DFARS 252.242-7005 Contractor Business System - Timeline

Summary of Timeline

Contracting Officer Communicates Approval or Disapproval

• Within 10 days of receiving functional specialist report. The Contracting Officer must describe the significant deficiency in sufficient detail to allow the contractor to understand the deficiency.

• The contractor has 30 days to respond to the initial determination.

Contracting Officer Issues Final Written Determination

• Contracting Officer must issue a final written determination of system adequacy within 30 days of receipt of contractors response. Contract payment withholdings would begin here.

• The Contracting Officer must obtain the review of the Contractor Business Systems Review Panel if the decision would be contrary to a DCAA audit recommendation.

• The Contractor has 45 days to respond to the final determination of system adequacy. During this time, contractors can correct deficiencies or submit a corrective action plan.

• Contracting Officer has 15 days to review the corrective action plan or corrective actions.

• Once a final determination has been issued, the contractor may dispute the final determination that a significant deficiency exists by submitting a Contract Disputes Act claim.

Corrected Deficiencies

• When the contractor notifies the Contracting Officer that significant deficiencies have been corrected, the Contracting Officer will

• • Request a verification from an auditor/functional specialist, and

• • Make a determination of correction

• The amount withheld will be released once all deficiencies have been corrected and systems have been deemed approved.