Contractors May be Required to Have Third Party Audits Performed on their Business Systems | PNWC’s Government Contracting Update

Yesterday we discussed DOE’s decision to withdraw its proposed rules for ensuring contractor business systems are capable of providing timely, reliable information for the management of contracts and programs by contractors and the Department (see Department of Energy Withdraws its Proposed “Business System” Rules). The Department of Defense (DoD) has had similar rules in place through its FAR Supplement (DFARS) for a number of years and although the expectation by now was that DCMA (Defense Contract Management Agency) or DCAA (Defense Contract Audit Agency) would have reviewed or audited those systems for compliance with the standards laid out in the rules, not much has happened. A previous proposal that would require contractors to hire outside auditors to conduct those compliance reviews under the eyes and direction of DCAA were previously withdrawn as unworkable.

Source: PNWC’s Government Contracting Update: Contractors May be Required to Have Third Party Audits Performed on their Business Systems