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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: December 13, 2000

FROM: Barry McVay, CPCM

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Material Management and Accounting Systems (MMAS)

SOURCE: Federal Register, December 13, 2000, Vol. 65, No. 240, page 77832

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is amending DFARS Subpart 242.72, Contractor Material Management and Accounting System, to revise the criteria for determining when review of a contractor's MMAS is needed.

EDITOR'S NOTE: For more on the proposed rule, see the July 3, 2000, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Material Management and Accounting Systems (MMAS)."

EFFECTIVE DATE: December 13, 2000.

FOR FURTHER INFORMATION CONTACT: Mr. Rick Layser, Defense Acquisition Regulations Council, OUSD (AT&L) DP (DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0293; fax: 703-602-0350. Cite DFARS Case 2000-D003 when referring to this rule.

SUPPLEMENTAL INFORMATION: On July 3, 2000, DOD published a proposed rule to revise DFARS Subpart 242.72 because of confusion regarding when DFARS 252.242-7004, Material Management and Accounting System, is to be included in a solicitation or contract. DFARS 242.7206, Contract Clause, required the inclusion of DFARS 252.242-7004 in "all solicitations and contracts exceeding the simplified acquisition threshold that are not for the acquisition of commercial items and (a) are not awarded under the set-aside or Section 8(a) procedures of FAR Part 19; and (b) are either (1) cost-reimbursement contracts; or (2) fixed price contracts with progress payments or other government financing." However, DFARS 242.7203, MMAS Disclosure, Demonstration, and Maintenance Requirements, and DFARS 252.242-7004 stated that only large businesses are subject to MMAS.

Six sources submitted comments on the proposed rule. Based on their comments, DOD has decided to finalize the proposed rule with minor editorial changes.

The following are the significant changes being made by the rule, with differences between the proposed and final versions contained in brackets ("[ ]"):

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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