Pop quiz: Your business recently landed a $50 million Department of Defense contract. You've let a couple of smaller jobs expire in anticipation of taking on the government work. You've invested in materials and lined up a series of subcontractors to help you meet the contract terms. Everything's humming along beautifully.
Then the Defense Contract Audit Agency (DCAA) pays a surprise visit and determines your accounting system isn't in compliance with their standards. What happens next?
A: The DCAA immediately terminates the contract.
B: The DCAA sets a reasonable deadline for bringing your system into compliance, and the work continues.
C: The DCAA suspends the contract until you come into compliance. You're solely liable for any lost revenue and for any money invested in materials and subcontractors to date, as well as the costs of reaching compliance.
D: None of the above.