Certified Research Administrator Practice Exam

Which two clauses are critical termination clauses of the general provisions of a federal contract?

1. Disputes and Changes

2. Default and Convenience

3. Default and Stop Work order

4. Stop Work order and failure to conform

The correct answer is: Default and Convenience

The critical termination clauses of the general provisions of a federal contract are "Default" and "Convenience." The "Default" clause allows the government to terminate the contract if the contractor fails to comply with contract terms or conditions. This is vital as it protects the government's interests by ensuring that projects can proceed smoothly without being hampered by underperformance or non-compliance. The "Convenience" clause, on the other hand, permits the government to terminate the contract for its own reasons, unrelated to contractor performance. This provides flexibility for the government to discontinue contracts that may no longer align with their needs or priorities without needing to provide cause. Both of these clauses are fundamental because they establish the framework within which either party can exit the contract, ensuring that the government has necessary recourse to mitigate risks associated with contractor non-performance and to adjust its commitments based on changing circumstances.