An Impact Analysis of DFARS Clause 252.242.7005 on Contractor Business System Approval and Disapproval

Abstract

This research attempted to quantify the impact to the government, contractor, and warfighter of the implementation of the Better Buying Power Initiative 3.0, and specifically, Defense Federal Acquisition Regulation Supplement (DFARS) clause 252.242.7005, Contractor Business Systems, which allowed for more stringent government oversight of contractors. Data was collected from Contract Business Analysis Repository (CBAR), which shows the contractor business systems’ approval or disapproval status. A qualitative analysis was then performed using DCMA business system compliance review reports, letters, and contractor data to verify significant deficiencies with business systems that led to system disapproval. This research details the significant deficiencies of this process, given that there were contractors with multiple business system disapprovals who are still actively contracting with the federal government, potentially affecting both government efficiency and warfighter readiness. Finding 1: Analysis of the CBAR data from 2015 and 2019 for the six contractor business systems revealed that once a business system is reapproved there is no method for viewing historical data of past deficiencies. Finding 2: The data analysis revealed the lack of a responsibility tracking tool. Finding 3: The corrective action requests that were analyzed on the disapproved contractor business systems did not impact the urgent fielding of critical equipment.