Inadequate PMSA ResultsThe Contracting Officer and PA must be Aware of the Following:The withholding of payment option is only for contracts with the DFARS 252.242-7005 Contractor Business Systems clause. In order to apply, it must be included in a “covered contract” as defined in DFARS 242.7000(a) AND include DFARS 252.245-7003 Contractor Property Management System Administration.A “covered contract” is a “contract that is subject to Cost Accounting Standards under 41 U.S.C. chapter 15, as implemented in regulations found at 48 CFR 9903.201-1.” See: DFARS 242.7000 Cost Accounting Standards are mandatory on all negotiated contracts in excess of $700,000, provided that, at the time of award, the contractor is performing any CAS-covered contracts valued at $7.5 million or greater.
Withholding PaymentWhen to Withhold Payment:The withhold of payment is not one of the remedies that is available the Contracting Officer if a contract does not meet the above requirements or other exemptions listed in 48 CFR 9903.201-1 Reference: FAR 45.105(c), 48 CFR 9903.201-1
ConclusionTopics to Presented in this Lesson:Submission of a Corrective Action Plan. Acceptability of the Corrective Action Plan. Notification of Contractor for adequacy of CAP.Re-Analysis of Contractors PMS (Inadequate Outcomes)Re-Analysis findings.When to withhold payments to the contractor due to an unacceptable PMS.