MMAS standards Clause Samples

MMAS standards. The MMAS shall have adequate internal controls to ensure system and data integrity, and shall— (1) Have an adequate system description including policies, procedures, and operating instructions that comply with the FAR and Defense FAR Supplement; (2) Ensure that costs of purchased and fab- ricated material charged or allocated to a contract are based on valid time-phased re- quirements as impacted by minimum/eco- nomic order quantity restrictions. (i) A 98 percent bill of material accuracy and a 95 percent master production schedule accuracy are desirable as a goal in order to ensure that requirements are both valid and appropriately time-phased. (ii) If systems have accuracy levels below these, the Contractor shall provide adequate evidence that— (A) There is no material harm to the Gov- ernment due to lower accuracy levels; and (B) The cost to meet the accuracy goals is excessive in relation to the impact on the Government; (3) Provide a mechanism to identify, re- port, and resolve system control weaknesses and manual override. Systems should iden- tify operational exceptions such as excess/re- sidual inventory as soon as known; (4) Provide audit trails and maintain records (manual and those in machine read- able form) necessary to evaluate system logic and to verify through transaction test- ing that the system is operating as desired; (5) Establish and maintain adequate levels of record accuracy, and include reconcili- ation of recorded inventory quantities to physical inventory by part number on a peri- odic basis. A 95 percent accuracy level is de- sirable. If systems have an accuracy level below 95 percent, the Contractor shall pro- vide adequate evidence that— (i) There is no material harm to the Gov- ernment due to lower accuracy levels; and (ii) The cost to meet the accuracy goal is excessive in relation to the impact on the Government; (6) Provide detailed descriptions of cir- cumstances that will result in manual or system generated transfers of parts; (7) Maintain a consistent, equitable, and unbiased logic for costing of material trans- actions as follows: (i) The Contractor shall maintain and dis- close written policies describing the transfer methodology and the loan/pay-back tech- nique. (ii) The costing methodology may be standard or actual cost, or any of the inven- tory costing methods in 48 CFR 9904.411– 50(b). The Contractor shall maintain consist- ency across all contract and customer types, and from accounting period to accounting p...