GAO’s guidance indicates contractor replacement after default should occur within how many days?

Study for the Certified Defense Financial Manager (CDFM) Exam 1. Engage with flashcards and multiple choice questions, with hints and explanations for each query. Prepare confidently for your exam!

Multiple Choice

GAO’s guidance indicates contractor replacement after default should occur within how many days?

Explanation:
When a contractor defaults, the priority is to restore performance quickly and protect the mission. GAO guidance specifies that a replacement contractor should be in place within 100 days after the default is determined. This window strikes a balance between giving enough time to identify a capable successor, complete any novation or assignment steps, and transition work, while still preventing extended gaps that could jeopardize schedule and outcomes. Setting it shorter, like 60 days, risks rushing the selection and missing a suitable fit. Extending beyond 100 days, such as 150 or 200 days, increases the chance of performance delays and cost growth. So, 100 days is the recommended timeframe.

When a contractor defaults, the priority is to restore performance quickly and protect the mission. GAO guidance specifies that a replacement contractor should be in place within 100 days after the default is determined. This window strikes a balance between giving enough time to identify a capable successor, complete any novation or assignment steps, and transition work, while still preventing extended gaps that could jeopardize schedule and outcomes. Setting it shorter, like 60 days, risks rushing the selection and missing a suitable fit. Extending beyond 100 days, such as 150 or 200 days, increases the chance of performance delays and cost growth. So, 100 days is the recommended timeframe.

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