DoD Issuing New DFARS Business Systems Compliance Rule

The Department of Defense is issuing a proposed rule amending the Defense Federal Acquisition Regulation Supplement addressing contractor accountability for adequate business systems.

The rule, which appears in today’s advance Federal Register, would allow a contractor to demonstrate compliance with DFARS system criteria for accounting systems, estimating systems, and material management and accounting systems, through self-evaluations and audits by independent Certified Public Accountants selected by the contractor. Government auditors would perform overviews of the results of the self-evaluations and audits.

DoD is issuing the rule in response to the November 3, 2011, Government Accountability Office report, Defense Contract Management Agency: Amid Ongoing Efforts to Rebuild Capacity, Several Factors Present Challenges in Meeting Its Mission. In response to the report, DoD agreed to consider alternative approaches to audit contractor business systems.

About William Van Huis

Bill Van Huis is a Senior Writer/Analyst for Wolters Kluwer Law & Business who tracks and analyzes new regulations impacting federal government contracting. He also follows court decisions involving bid protests and contract disputes. You can find his work in WK publications like Government Contract Reports and the FAR and DFARS Matrix Tools. Bill is a Certified Professional Contracts Manager, and he has a law degree from Southern Illinois University, where he graduated summa cum laude. Prior to joining WK, Bill worked both inside and outside state and local government in the areas of procurement and municipal finance. Bill also worked as a staff attorney for the Illinois Supreme Court.
This entry was posted in Compliance, DFARS, Regulations and tagged , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published.