ACO Approval of Contractor Business Systems, With Teeth
Client Alert | 1 min read | 01.22.10
DoD has proposed important amendments to the Defense Federal Acquisition Regulations (75 Fed. Reg. 2457, Jan. 15, 2010) that would reinforce the authority of the administrative contracting officer (“ACO”) as the final decision maker about the adequacy of contractor "business systems," permitting the ACO, after considering the contractor's response to recommendations from DCAA, to withhold a percentage of interim payments, progress payments, and performance-based payments upon the ACO's “final determination” that deficiencies exist in one or more of a contractor's “business systems,” which would include accounting systems, estimating systems, purchasing systems, earned value management systems, material management and accounting systems, and property management systems. While the initial withholding for deficiencies in a single business system would be 10%, the ACO could withhold up to a cumulative 50% of payments for deficiencies in more than one business system, and withholdings could total up to 100% of contract payments if the ACO determines that there are one or more system deficiencies that are “highly likely to lead to improper contract payments being made, or represent an unacceptable risk of loss to the Government” until the ACO determines that the contractor has corrected the deficiencies.
Insights
Client Alert | 4 min read | 12.31.25
Raising the Bar: New York Expands Consumer Protection Law with FAIR Business Practices Act
New York Governor Kathy Hochul has signed into law the most significant update to New York’s consumer protection law in 45 years — the Fostering Affordability and Integrity through Reasonable Business Practices Act, or FAIR Business Practices Act — expanding the scope of the state’s authority to now challenge unfair and abusive business practices. The measure, backed by New York Attorney General (“AG”) Letitia James and signed on December 19, 2025, amends New York’s General Business Law § 349, giving regulators new tools to protect consumers and promote fair marketplace practices.
Client Alert | 4 min read | 12.30.25
Client Alert | 6 min read | 12.30.25
Investor Advisory Committee Recommends SEC Disclosure Guidelines for Artificial Intelligence
Client Alert | 2 min read | 12.29.25
FYI – GAO Finds Key Person “Available” Despite Accepting Employment with a Different Company
