Process
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Processes, Process Segments, and Criteria References 1 1 1. PROPERTY MANAGEMENT: THE PROCESS OF:
(1) MANAGING GOVERNMENT PROPERTY (GP) IN THE CONTRACTOR’S POSSESSION;
(2) ENSURING AN ADEQUATE PROPERTY MANAGEMENT SYSTEM(s) FOR GP THE IN ACCORDANCE WITH
CONTRACTUAL REQUIREMENTS;
(3) DETERMINING THE PROPERTY MANAGEMENT SYSTEM(S) IS CONSISTENT WITH VOLUNTARY
CONSENSUS STANDARDS (VCS) AND INDUSTRY-LEADING PRACTICES AND STANDARDS (ILP&S) FOR GP PROPERTY MANAGEMENT EXCEPT WHERE INCONSISTENT WITH LAW OR REGULATION; AND
(4) EVALUATING CONTRACTOR ASSESSMENTS, INTERNAL AUDITS AND CORRECTIVE ACTION(S) WHEN REQUIRED.
FAR 52.245-1, Alt I, and Alt II (June 2007)
INDEPENDENT VARIABLES THAT MAY DIFFER FOR EVERY CONTRACTOR
APPLICABLE VOLUNTARY CONSENSUS STANDARD(S) OR INDUSTRY LEADING PRACTICES
LIST ANY PROCESS, SUBPROCESS or CRITERIA contained within the Contractor’s PMS DRIVEN by a VCS and/or ILP.
[Use however many rows are needed to address any evaluative criteria set forth in the VCS or ILP for this process.]
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Process Segment: Management of Government Property 1 1 The contractor’s property management system(s) adequately
manages (control, use, preserve, protect, repair and maintain) GP in its possession.
FAR 52.245-1 (b) (1)
1 2 Contractor initiates and maintains the processes, systems, procedures, records, and methodologies, necessary for effective control of GP consistent with VCS and/or (ILP&S) for GP
management.
FAR 52.245-1 (b) (1)
1 3 Property management plans, systems, and procedures at the contract, program, site or entity level are established and implemented to enable outcomes for all process requirements.
FAR 52.245-1 including processes
specified in Para.
(f), embedded processes and segregated processes 1 4 The contractor’s property management system(s) is adequate to
satisfy the requirements of FAR 52.245-1 clauses.
FAR 52.245-1 (b) (1)
1 5 Contractor establishes and maintains written procedures to assess the effectiveness of their property management system(s).
FAR 52.245-1 (f) (1) (x) (3)
1 6 Significant changes to the contractor’s property management system are disclosed to the Government Property Administrator (GPA) prior to implementation.
FAR 52.245-1 (b) (1)
1 7 Contractor applies responsibility requirements to all GP under the contractor's accountability, stewardship, possession or control, including its vendors or subcontractors.
FAR 52.245-1 (b) (2) and 52.245-1 (f) (1) (v)
1 8 The Government is allowed access to the contractor's premises and all GP, at reasonable times, for the purposes of reviewing, inspecting and evaluating the contractor's property management plan, systems, procedures, records, and supporting
documentation that pertains to GP.
FAR 52.245-1 (g) (1)
1 9 When determined by the Government that the contractor's
property management practices are inadequate or not acceptable for the effective management and/or control of GP under
contract, and/or present an undue risk to the Government, the contractor immediately takes all necessary corrective actions directed by the GPA.
FAR 52.245-1 (g) (3)
Process Segment: Contractor Self Assessments and /Audits Of Property Management System
INDEPENDENT VARIABLES THAT MAY DIFFER FOR EVERY CONTRACTOR
APPLICABLE VOLUNTARY CONSENSUS STANDARD(S) OR INDUSTRY LEADING PRACTICES
LIST ANY PROCESS, SUBPROCESS or CRITERIA contained within the Contractor’s PMS DRIVEN by a VCS and/or ILP.
[Use however many rows are needed to address any evaluative criteria set forth in the VCS or ILP for this process.]
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1 11 Contractor’s procedures specify the types and/or methods to be employed to perform assessments and/or audits is sufficient detail to enable the PA to adequately evaluate compliance 1 12 Contractor performs periodic assessments, internal reviews
and/or audits.
FAR 52.245-1 (f) (1) (x) (3)
1 13 Contractor makes significant findings and/or results of internal reviews and audits pertaining to GP available to the GPA.
