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A $10 million contract for technical support services was awarded to boots Inc. It is a cost plus fix the contract that requires a small business subcontracting plan, and it also includes small business partition participation requirements. Government property is provided for both the contractor and subcontractors. DCM A's contracting purchasing system review team reviewed boots purchasing system. A few of the teams find an include one booths has procedures to ensure flow down of applicable flow down clauses; two boots uses competitive sourcing to the maximum estate extent practical, and three booths text that potential subcontractors are not DeBord or suspended when offers are initially received; however, boots press process does not include checking again immediately prior to award. The administrative contracting officer, a CEO determines that boots tell you to check subcontractors for department or suspension immediately before award is a significant deficiency. No other deficiencies were found and boots purchasing system. The DC MA property administrator reviewed bootsproperty system. Just a few of the property administrators finders include one booth is not reviewing is subcontractors property management system to make sure they are adequate; to there were two subcontractors that have been issued government property but did not include the applicable, mandatory flow down clauses. The ACO determines that both of these findings represent significant deficiencies in boots property system. No other deficiencies were found and boots property management system. Which or actions the ACO may take in the situation to incentivize boots to correct the deficiencies in his business systems? Select two that apply

1- if the final determination is that significant deficiencies exist in to a boots business systems, then begin with holding a maximum of 10% from payment to books until the deficiencies are corrected.

2-if the final determination is that significant efficiencies exist in to a Boots business systems, then begin with: a maximum of 5% from payment to boots until the deficiencies are corrected.

3-if Boots submits an acceptable corrective action plan within 45 days, then they will pull him a reduced to 1%, until all significant deficiencies have been corrected.

4- Notify Boots of the initial findings of significant deficiencies and give it 30 days to respond before issuing a final determination.

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