s contract-type, which can be fixed-price, cost-reimbursement, or time & materials.

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10
Q

What is the purpose of the changes clause in government contracts?

A

The changes clause permits the contracting officer to make unilateral changes in designated areas within the general scope of the contract.

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11
Q

How are change orders documented according to FAR?

A

Change orders are documented by issuing written change orders on Standard Form 30, Amendment of Solicitation/Modification of Contract (SF 30).

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12
Q

In which type of contracts is a contractor not obligated to continue performance after a change order?

A

In cost-reimbursement or incrementally funded contracts, the contractor is not obligated to continue performance or incur costs beyond the limits established in the Limitation of Cost or Limitation of Funds clause.

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13
Q

What must a contractor do when a contracting officer issues a change order?

A

The contractor must continue performance of the contract as changed, except in cost-reimbursement or incrementally funded contracts.

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14
Q

What should contracting officers do regarding equitable adjustments resulting from change orders?

A

Contracting officers should negotiate equitable adjustments resulting from change orders within the shortest practicable time.

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15
Q

What typically results from the change order process?

A

The change order process typically results in two modifications: the modification issuing the change order and the modification issuing the supplemental agreement between the parties.

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16
Q

What is a change order?

A

A change order is issued by a contracting officer directing changes in the general scope of the contract.

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17
Q

Under what circumstances can a contracting officer issue a change order by electronic means without a SF 30?

A

A contracting officer may issue a change order by electronic means without a SF 30 under unusual or urgent circumstances, provided that the message contains substantially the information required by the SF 30 and immediate action is taken to issue the SF 30.

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18
Q

What documents are required when change orders are not forward priced?

A

When change orders are not forward priced, they require a change order and a supplemental agreement reflecting the resulting equitable adjustment in contract terms.

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19
Q

What is the purpose of a supplemental agreement in contract modifications?

A

A supplemental agreement is used to reflect the resulting equitable adjustment in contract terms when an equitable adjustment in the contract price or delivery terms can be agreed upon in advance.

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20
Q

What are some examples of when unilateral modifications are used?

A

Unilateral modifications are used to make administrative changes, issue change orders, make changes authorized by clauses other than a changes clause, and issue termination notices.

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21
Q

What is a unilateral agreement in contract modifications?

A

A unilateral agreement is a contract modification that is signed only by the contracting officer and is used for administrative changes, issuing change orders, making changes authorized by clauses other than a changes clause, and issuing termination notices.

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22
Q

What type of modifications are all changes to commercial contracts under FAR clause 52.212-4?

A

All changes to commercial contracts under FAR clause 52.212-4 are bilateral in type.

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23
Q

What does FAR clause 52.212-4(c) state regarding modifications of commercial contracts?

A

FAR clause 52.212-4(c) states that changes may only be made by written agreement of both parties.

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24
Q

What is the Government’s policy regarding the resolution of contractual issues in controversy?

A

The Government’s policy is to try to resolve all contractual issues in controversy by mutual agreement at the contracting officer’s level.

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25
Q

According to FAR 33.206, how should contractor claims be submitted?

A

Contractor claims shall be submitted in writing to the contracting officer.

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26
Q

What are some provisions included in the Disputes statute?

A

The Disputes statute provides for the payment of interest on contractor claims, certification of contractor claims, and a civil penalty for fraudulent claims or those based on misrepresentation of fact.

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27
Q

What should agencies do before the submission of a claim according to FAR 42.304?

A

Agencies should make reasonable efforts to resolve controversies prior to the submission of a claim.

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28
Q

What does 41 U.S.C. chapter 71 establish regarding claims?

A

41 U.S.C. chapter 71 establishes procedures and requirements for asserting and resolving claims subject to the Disputes statute.

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29
Q

What procedures are agencies encouraged to use to resolve disputes?

A

Agencies are encouraged to use Alternative Dispute Resolution (ADR) procedures to the maximum extent practicable.

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30
Q

According to FAR 33.207, what is the certification requirement for claims exceeding $100,000?

A

Contractors shall certify any claim exceeding $100,000.

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31
Q

What is the time limit for presenting a claim for a decision after the accrual of a claim?

A

The claim must be presented for a decision within 6 years after accrual of a claim, unless the contracting parties agreed to a shorter time period.

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32
Q

Who can execute the certification for a claim exceeding $100,000?

A

The certification may be executed by any person authorized to bind the contractor with respect to the claim.

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33
Q

When does the Government pay interest on a contractor’s claim?

A

The Government pays interest on a contractor’s claim from the date the contracting officer receives the claim or from the date payment would otherwise be due, if that date is later, until the date of payment.

