EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
How EY can help
-
EY Government Contract Services provides government contracting consulting, government contract accounting and pharmaceutical government pricing support.
Read more
As organizations develop and enhance their government market strategy, specific attention should be given to control requirements such as those mandated by the U.S. Department of Defense (DoD). Developing, maintaining and assessing controls for these and other contract requirements go beyond an exercise of compliance. Effective controls and systems are often prerequisites for contract eligibility. In these situations, the successful pursuit of an award is contingent upon the ability to demonstrate system and control requirements. After the contract is awarded, government-approved systems and controls provide an added benefit of decreased scrutiny as government auditors are able to rely on an organization’s controls. Finally, once implemented, effective systems and controls provide organizations with greater efficiencies in government operations — eliminating redundancies and managing risks through a clear delineation and assignment of requirements to organizational functions, processes and roles.
The DoD implements the rules related to contractor business systems through Defense Federal Acquisition Regulation Supplement (DFARS) contract clause 252.242-7005. This includes contract withholds for contractors found to have significant deficiencies within one or more of their applicable business systems. Per the clause, defense contractors may be subject to one or more of the following six systems: