Trying to find opinions on whether or not a contractor needs to have an adequate accounting system for a T&M task order under a commercial IDIQ contract. The solicitation was developed with FAR Parts of 12, 15, and task orders are being issued under Part 16.
Background: The RFP stated that the contractors would have to have an adequate accounting system since T&M type task orders would potentially be awarded. Therefore, the offerors were required to have accounting system audits performed by DCAA. One of the contractors was deemed in-adequate; however, was still awarded an IDIQ with a statement made that they would only be eligible for firm fixed price task orders until their accounting system was deemed adequate. A follow up audit has been conducted by DCAA and again they are deemed in-adequate; however, with a note from DCAA that there is minimal risk to the government with one of their issues. After discussions with the contractor, one of the issues can be fixed; however, the other issue they are not going to fix, as they state does not pertain to them since they do not bid on cost reimbursement type work. This is the issue that DCAA has stated has minimal risk to the government.
My question is: If the contractor is never going to have an adequate report from DCAA are they eligible for T&M type task orders under a commercial IDIQ? I always thought with all T&M’s they need an adequate accounting system no matter what (based on FAR-other than FFP needs adequate accounting system). Or is commercial handled differently? Or is it a Contracting Officers discretion?