History of the DFARS Business System Rule

History of the Rule

Section 893 of the National Defense Authorization Act for Fiscal 2011 created an initiative to improve Business Systems and to identify officials at the Department of Defense (DOD)who are responsible for ensuring that US Governement contractors performing on US Federal contracts have adequate business systems. Top DoD officials need to ensure that their are individuals responsible for approving or disapproving a contractors business system, and thereby determing wheter or not a potential contractor providing services to the US Government is responsible and has the systems in place to protect the US Government's interest.