FAR 52.245-1 (f) (1) (x) (3)
2. ACQUISITION: THE PROCESS OF THE CONTRACTOR ACQUIRING OR FABRICATING GP FOR THE
PERFORMANCE OF A SPECIFIED CONTRACT. THIS
PROCESS ADDRESSES THE ACQUISITION OF GP AND ITS REIMBURSABLE COSTS TO THE CONTRACT, AND THE ACQUISITION OF GP THROUGH REQUISITION FROM GOVERNMENT SOURCES OR THROUGH CONTRACT TRANSFER.
INDEPENDENT VARIABLES THAT MAY DIFFER FOR EVERY CONTRACTOR
APPLICABLE VOLUNTARY CONSENSUS STANDARD(S) OR INDUSTRY LEADING PRACTICES
LIST ANY PROCESS, SUBPROCESS or CRITERIA contained within the Contractor’s PMS DRIVEN by a VCS and/or ILP.
[Use however many rows are needed to address any evaluative criteria set forth in the VCS or ILP for this process.]
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Process Segment: Acquisition Authority
All Government Property includeing GFP and all property acquired by the contractor (CAP), title to which vests in the Government under paragraph FAR 52.245-1, is subject to the provisions of this clause.
FAR 52.245-1 (d) (2) (i)
2 1 Contractor ensures, for fixed price contracts, when specified as a LINE ITEM IN THE CONTRACT that title to each item of
equipment (EQP), special test equipment (STE) and special tooling (ST) acquired by the contractor for the Government under contracts shall pass to and vest in the Government when its use in performing this contract commences or when the Government has paid for it, whichever is earlier, whether or not title previously vested in the Government.
FAR 52.245-1 (d) (2) (ii)
2 2 Contractor ensures, for fixed price contracts when the contract contains a provision, i.e., a LINE ITEM directing the contractor to purchase material for which the Government will reimburse the contractor as a direct item of cost under this contract, title to material purchased from a vendor shall pass to and vest in the Government upon the vendor's delivery of such material.
FAR 52.245-1 (d) (2) (iii) (A)
2 3 Contractor ensures title, for GP under cost-reimbursement or time-and-material contracts or cost-reimbursable contract line items under fixed-price contracts, to all property purchased by the contractor for which the contractor is entitled to be reimbursed as a direct item of cost under the contract, passes to and vests in the Government upon the vendor's delivery of such property.
FAR 52.245-1 (e) (3) (i)
2 3 Contractor ensures title, to GP to all other property under cost reimbursement or time-and-material contracts or
cost-reimbursable contract line items under fixed-price contracts, the cost of which is reimbursable to the contractor, shall pass to and vest in the Government upon issuance of the property for use in contract performance; commencement of processing of the property for use in contract performance; or reimbursement of the cost of the property by the Government, whichever occurs first.
FAR 52.245-1 (e) (3) (ii) (A), (B), and (C)
2 4 Contractor ensures that all property acquired meets the
requirements of being necessary for contract performance including FAR Part 31 requirements of being reasonable, Allocable and Allowable and is acquired only in the amounts needed to perform the contract
Process Segment: Classification of Government Property 2 5 Contractor ensures that property is properly classified prior to acquisition to ensure compliance with contractor’s accounting practices and Cost Accounting Disclosure statement, where applicable.
Process Segment: Requirements Computation
2 6 Contractor documents that all property acquired is consistent with its engineering, production planning, and material control
operations.
FAR 52.245-1 (f) (1) (i)
2 7 Contractor’s property management system ensures as an outcome all property acquired is consistent with its engineering, production planning, and material control operations.
FAR 52.245-1 (f) (1) (i)
Non-Profit Issues
2 8 When FAR 52.245-1 Alt II is incorporated into the contract, contractor has obtained the CO’s approval before each acquisition purchased with funds available for research and having an acquisition cost of less than $5,000.
FAR 52.245-1 Alt II (e) (3)
2 9 When FAR 52.245-1 Alt II is set forth in contract(s) and title to property purchased with funds available for research and has an acquisition cost of $5,000 or more, contractor ensures title shall vest as set forth in the contract.
FAR 52.245-1 Alt II (e) (3)
2 10 When FAR 52.245-1 Alt II is set forth in the contract(s) and if title to property vests in the contractor, the contractor agrees that no costs shall be allowed for any depreciation, amortization, or use under any existing or future Government contract or subcontract.
FAR 52.245-1 Alt II (e) (3)
2 11 When FAR 52.245-1 Alt II is set forth in the contract(s), the contractor furnishes the CO a list of all property to which title is vested in the contractor under FAR 52.245-1 Alt II (e) (3) within 10 days following the end of the calendar quarter during which it was received.
