36. Substantially Corrected Deficiencies

Comment: A respondent recommended that the contracting officer request the auditor or functional pecialist to review the contractor's corrective action when the deficiencies have been "substantially" corrected, and discontinue withholding of payments, release any payments previously withheld, and approve the system upon a contracting officer determination that the contractor has "appropriately" corrected significant deficiencies in lieu of the requirement that the contractor has corrected "all" significant deficiencies.

Response: Significant deficiency, in the case of a contractor business system, means a shortcoming in the system that materially affects the ability of officials of the Department of Defense to rely upon information produced by the system that is needed for management purposes. For this reason, the contracting officer shall discontinue the withholding of payments, release any payments previously withheld, and approve the system only after the contracting officer determines that the contractor has corrected all significant deficiencies as directed by the contracting officer's final determination.