e.  Property Systems

The following comments were submitted regarding property systems:

Comment: Replace the phrase "previously unapproved" property management systems with the phrase "disapproved" for consistency.

Response: The phrase "previously unapproved property management system" in 245.105(e) has been replaced with the phrase "previously disapproved property management system" for consistency.

Comment: The proposed rule property system terminology is inconsistent with current FAR part 45. The proposed rule provides for "approval/disapproval" of a system while FAR part 45 and FAR clause 52.245-1 use the verbiage "adequate/inadequate."

Response: The language in DFARS 245 supplements the FAR language, and is consistent with other business system sections as well as with section 893 of the NDAA.

Comment: One respondent stated that it is unclear whether the proposed rule uses a two-step process for approval/disapproval of a property system where the Government property administrator initially determines if a deficiency exists that would make the system "inadequate" and then works with the contracting officer to determine if the system is "approved/disapproved" and whether payment withholding is required, or if the Government property administrator is acting as an agent of the cognizant contracting officer using a one-step process. Another respondent suggested that property administrators should have the authority to approve contractor property management systems, and report system deficiencies to the cognizant contracting officer recommending disapproval. Disapproval authority should reside with the cognizant contracting officer.

Response: DFARS 245.105 is clear that Government property administrators are responsible for providing recommendations and reporting system deficiencies to the cognizant contracting officer, including recommendations regarding contractor property management system approval or disapproval. However, system approval or disapproval authority shall remain with the cognizant contracting officer.