DAR Council issued its final DFARS Business Systems Rule in February of 2012. This rule was established in response to the National Defense Authorization Act which set forth statutory requirements for contractor business systems to ensure they provide timely and reliable information.
The DFARS rule or the Contractor Business System clause found at DFARS 252.242-7005 defines contractor business systems as Accounting, Estimating, Purchasing, EVMS, MMAS, and Property Management. It also defines criteria to be used in determining an acceptable business system and what is considered a significant deficiency. The clause establishes a mechanism that allows the contracting officer to withhold a percentage of payments when the contractor’s business system contains significant deficiencies.
This webinar will include discussions of the following topics:
- The DFARS contract clause which incorporates the Business Systems rule.
- Identify the six business systems and the DFARS references which define each respective system criteria as well as the administrative processes.
- Locate government websites for purposes of obtaining the rule and DoD agency implementing guidelines.
- Utilize the DCAA website to obtain current and future audit policies and audit programs which are relevant to DCAA contract audits of contractor compliance with the DFARS Business Systems rule.
