Difference between revisions of "DFARS 252.242-7004 Material Management and Accounting System"
Line 3: | Line 3: | ||
|ClauseorProvision=Clause | |ClauseorProvision=Clause | ||
|Prescribedin=242.7204 | |Prescribedin=242.7204 | ||
+ | |PrescriptionOverview===Prescription== | ||
+ | Use the clause at 252.242-7004, Material Management and Accounting System, in all solicitations and contracts exceeding the simplified acquisition threshold that are not for the acquisition of commercial items and— | ||
+ | |||
+ | '''(a)''' Are not awarded to small businesses, educational institutions, or nonprofit organizations; and | ||
+ | |||
+ | |||
+ | '''(b)''' Are either— | ||
+ | |||
+ | *'''(1)''' '''Cost-reimbursement contracts'''; or | ||
+ | |||
+ | *'''(2)''' '''Fixed-price contracts with progress payments''' made on the basis of costs incurred by the contractor as work progresses under the contract. | ||
+ | |||
+ | |||
|FARClauseOverview===Clause== | |FARClauseOverview===Clause== | ||
==(a) Definitions== | ==(a) Definitions== |
Revision as of 08:41, 5 August 2014
Prescribed in 242.7204 | ||
Effective Date: | 1 May 2011 | |
Clause or Provision: | Clause | |
Provision or Clause Number: | S 252.242-7004 Material Management and Accounting System | |
Principle Type And/Or Purpose of Contract: | ||
Required: | ||
Applicable: | ||
Optional: | ||
Subject: | ||
ProcurementType: | ||
Contract Threshold: | ||
Prescription Overview: |
PrescriptionUse the clause at 252.242-7004, Material Management and Accounting System, in all solicitations and contracts exceeding the simplified acquisition threshold that are not for the acquisition of commercial items and— (a) Are not awarded to small businesses, educational institutions, or nonprofit organizations; and
| |
Clause Overview: |
Clause(a) DefinitionsAs used in this clause— (1) “Material management and accounting system (MMAS)” means the Contractor's system or systems for planning, controlling, and accounting for the acquisition, use, issuing, and disposition of material. Material management and accounting systems may be manual or automated. They may be stand-alone systems or they may be integrated with planning, engineering, estimating, purchasing, inventory, accounting, or other systems. (2) “Valid time-phased requirements” means material that is—
(3) “Contractor” means a business unit as defined in section 31.001 of the Federal Acquisition Regulation (FAR). (4) “Acceptable material management and accounting system” means a MMAS that generally complies with the system criteria in paragraph (d) of this clause. (5) “Significant deficiency” means a shortcoming in the system that materially affects the ability of officials of the Department of Defense to rely upon information produced by the system that is needed for management purposes. (b) GeneralThe Contractor shall— (1) Maintain an MMAS that—
(2) Assess its MMAS and take reasonable action to comply with the MMAS standards in paragraph (e) of this clause. (c) Disclosure and maintenance requirementsThe Contractor shall—
(d) System criteriaThe MMAS shall have adequate internal controls to ensure system and data integrity, and shall--
(e) Significant Deficiencies(1) The Contracting Officer will provide an initial determination to the Contractor, in writing, of any significant deficiencies. The initial determination will describe the deficiency in sufficient detail to allow the Contractor to understand the deficiency. (2) The Contractor shall respond within 30 days to a written initial determination from the Contracting Officer that identifies significant deficiencies in the Contractor's MMAS. If the Contractor disagrees with the initial determination, the Contractor shall state, in writing, its rationale for disagreeing. (3) The Contracting Officer will evaluate the Contractor's response and notify the Contractor, in writing, of the Contracting Officer’s final determination concerning— (i) Remaining significant deficiencies; (ii) The adequacy of any proposed or completed corrective action; and (iii) System disapproval if the Contracting Officer determines that one or more significant deficiencies remain. (f)If the Contractor receives the Contracting Officer’s final determination of significant deficiencies, the Contractor shall, within 45 days of receipt of the final determination, either correct the significant deficiencies or submit an acceptable corrective action plan showing milestones and actions to eliminate the significant deficiencies. (g) Withholding paymentsIf the Contracting Officer makes a final determination to disapprove the Contracto’s MMAS, and the contract includes the clause at 252.242-7005, Contractor Business Systems, the Contracting Officer will withhold payments in accordance with that clause. | |
Important Notes/Requirements: | ||
Subcontract Threshold: | ||
Incorporated by Reference: | Yes | |
Uniform Contract Format: | ||
Editor: | Marshall |
Personal notes.