Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

DoD scales back plan to restrict payments to some contractors

By Sean Reilly at Federal Times

Under a barrage of contractor criticism, the Defense Department has softened a plan to hold back contract payments as a way to prod companies to fix problems in their accounting and other business systems.

In a proposed rule released in January, DoD had sought authority to withhold 10 percent of payments if a particular business system was found to be deficient. Under a new proposal published this month in the Federal Register, that amount is cut to 5 percent and for small businesses would be limited to 2 percent. If a deficiency is considered high risk, the maximum that could withheld would be capped at 20 percent, down from 100 percent in the original proposal. And in response to complaints that the original draft was overly subjective, officials spell out compliance criteria more clearly.       Please see the  original in it’s entirety here

December 15, 2010 Posted by | Civilian Contractors, Contractor Oversight, Department of Defense, Pentagon, Private Military Contractors, Wartime Contracting | , , , , , , | Leave a comment