48 CFR §242.7202

1. (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. (1)Reasonably forecasts material requirements;
   2. (2)Ensures the costs of purchased and fabricated material charged or allocated to a contract are based on valid time-phased requirements; and
   3. (3)Maintains a consistent, equitable, and unbiased logic for costing of material transactions.
2. (b)The cognizant contracting officer, in consultation with the auditor and functional specialist, if appropriate, shall—
   1. (1)Determine the acceptability of the contractor's MMAS and approve or disapprove the system; and
   2. (2)Pursue correction of any weaknesses or deficiencies.
3. (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.