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FAR and DFARS › DFARS Part 242: Contract Administration and Audit Services › Subpart 242.72

DFARS 242.7202 Policy.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section states DoD policy that contractors must have a Material Management and Accounting System (MMAS) that meets the standards in DFARS clause 252.242-7004. The contracting officer will evaluate and approve or disapprove the system, and require correction of any weaknesses. It matters because an unacceptable MMAS can affect contract costs and compliance.

Applies to: DoD contractors with an MMAS

What it requires

  • Have an MMAS that conforms to the standards in DFARS 252.242-7004
  • Ensure the MMAS reasonably forecasts material requirements
  • Ensure costs of purchased and fabricated material charged or allocated to a contract are based on valid time-phased requirements
  • Maintain a consistent, equitable, and unbiased logic for costing of material transactions

Key terms: MMAS · Material Management and Accounting System · contracting officer · auditor · functional specialist

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) DoD policy is for its contractors to have an MMAS that conforms to the standards in paragraph (d) of the clause at 252.242-7004, Material Management and Accounting System, so that the system—

(1) Reasonably forecasts material requirements;

(2) Ensures the costs of purchased and fabricated material charged or allocated to a contract are based on valid time-phased requirements; and

(3) Maintains a consistent, equitable, and unbiased logic for costing of material transactions.

(b) The cognizant contracting officer, in consultation with the auditor and functional specialist, if appropriate, shall—

(1) Determine the acceptability of the contractor's MMAS and approve or disapprove the system; and

(2) Pursue correction of any weaknesses or deficiencies.

(c) In evaluating the acceptability of the contractor's MMAS, the contracting officer, in consultation with the auditor and functional specialist, if appropriate, shall determine whether the contractor's MMAS complies with the system criteria for an acceptable MMAS as prescribed in the clause at 252.242-7004, Material Management and Accounting System.

Sections it refers to

← 242.7201 Definitions. · 242.7203 Review procedures. →

Rule changes for DFARS Part 242

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 242.7202 Policy · SpendQuery