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34
Q

What types of claims are contracting officers not authorized to decide or resolve?

A

Contracting officers are not authorized to decide claims for penalties or forfeitures prescribed by statute or regulation that another Federal agency is authorized to administer, or claims involving fraud.

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35
Q

What authority do contracting officers have according to FAR 33.210?

A

Contracting officers are authorized to decide or resolve all claims arising under or relating to a contract subject to the Disputes statute, within any specific limitations of their warrants.

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36
Q

What procedures can contracting officers use to resolve claims according to FAR 33.214?

A

Contracting officers are authorized to use Alternative Dispute Resolution (ADR) procedures to resolve claims.

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37
Q

What factors should a contracting officer consider when determining the time to issue a decision on a claim?

A

The contracting officer should consider the size and complexity of the claim, the adequacy of the contractor’s supporting data, and any other relevant factors.

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38
Q

What actions must a contracting officer take when a claim cannot be settled by mutual agreement according to FAR 33.211?

A

The contracting officer must review the facts pertinent to the claim, secure assistance from legal and other advisors, coordinate with the contract administration officer or contracting office, and prepare a written decision.

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39
Q

What is the time frame for a contracting officer to issue a decision on claims over $100,000?

A

The contracting officer must issue a decision within 60 days after receiving a certified claim, and if a decision will not be issued within that time, the contractor must be notified of the expected time frame.

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40
Q

What is the time limit for a contracting officer to issue a decision on claims of $100,000 or less?

A

The contracting officer shall issue the decision within 60 days after receiving a written request from the contractor or within a reasonable time after receipt of the claim if no request is made.

41
Q

What must the contracting officer provide to the Agency Board of Contract Appeals during an appeal?

A

The contracting officer shall provide data, documentation, information, and support as may be required by the agency BCA for use on a pending appeal.

42
Q

What does the Disputes statute (41 U.S.C.7103(g)) authorize agencies to require from contractors during an appeal?

A

The Disputes statute authorizes agencies to require a contractor to continue contract performance in accordance with the contracting officer’s decision pending a final resolution of any claim related to the contract.

43
Q

What can contractors do if they disagree with a contracting officer’s decision?

A

Contractors can appeal the contracting officer’s decisions with the applicable Agency Boards of Contract Appeals (BCAs).

44
Q

What are the two types of terminations specifically for commercial contracts?

A

Termination for Convenience and Termination for Cause.

45
Q

What is the primary condition under which a contracting officer shall terminate contracts according to FAR 49.101(b)?

A

The termination must be in the Government’s interest.

46
Q

What are the two main types of terminations for contracts?

A

Termination for the Convenience of the Government and Termination for Default (Noncommercial).

47
Q

What must notices of termination state according to FAR 49.102(a)?

A

Notices of termination must state that the contract is being terminated for the convenience of the Government (or for default), the effective date of termination, the extent of termination, any special instructions, and the steps the contractor should take to minimize the impact on personnel.

48
Q

How should notices of termination be communicated to the contractor according to FAR 49.102(a)?

A

Notices of termination must be done in writing to the contractor.

49
Q

What are the conditions under which a contracting officer shall effect a no-cost settlement instead of issuing a termination notice according to FAR 19.101(b) and FAR 49.109-4?

A

A no-cost settlement shall be effected when it is known that the contractor will accept one, Government property was not furnished, and there are no outstanding payments, debts due the Government, or other contractor obligations.

50
Q

Who is responsible for negotiating any settlement after the contracting officer issues a notice of termination according to FAR 49.101(d)?

A

The termination contracting officer (TCO) is responsible for negotiating any settlement.

51
Q

What methods can be used for the settlement of terminated cost-reimbursement contracts and fixed-price contracts terminated for convenience according to FAR 49.103?

A

Settlement may be completed by negotiated agreement, determination by the terminating contracting officer (TCO), costing-out under vouchers using SF 1034, or a combination of these methods.

52
Q

What should contracting officers do according to FAR 49.103 when settling with a contractor?

A

Contracting officers should negotiate a fair and prompt settlement with the contractor and settle by making a unilateral determination only when it cannot be settled by agreement.

53
Q

What form is used to execute a settlement agreement after a termination settlement has been negotiated?

A

Standard Form 30 (Amendment of Solicitation/Modification of Contract).

54
Q

What must a contractor submit to the Terminating Contracting Officer according to FAR 49.109-7(a)?

A

A settlement proposal within the period required by the termination clause.

55
Q

What is required before executing a settlement agreement according to FAR 49.603?

