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eQuip!: an Assetworks solution

Corrective Action Requests (CAR) from DCMA:

Why They are Issued and Implications to Contractors

A Government Property Management system is one of the 6 required business systems for government contractors. A shortcoming in the system will have contractual and financial implications for the government contractor.

DFARS 252.242-7005 (FEB 2012)
(d) Significant deficiencies
“…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.”
(e) …the CO will withhold 5% of amounts due from progress payments
and performance-based payments (for the current contract), and
direct the contractor to withhold 5% from its billings on interim cost
vouchers on CR, labor-hour, and T&M (for ALL contracts) until the
CO has determined that the contractor has corrected all significant

This white paper explains what a Corrective Action Request is, the implications for Level I, II, and III CARs, and reveals some real examples of companies that received CARs. We also discuss what contractors can expect in a business system audit.

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