Reference dfars 245105d3ib inadequate pmsa results

Reference: DFARS 245.105(d)(3)(i)(B)

Inadequate PMSA Results
The 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 Payment
When 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

Conclusion
Topics 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.

Questions