MMAS Review Eligibility

2.1.2. MMAS Review Eligibility

2.1.2.1. DFARS 242.7203 establishes the criteria for conducting reviews. The Government may review any contractor MMAS when the contractor has received qualifying sales of DOD prime contracts or subcontracts totaling $40 million or more in its preceding fiscal year. Qualifying sales are those which cost or pricing data were required under 10 U.S.C. 2306a, as implemented in FAR 15.403, or that are contracts priced on other than firm-fixed-price or fixed-price with economic price adjustment basis. Sales include prime contracts, subcontracts, and modifications to such contracts and subcontracts.

DFAR 242.72 - Contractor Material Management and Accounting System

DFAR 242.7203

(a) Criteria for conducting reviews. Conduct an MMAS review when--

(1) A contractor has $40 million of qualifying sales to the Government during the contractor's preceding fiscal year; and

(2) The administrative contracting officer (ACO), with advice from the auditor, determines an MMAS review is needed based on a risk assessment of the contractor's past experience and current vulnerability.

(b) Qualifying sales. Qualifying sales are sales for which certified cost or pricing data were required under 10 U.S.C. 2306a, as implemented in FAR 15.403, or that are contracts priced on other than a firm-fixed-price or fixed-price with economic price adjustment basis. Sales include prime contracts, subcontracts, and modifications to such contracts and subcontracts.

Useful Links

DCMA Material Management and Accounting System (MMAS) Review (Guidebook)

http://guidebook.dcma.mil/44/