Common use of Significant deficiencies Clause in Contracts

Significant deficiencies. (1) The Con- tractor shall respond, in writing, within 30 days to an initial determination that there are one or more significant deficiencies in one or more of the Contractor’s business sys- tems. (2) The Contracting Officer will evaluate the Contractor’s response and notify the Contractor, in writing, of the final deter- mination as to whether the Contractor’s business system contains significant defi- ciencies. If the Contracting Officer deter- mines that the Contractor’s business system contains significant deficiencies, the final determination will include a notice to with- hold payments.