DFARS 252.242-7005 Contractor Business System - Timeline

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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.