Cherry Bekaert & Holland Government Contractor Service Group pulled together a comprehensive summary of the Final Business Systems Rule pertaining to contractor business systems, which was adopted into law (DFARS Case 2009-D038) on February 24, 2012. The final business system rule is very similar to the interim rule published on May 18, 2011. PVBS has addressed this topic frequently in our newsletter with contributions from CBH and our other accounting firm partners. In this article, which is also available for download as a white paper, the authors focus on key points of interest from the Final Rule touching on where the business systems rule applies, “approved” or “disapproved” rulings, new definition for the phrase “Significant Deficiency,” and how a single deficiency in any one of the six business systems will trigger disapproval of that system and lead to withholding on invoices.
It has becoming clearer what contractors need to be aware of, specifically as it relates to their business systems. PVBS has conducted a number of seminars on this topic to ensure that our customers are confident that they have what they need to be successful supporting the government customer.