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DOD/DARC RIN: 0750-AG58 Publication ID: Spring 2011 
Title: Business Systems--Definition and Administration (DFARS Case 2009-D038) 
Abstract: This interim rule implements the statutory requirements of section 893 of the FY 2011 National Defense Authorization Act (NDAA) and improves the effectiveness of DoD oversight of contractor business systems. Section 893 set forth statutory requirements for the improvement of contractor business systems to ensure that such systems provide timely, reliable information for the management of DoD programs. This interim rule also addresses comments received under the initial proposed rule (published in the Federal Register on January 15, 2010 (75 FR 2457)) and a second proposed rule (published on December 3, 2010 (75 FR 75550)). Based on the comments received, the requirements of the NDAA, and subsequent revisions to the proposed rule, DoD is publishing this interim rule with request for comments. To improve the effectiveness of Defense Contract Management Agency (DCMA) and Defense Contract Audit Agency (DCAA) oversight of contractor business systems, DoD is clarifying the definition and administration of contractor business systems, including accounting systems, estimating systems, purchasing systems, earned value management systems (EVMS), material management and accounting systems (MMAS), and property management systems, and implementing compliance enforcement mechanisms. The need to mitigate the Government's risk when contractors fail to comply with the terms and conditions of their contracts by failing to maintain adequate business systems necessitates this rule. The requirements of the rule will apply to solicitations and contracts that are subject to the Cost Accounting Standards under 41 U.S.C. chapter 15. Since contracts and subcontracts with small business are exempt from CAS requirements, DoD estimates that this rule will have no impact on small business. However, DoD is inviting comments from small business concerns and other interested parties on the expected impact of this rule on small entities. 
Agency: Department of Defense(DOD)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 48 CFR 215    48 CFR 234    48 CFR 242    48 CFR 244    48 CFR 252   
Legal Authority: 41 USC 421   
Legal Deadline:  None
Timetable:
Action Date FR Cite
NPRM  01/15/2010  75 FR 2457   
NPRM Comment Period End  03/16/2010    
Second NPRM  12/03/2010  75 FR 75549   
Comment Period Extended  12/09/2010  75 FR 76692   
Second NPRM Comment Period End  01/10/2011    
Final Action  06/00/2011    
Regulatory Flexibility Analysis Required: Yes  Government Levels Affected: Federal 
Small Entities Affected: Businesses  Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: Yes 
Agency Contact:
Ynette R. Shelkin
Editor, Defense Acquisition Regulations System
Department of Defense
Defense Acquisition Regulations Council
OUSD/AT&L DPAP/DARS, 3060 Defense Pentagon, Room 3B855,
Washington, DC 20301-3060
Phone:571 372-6089
Email: ynette.shelkin@osd.mil