242.7200 Scope  of subpart.

(a)  This subpart provides policies, procedures, and standards for use in the evaluation of a contractor's material management and accounting system (MMAS).

(b)  The policies, procedures, and standards in this subpart--

(1)  Apply only when the contractor has contracts exceeding the simplified acquisition threshold that are not for the acquisition of commercial items and are either--

(i)  Cost-reimbursement contracts; or

(ii)  Fixed-price contracts with progress payments made on the basis of costs incurred by the contractor as work progresses under the contract; and

(2)  Do not apply to small businesses, educational institutions, or nonprofit organizations.