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.