Proposed Business System Rule Withdrawn

 Mark Burroughs is a partner at Dixon Hughes Goodman . He has over 20 years of experience in providing auditing and consulting services to government contractors. With little fanfare, the DAR Council has withdrawn the Proposed Business System Rule (79 FR 41172, July 15, 2014).  The proposed rule would have required that contractors subject to the business system rule to incur costs to perform annual self-evaluations of their Accounting, Estimating and Material Management Accounting Systems (MMAS).  In addition, for DOD contractors with contracts awarded based on certified cost or pricing data totaling $50 million or more, the additional cost of a triennial “CPA Audit” of 3 separate business systems would be required.  On top of the proposed requirements the rule would have provided DCAA with … Continue reading