Operating Status
FULLY OPERATIONAL
OPERATING STATUS
The relevant references for the DoD are DFARS 245.105; DFARS 252.245-7003; and DFARS PGI 245.105. Specifically,
The contractor has 45 days of receipt of the final determination to either correct the significant deficiencies or submit an acceptable corrective action plan showing milestones and actions to eliminate the significant deficiencies (DFARS 252.245-7003(e)).
The contracting officer, with the assistance of the auditor, shall monitor the contractor's progress in correcting deficiencies. If the contractor fails to make adequate progress, the contracting officer shall take whatever action is necessary to ensure that the contractor corrects the deficiencies (DFARS PGI 245.105(d)(3)(ii)(A)). There is no specified timeframe for these activities, but it is in the Government’s best interest to promptly notify the contractor that its CAP would not make adequate progress to correct the deficiencies and take appropriate actions.
DFARS 242.7000 and DFARS 252.242-7005, Contractor Business Systems contains additional guidance if the contract is CAS covered with respect to withholdings as they relate to the contractor submitting an acceptable corrective action plan and maintaining milestones.
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