FAR 52.245-1 Alt II (e) (3)
2 12 Contractor ensures title to GP is not affected by its incorporation into or attachment to any property not owned by the Government, nor shall GP become a fixture or lose its identity as personal property by being attached to any real property.
FAR 52.245-1 (e) (1)
Process Segment: MILSTRIP Acquisitions
2 13 Contractor shall ensure that all requisition documents are properly prepared including the use of routing identifiers, fund codes, etc.:
FAR 52.251-1 and DFARS 252.251-7001 2 14 Contractor shall ensure that the contractually specified Priority
code and Force Activity Designator is used on all requisitions
FAR 52.251-1 and DFARS 252.251-7001 2 15 Contractor shall ensure requisitions are submitted in a timely
fashion to minimize and avoid the use of emergency priorities unless authorized by the contract.
FAR 52.251-1 and DFARS 252.251-7001
3: RECEIVING: THE PROCESS OF GP INITIALLY ENTERING INTO A CONTRACTOR'S STEWARDSHIP.
INDEPENDENT VARIABLES THAT MAY DIFFER FOR EVERY CONTRACTOR
APPLICABLE VOLUNTARY CONSENSUS STANDARD(S) OR INDUSTRY LEADING PRACTICES
LIST ANY PROCESS, SUBPROCESS or CRITERIA contained within the Contractor’s PMS DRIVEN by a VCS and/or ILP.
[Use however many rows are needed to address any evaluative criteria set forth in the VCS or ILP for this process.]
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Process Segment: Receiving Process
3 1 GP received is documented and information meets record requirements of FAR 52.245-1 (f)(1)(iii)(A)(1) through (5).
FAR 52.245-1 (f) (1) (ii) and FAR 52.245-1 (f)(1)(iii)(A)(1) through (5) 3 2 Contractor documents receipt of GP, records the information
necessary to meet the record requirements of FAR 52.245-1 (f)(1)(iii)(A)(1) through (5).
FAR 52.245-1 (f) (1) (ii)
3 3 A timely written request is submitted to the CO when GFP is received by the contractor or for GFP after receipt and installation, in a condition not suitable for its intended use.
FAR 52.245-1 (d) (2) (ii)
3 4 A timely written request is submitted to the CO when GFP is not delivered to the contractor by the date(s) stated in the contract.
FAR 52.245-1 (d) (2) (i)
Process Segment: Discrepancies Incident To Shipment
3 5 Contractor manages any discrepancies incident to shipment. FAR 52.245-1 (f) (1) (ii)
3 6 A written statement is furnished to the GPA if overages, shortages, or damages and/or other discrepancies are
discovered upon receipt of GFP, and it contains all relevant facts, such as cause or condition and a recommended course(s) of action,.
FAR 52.245-1 (f) (1) (ii) (A)
3 7 The contractor takes all actions necessary to adjust for overages, shortages, damage and/or other discrepancies discovered upon receipt, in shipment of CAP from a vendor or supplier, to ensure the proper allocability and allowability of associated costs.
FAR 52.245-1 (f) (1) (ii) (B) and FAR 31.201-4
4. IDENTIFICATION: THE PROCESS OF PROPERLY IDENTIFYING GP IN ACCORDANCE WITH CONTRACTUAL REQUIREMENTS AND ILP&Ss.
INDEPENDENT VARIABLES THAT MAY DIFFER FOR EVERY CONTRACTOR
APPLICABLE VOLUNTARY CONSENSUS STANDARD(S) OR INDUSTRY LEADING PRACTICES
LIST ANY PROCESS, SUBPROCESS or CRITERIA contained within the Contractor’s PMS DRIVEN by a VCS and/or ILP.
[Use however many rows are needed to address any evaluative criteria set forth in the VCS or ILP for this process.]
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Process Segment: Identification Process
4 1 GP is identified as Government owned in a manner appropriate to the type of property.
FAR 52.245-1 (f) (1) (ii)
5. RECORDS: PROCESS OF ESTABLISHING AND
MAINTAINING STEWARDSHIP RECORDS TO MANAGE AND CONTROL ALL GP PROVIDED TO THE CONTRACTOR.
INDEPENDENT VARIABLES THAT MAY DIFFER FOR EVERY CONTRACTOR
APPLICABLE VOLUNTARY CONSENSUS STANDARD(S) OR INDUSTRY LEADING PRACTICES
LIST ANY PROCESS, SUBPROCESS or CRITERIA contained within the Contractor’s PMS DRIVEN by a VCS and/or ILP.
