Contractors Prepare for New Rules on their Business Systems

April 29, 2012

A new defense acquisition regulation finalized in February means the Pentagon can withhold a percentage of payments on designated contracts if a company's business systems — from accounting to purchasing to estimating systems — don't meet government requirements.

The Pentagon says the regulation is meant to ensure the systems' accuracy and prevent fraud, but contractor representatives said many companies are worried about how the rule will actually be used. 

Software firm Compusearch last week convened experts to discuss the new rule:


Callahan said the new regulation aims to ensure that business systems act as "the first line of defense against fraud, waste and abuse in Department of Defense contracts." 

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