Corrective Action Plan (CAP)

A formal document that identifies the root cause of a performance, quality, compliance, or management issue and describes the actions a contractor will take to correct it and prevent recurrence. A Corrective Action Plan (CAP) typically defines the corrective measures, responsible personnel, implementation schedule, verification methods, and expected outcomes. In government contracting, CAPs may be requested following poor performance evaluations, quality deficiencies, audit findings, Cure Notices, or other contract performance concerns. Contracting officials use the CAP to assess the contractor’s commitment and ability to resolve issues and determine whether continued contract performance, additional oversight, or more serious contractual remedies are appropriate.