Contractor Business Systems
A contract clause under the Defense Federal Acquisition Regulation Supplement, placed in Uniform Contract Format Section I (Contract clauses).
When it applies
Required by DFARS 242.7001 in DoD CAS-covered (covered) contracts that include any of the six business-system clauses — establishes payment withholding for significant business-system deficiencies.
Prescription
The DFARS directs use of 252.242-7005 at 242.7001 — read the prescribing section on acquisition.gov →.
Official text
The full, authoritative text of 252.242-7005 is on acquisition.gov: View DFARS 252.242-7005 →
Frequently asked questions
When does DFARS 252.242-7005 apply?
Required by DFARS 242.7001 in DoD CAS-covered (covered) contracts that include any of the six business-system clauses — establishes payment withholding for significant business-system deficiencies.
Where is DFARS 252.242-7005 prescribed?
The DFARS prescribes 252.242-7005 at 242.7001. ArcClause selects it automatically when your acquisition triggers that prescription.
Is DFARS 252.242-7005 a solicitation provision or a contract clause?
252.242-7005, Contractor Business Systems, is a contract clause under the Defense Federal Acquisition Regulation Supplement.
Is DFARS 252.242-7005 incorporated by reference or set out in full text?
252.242-7005 is typically incorporated by reference in the contract.
Where can I read the official text of DFARS 252.242-7005?
The full, authoritative text of 252.242-7005 is published on acquisition.gov.
How do I know which clauses apply to my acquisition?
ArcClause builds a complete FAR/DFARS clause matrix for your acquisition automatically — enter your parameters and it selects every applicable provision and clause, including 252.242-7005 when triggered. It is free to use at https://www.aframesolutions.com/arcclause.
Which clauses does your solicitation need?
Answer a short wizard and ArcClause builds your full FAR & agency-supplement matrix, with the prescription behind every row, aware of both the legacy FAR and the FAR Overhaul deviations your agency has adopted. Get it emailed to you as Word & Excel. Free, no login.