13.  DCAA/Functional Specialist Consultation

Comment: It is unclear what is meant by "consultation with the auditor or functional specialist" in terms of a contracting officer's determination to discontinue withholding payments prior to audit verification. The language in DFARS 242.70X1 and 252.242-7XXX should explicitly state that the contracting officer may discontinue withholding payments without the need to wait for a final audit report from DCAA.

Response: The contracting officer is the only person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. However, when specialized expertise is required, the interim rule requires contracting officers to consult with auditors and other individuals with specialized experience, as necessary, to ensure a full understanding of issues. The interim rule explicitly states that prior to the receipt of verification, the contracting officer may discontinue withholding payments pending receipt of verification, and release any payments previously withheld, if the contractor submits evidence that the deficiencies have been corrected, and the contracting officer, in consultation with the auditor or functional specialist, determines that there is a reasonable expectation that the corrective actions have been implemented and that the deficiencies no longer affect materially the ability of the Government to rely upon information produced by the system.