2.  Resources and Resolution Timing

Comment: DCMA and DCAA are under-resourced to execute the requirements of the rule. DCAA does not have resources to perform timely follow-up audits/system reviews or coordinate in a timely manner with contracting officers to remove payment withholdings, and contracting officers do not have the training to determine if a deficiency makes a system inadequate. There must be accountability within DCAA to conduct timely follow-up audits. Respondents recommended that contractors should be allowed to request follow-up audits when deficiencies are corrected; it should be mandated that DCAA and DCMA perform follow-up audits within 30 days of contractor notification that a deficiency has been corrected; and that the rule should permit qualified third party auditors to provide various accreditations and audits, as is the case with ISO standards or CMMI approvals.

Response: The need to have effective oversight mechanisms is unrelated to resources. This rule does not add additional oversight responsibilities onto DCAA and DCMA; it merely provides provisions to help protect the Government from the contractor's failure to maintain business systems, as is required by the terms and conditions of their contracts. Contracting personnel will make appropriate determinations in accordance with this rule. DCMA and DCAA have been working closely to align their resources and ensure work is complementary. The increased cooperation and coordination between DCAA and DCMA will enable us to employ audit resources where they are needed. Further, the rule has been revised to require the contracting officer to reduce the payment withholding by at least 50 percent if the contracting officer has not made a determination whether the contractor has corrected all significant deficiencies as directed by the contracting officer's final determination, or has not made a determination whether there is a reasonable expectation that the corrective actions have been implemented.