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   <concept id="DFARS_252.245-7003"
            ditaarch:DITAArchVersion="1.2"
            class="- topic/topic concept/concept ">
      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">252.245-7003</ph> Contractor Property
Management System Administration.</title>
      <conbody outputclass="clause" class="- topic/body  concept/conbody ">
         <p class="- topic/p ">As prescribed in 
               
                  <xref href="245.107.dita#DFARS_245.107"
                  base="DFARS-245.107"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref ">245.107</xref>
               (5), insert
the following clause:</p>
         <p outputclass="Ctr_SmCaps" class="- topic/p ">CONTRACTOR PROPERTY MANAGEMENT SYSTEM
ADMINISTRATION (APR 2012)</p>
         <p outputclass="List1" class="- topic/p ">(a) <i class="+ topic/ph hi-d/i ">Definitions.</i> As used in this
clause—</p>
         <p class="- topic/p ">“Acceptable property management system” means a property system
that complies with the system criteria in paragraph (c) of this
clause.</p>
         <p class="- topic/p ">“Property management system” means the Contractor’s system or
systems for managing and controlling Government property.</p>
         <p class="- topic/p ">“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.</p>
         <p outputclass="List1" class="- topic/p ">(b) <i class="+ topic/ph hi-d/i ">General.</i> The Contractor shall
establish and maintain an acceptable property management system.
Failure to maintain an acceptable property management system, as
defined in this clause, may result in disapproval of the system
by the Contracting Officer and/or withholding of payments.</p>
         <p outputclass="List1" class="- topic/p ">(c) <i class="+ topic/ph hi-d/i ">System criteria.</i> The Contractor’s
property management system shall be in accordance with paragraph
(f) of the contract clause at Federal Acquisition Regulation 52.245-1.</p>
         <p outputclass="List1" class="- topic/p ">(d) <i class="+ topic/ph hi-d/i ">Significant deficiencies.</i> (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.</p>
         <p outputclass="List2" class="- topic/p ">(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
property management system. If the Contractor disagrees with the
initial determination, the Contractor shall state, in writing, its
rationale for disagreeing.</p>
         <p outputclass="List3" class="- topic/p ">(3) The Contracting Officer will evaluate
the Contractor's response and notify the Contractor, in writing,
of the Contracting Officer’s final determination concerning—</p>
         <p outputclass="List3" class="- topic/p ">(i) Remaining significant deficiencies;</p>
         <p outputclass="List3" class="- topic/p ">(ii) The adequacy of any proposed or completed
corrective action; and</p>
         <p outputclass="List3" class="- topic/p ">(iii) System disapproval, if the Contracting
Officer determines that one or more significant deficiencies remain.</p>
         <p outputclass="List1" class="- topic/p ">(e) 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.</p>
         <p outputclass="List1" class="- topic/p ">(f) Withholding payments. If the Contracting
Officer makes a final determination to disapprove the Contractor’s
property management system, and the contract includes the clause
at 
               <xref href="252.242-7005.dita#DFARS_252.242-7005"
                  base="i1383876"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref ">252.242-7005</xref>
            , Contractor
Business Systems, the Contracting Officer will withhold payments
in accordance with that clause.</p>
         <p outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
      </conbody>
   </concept>
</dita>
