The Department of Defense (DoD) has issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to redefine the term "material weakness" for evaluating contractor business systems. This term replaces "significant deficiency" and aligns with generally accepted auditing standards. The rule aims to provide clearer guidance for identifying and addressing deficiencies, thereby improving oversight of contractor business systems. The regulation impacts various contracting processes but does not add new compliance requirements for small businesses or contracts below certain thresholds.
Simple Explanation
The government is changing a special word it uses to check if a company is doing what it promised in a business deal. They hope this makes it easier to see if something is really wrong, like when a toy has a big crack instead of a small scratch.