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    Does adequate mean the business system cannot have significant deficiencies


    Answer

    DFARs SUBPART 242.70 addresses CONTRACTOR BUSINESS SYSTEMS.  Under 242.7000 you can find definitions.  As used in this subpart—— “Acceptable contractor business systems” and “contractor business systems” are defined in the clause at 252.242-7005, Contractor Business Systems.
     
    The clause at 252.242-7005(b) Contractor Business Systems, defines an “Acceptable contractor business systems” as contractor business systems that comply with the terms and conditions of the applicable business system clauses listed in the definition of "contractor business systems" in this clause.  Further, “Contractor business systems” means—(1) Accounting system, if this contract includes the clause at 252.242-7006, Accounting System Administration; (2)  Earned value management system, if this contract includes the clause at 252.234-7002, Earned Value Management System; (3)  Estimating system, if this contract includes the clause at 252.215-7002, Cost Estimating System Requirements; (4)  Material management and accounting system, if this contract includes the clause at 252.242-7004, Material Management and Accounting System; (5)  Property management system, if this contract includes the clause at 252.245-7003, Contractor Property Management System Administration; and (6)  Purchasing system, if this contract includes the clause at 252.244-7001, Contractor Purchasing System Administration.
     
    If a Contractor Business system is found to have a “Significant deficiency "defined in the case of a contractor business system, as 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, there are prescribed actions in the clause the Contracting officer is to take.
     

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