48 CFR § 242.7202 - 242.7202 Policy.

---
identifier: "/us/cfr/t48/s242.7202"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 242.7202 - 242.7202   Policy."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "242.7202"
section_name: "242.7202   Policy."
chapter_number: 2
chapter_name: "DEFENSE ACQUISITION REGULATIONS SYSTEM, DEPARTMENT OF DEFENSE"
subchapter_number: "G"
subchapter_name: "CONTRACT MANAGEMENT"
part_number: "242"
part_name: "CONTRACT ADMINISTRATION AND AUDIT SERVICES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "41 U.S.C. 1303 and 48 CFR chapter 1."
regulatory_source: "56 FR 36437, July 31, 1991, unless otherwise noted."
cfr_part: "242"
---


# 242.7202 242.7202   Policy.

(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.

[76 FR 28869, May 18, 2011, as amended at 81 FR 36473, June 7, 2016; 90 FR 5729, Jan. 17, 2025]