New DFARS Clause on Business Systems Authorizes Government to Withhold Payments

On May 18, 2011, the Department of Defense issued an interim rule that authorizes contracting officers to temporarily withhold payments from contractors whose business systems it deems inadequate. 76 Fed. Reg. 28,856. The rule applies to all contracts covered by the Cost Accounting Standards ("CAS"); small businesses are therefore exempt.

Read a summary of the New DFARS Clause >>