A

All required reviews must be obtained.

56
Q

What must the contractor do immediately after receiving a notice of termination according to FAR 49.104?

A

The contractor must stop work immediately on the terminated portion of the contract and stop placing subcontracts thereunder.

57
Q

What is required of the TCO if the contractor and TCO cannot agree on a termination settlement?

A

The TCO shall issue a determination consistent with the termination clause after giving the contractor at least 15 days notice to submit written evidence substantiating the amount previously proposed.

58
Q

What should the contractor do regarding subcontracts after receiving a notice of termination?

A

The contractor must terminate all subcontracts related to the terminated portion of the prime contract.

59
Q

What must the contractor do if the termination is partial?

A

The contractor must perform the continued portion of the contract and submit promptly any request for an equitable adjustment of price for the continued portion, supported by evidence of any increase in cost.

60
Q

What happens to settlement proposals of subcontractors after a termination notice?

A

All settlement proposals of subcontractors, except those specifically excepted from the agreement and reserved for separate settlement, must be considered.

61
Q

According to FAR 49.201, what should a settlement compensate the contractor for in the event of a termination for convenience?

A

A settlement should compensate the contractor fairly for the work done and the preparations made for the terminated portions of the contract, including a reasonable allowance for profit.

62
Q

What is the primary objective of negotiating a settlement for contract termination?

A

The primary objective is to negotiate a settlement by agreement, compensating the contractor fairly for the work done and preparations made for the terminated portions of the contract.

63
Q

How is fair compensation determined in contract terminations?

A

Fair compensation is a matter of judgment and cannot be measured exactly; it relies on the use of business judgment rather than strict accounting principles.

64
Q

What actions must a contractor take to protect property in their possession that the Government may acquire an interest in during contract termination?

A

The contractor must take necessary or directed action to protect and preserve the property, deliver it to the Government as directed by the TCO, and promptly notify the TCO in writing of any legal proceedings related to the terminated portion of the contract.

65
Q

Under what condition will the TCO not allow profit according to FAR subpart 49.202?

A

The TCO shall not allow profit if it appears that the contractor would have incurred a loss had the entire contract been completed.

66
Q

What does FAR subpart 49.202 state about profit on preparations made by the contractor for the terminated portion of the contract?

A

The TCO shall allow profit on preparations made and work done by the contractor for the terminated portion of the contract but not on the settlement expenses.

67
Q

What is the preferred method for settlement proposals according to FAR 49.206-2(a)?

A

The use of the inventory basis for settlement proposals is preferred.

68
Q

What happens after the TCO receives the audit report regarding the settlement proposal?

A

The TCO shall proceed with the settlement and execution of a settlement agreement upon receipt of the audit report, if applicable, and the contract audit closing statement covering vouchered costs.

69
Q

What is the time frame for a contractor to submit a final settlement proposal after a termination for convenience under cost-reimbursement contracts?

A

The contractor shall submit a final settlement proposal within 1 year from the effective date of termination, unless the period is extended by the TCO.

70
Q

What costs can the contractor propose in the settlement proposal for a terminated cost-reimbursement contract?

A

The contractor may propose only costs allocable to the terminated portion of the contract, and the settlement proposal must itemize each cost item separately.

71
Q

What must the TCO do with the settlement proposal submitted by the contractor?

A

The TCO shall submit the settlement proposal to the appropriate audit agency for review.

72
Q

What is termination for default according to FAR 49.401?

A

Termination for default is the Government’s contractual right to completely or partially terminate a contract due to the contractor’s actual or anticipated failure to perform its contractual obligations.

73
Q

What happens if a contractor can establish that they were not in default?

A

If the contractor can establish that they were not in default or that the failure to perform is excusable, the termination for default should be changed to a termination for the convenience of the Government.

74
Q

What is required before terminating a contract for default according to FAR 49.607(a)?

A

A ‘Cure Notice’ is required before terminating a contract for default, and it must be ensured that an amount of time equal to or greater than the period of ‘cure’ remains in the contract delivery schedule.

75
Q

What action can a contracting officer take upon expiration of the 10-day cure period if the failure to perform has not been cured?

A

The contracting officer may issue a notice of termination for default.

76
Q

What is the purpose of a ‘Show Cause Notice’ according to FAR 49.607(b)?

A

It calls the contractor’s attention to the contractual liabilities if the contract is terminated for default and requests the contractor to show cause why the contract should not be terminated.

77
Q

What may happen if a contractor fails to present an explanation in response to a Show Cause Notice?

A

Failure to present an explanation may be taken as an admission that no valid explanation exists.

