July 2016 - page 13

Back in 2014, not to be outdone by the Defense Department, the Department of Energy proposed its own Contractor Business System rules (see 79 FR 18415). These proposed rules were similar in scope to those being considered and ultimately adopted by DoD. They covered five of DoD’s six business systems: accounting, estimating, purchasing, EVMS and property management. DOE’s contractor business systems did not cover MMAS (Material Management & Accounting Systems), perhaps because DOE’s contractors are not typically in the manufacturing business. The proposed rules included compliance enforcement mechanisms that would, like the DoD rules, allow contracting officers to withhold a percentage of payments when one or more of the business systems contained significant deficiencies.

Source: PNWC’s Government Contracting Update: Department of Energy Withdraws its Proposed “Business System” Rules

The Department of Defense Office of Inspector General recently announced that it is initiating a new peer review on the quality and adequacy of DCAA (Defense Contract Audit Agency’s) audit work. The last quality control report was issued back in August 2014 and covered DCAA’s system of quality controls in effect as of June 30, 2013. Federal audit organizations can receive a rating of pass, pass with deficiencies, or fail. DCAA received a rating of “pass with deficiencies”. The deficiencies related to lack of sufficient documentation where the peer review team could not discern the judgment and conclusions drawn by DCAA auditors. Additionally there were instances where the documentation did not support information in the audit report.

Source: PNWC’s Government Contracting Update: DCAA to Undergo Another Peer Review