DEFINITION OF MATERIAL WEAKNESS FOR CONTRACTOR BUSINESS SYSTEMS.

SEC. 806. DEFINITION OF MATERIAL WEAKNESS FOR CONTRACTOR BUSINESS SYSTEMS. Section 893 of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011 (Public Law 111-383; 10 U.S.C. 2302 note) is amended— (1) by striking “significant deficiencies” both places it appears and inserting “material weaknesses”; (2) by striking “significant deficiency” each place it appears and inserting “material weakness”; and (3) by amending subsection (g)(4) to read as follows: “(4) The term ‘material weakness’ means a deficiency or combination of deficiencies in the internal control over information in contractor business systems, such that there is a reasonable possibility that a material misstatement of such information will not be prevented, or detected and corrected, on a timely basis. For purposes of this paragraph, a reasonable possibility exists when the likelihood of an event occurring— “(A) is probable; or “(B) is more than remote but less than likely.” .