78
Q

What should be done if the time remaining in the contract delivery schedule is not sufficient for a realistic ‘cure’ period of 10 days or more?

A

The ‘Cure Notice’ should not be issued.

79
Q

What should a contracting officer do if termination for default appears appropriate?

A

The contracting officer should, if practicable, notify the contractor in writing of the possibility of the termination.

80
Q

What should the Government decide when considering a default termination according to FAR 49.402-3(a)?

A

The Government shall decide which type of termination action to take, which may include default, convenience, or no-cost cancellation.

81
Q

What does FAR 49.402-3(e)(1) suggest if termination for default appears appropriate?

A

If termination for default appears appropriate, the contracting officer should take necessary actions as outlined in the regulations.

82
Q

What are the consequences for the contractor under a termination for default according to FAR 49.402-2(a)?

A

Under a termination for default, the Government is not liable for the contractor’s costs on undelivered work and is entitled to the repayment of advance and progress payments applicable to that work.

83
Q

What is the Government’s right to terminate a contract for default according to FAR 49.402-1?

A

The Government has the right to terminate the contract completely or partially for default if the contractor fails to make delivery of the supplies or perform the services within the time specified, perform any other provision of the contract, or make progress that endangers performance.

84
Q

What must the contracting officer do if the contractor is a small business firm and a cure notice or show cause notice is issued?

A

The contracting officer shall immediately provide a copy of any cure notice or show cause notice to the contracting office’s small business specialist and the Small Business Administration Regional Office nearest the contractor.

85
Q

What authority does the contracting officer have if termination is in the Government’s interest?

A

The contracting officer may terminate the contract for the convenience of the Government.

86
Q

Under what condition shall a contract not be terminated for default according to FAR 49.402-3?

A

If the contracting officer determines before issuing the termination notice that the failure to perform is excusable, the contract shall not be terminated for default.

87
Q

What actions can a contracting officer take in lieu of termination for default according to FAR 49.402-4?

A

The contracting officer can permit the contractor to continue performance under a revised delivery schedule, allow performance through a subcontract or other arrangement with an acceptable third party, or execute a no-cost termination settlement agreement if the requirement no longer exists and the contractor is not liable for damages.

88
Q

What must a contracting officer do when supplies or services are still required after termination for default in cost-reimbursement contracts according to FAR 49.402-6(a)?

A

The contracting officer shall repurchase the same or similar supplies or services against the contractor’s account as soon as practicable.

89
Q

What happens to the contractor’s allowable costs when a cost-reimbursement contract is terminated for default?

A

The contractor is reimbursed the allowable costs, and an appropriate reduction is made in the total fee, if any.

90
Q

Are the costs of preparing the contractor’s settlement proposal allowable when a cost-reimbursement contract is terminated for default?

A

No, the costs of preparing the contractor’s settlement proposal are not allowable.

91
Q

What principles govern the settlement of a cost-reimbursement contract terminated for default?

A

The settlement is subject to the principles in FAR subparts 49.1 & 49.3.

92
Q

Does a cost-reimbursement contract allow for recovery of excess repurchase costs after termination for default?

A

No, a cost-reimbursement contract does not contain any provision for recovery of excess repurchase costs after termination for default.

93
Q

What is required before terminating a cost-reimbursement contract for default according to FAR 52.249-6?

A

A 10-day notice to the contractor is required before termination for default.

94
Q

What is the purpose of Terminations for Convenience under commercial contracts?

A

Terminations for Convenience allow the Government to terminate the contract for its sole convenience, requiring the Contractor to stop all work and receive payment for work performed prior to termination.

95
Q

What happens if a termination for default is determined to be improper?

A

If a termination for default is deemed improper, it will be considered a termination for convenience.

96
Q

What must a Contractor do immediately upon receiving a notice of Termination for Convenience?

A

The Contractor must immediately stop all work and ensure that all suppliers and subcontractors cease work.

97
Q

What is the Contractor’s liability in the event of a Termination for Cause?

A

The Contractor is liable to the Government for any and all rights and remedies provided by law and will not be compensated for supplies or services not accepted.

98
Q

What are the conditions under which the Government may terminate a contract for cause?

A

The Government may terminate for cause if the Contractor defaults, fails to comply with contract terms, or does not provide adequate assurances of future performance.

99
Q

How is the payment calculated for a Contractor upon Termination for Convenience?

A

The Contractor is paid a percentage of the contract price reflecting the percentage of work performed prior to termination, plus reasonable charges that can be demonstrated as resulting from the termination.

CON 3910 FLASHCARDS (PUBLIC) (14 decks)

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