Implications of the Contractor Business Systems Rule

Wednesday, May 25, 2011

In May 2011, the U.S. Department of Defense (DOD) implemented a significant change to the Defense Federal Acquisition Regulation Supplement (DFARS) entitled, Contractor Business Systems Interim Rule.  This new DFARS rule requires all defense contractors who have more than $50 million in prime contracts and subcontracts that are cost-reimbursement, incentive, time-and-materials, and/or labor hour contract types to comply with a new Contractor Business Systems set of requirements. Navigant discusses the Contractor Business Systems Interim Rule and its impact on defense contractors.