[Use however many rows are needed to address any evaluative criteria set forth in the VCS or ILP for this process.]
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Process Segment: All Records Of GP
5 1 Records are created and maintained of all GP accountable to contracts.
FAR 52.245-1 (f) (1) (iii)
5 2 Property records enable a complete, current, auditable record of all transactions.
FAR 52.245-1 (f) (1) (iii) (A) and (1) through (10) 5 3 Property records contain minimum information required, unless
otherwise approved by the GPA.
FAR 52.245-1 (f) (1) (iii) (A) and (1) through (10) 5 5 Government accounting source data is established and
maintained, and as may be required by contract(s).
FAR 52.245-1 (f) (1) (x) (2)
5 6 Records of GP are readily available to authorized Government personnel.
FAR 52.245-1 (g) (2)
5 7 Records of GP are safeguarded from tampering or destruction. FAR 52.245-1 (g) (2)
5 31 When DFARS 252.245-7000, Government-Furnished Mapping, Charting, and Geodesy Property, is set forth in the contract(s), the contractor does not duplicate, copy, or otherwise reproduce the property for purposes other than those necessary for performance of the contract.
DFARS 252.245-7000 (b)
Process Segment: Receipt and Issue System Records 5 8 When approved by the GPA, the contractor maintains, in lieu of
formal property records, a file of appropriately cross-referenced documents evidencing receipt, issue, and use of material that is issued for immediate consumption.
FAR 52.245-1 (f) (1) (iii) (B)
Process Segment: Material Management and Accounting System. [NOTE - These criteria are to be used when requested by the contracting officer to perform an MMAS review. PAs are to be part of the team performing an MMAS review.]
5 9 When DFARS 252.242-7004, Material Management and
Accounting System, is set forth in the contract(s), the contractor maintains an MMAS that reasonably forecasts material
requirements.
DFARS 252.242-7004 (b) (1) (i)
5 10 When DFARS 252.242-7004 is set forth in the contract(s), the contractor ensures that costs of purchased and fabricated material charged or allocated to a contract are based on valid time-phased requirements.
DFARS 252.242-7004 (b) (1) (ii)
5 11 When DFARS 252.242-7004 is set forth in the contract(s), the contractor maintains a consistent, equitable, and unbiased logic for costing of material transactions.
DFARS 252.242-7004 (b) (1) (iii) 5 12 When DFARS 252.242-7004 is set forth in the contract(s), the
contractor assess its MMAS and take reasonable action to comply with the MMAS standards in DFARS 252.242-7004 (e).
DFARS 252.242-7004 (b) (2) 5 13 When DFARS 252.242-7004 is set forth in the contract(s), the
contractor has policies, procedures, and operating instructions that adequately describe its MMAS.
DFARS 252.242-7004 (c) (1) 5 14 When DFARS 252.242-7004 is set forth in the contract(s), the
contractor provides to the ACO, upon request, the results of internal reviews that it has conducted to ensure compliance with established MMAS policies, procedures, and operating
instructions.
DFARS 252.242-7004 (c) (2)
5 15 When DFARS 252.242-7004 is set forth in the contract(s), the contractor discloses significant changes in its MMAS to the ACO at least 30 days prior to implementation.
DFARS 252.242-7004 (c) (3) 5 16 When DFARS 252.242-7004 is set forth in the contract(s), and
the contractor receives a report from the ACO that identifies any deficiencies in the MMAS, the contractor responds in accordance with DFARS 252.242-7004 requirements.
DFARS 252.242-7004 (d) (1) (i) (A) and (B) and (ii)
5 17 When DFARS 252.242-7004 is set forth in the contract(s), the contractor has adequate internal controls to ensure system and data integrity.
DFARS 252.242-7004 (e)
5 18 When DFARS 252.242-7004 is set forth in the contract(s), the contractor has an adequate system description including policies, procedures, and operating instructions that comply with the FAR and DFARS.
DFARS 252.242-7004 (e) (1)
5 19 When DFARS 252.242-7004 is set forth in the contract(s), the contractor ensures that costs of purchased and fabricated material charged or allocated to a contract are based on valid time-phased requirements as impacted by minimum/economic order quantity restrictions.
DFARS 252.242-7004 (e) (2)
5 20 When DFARS 252.242-7004 is set forth in the contract(s), the contractor sets a 98 percent bill of material accuracy and a 95 percent master production schedule accuracy as a desirable goal in order to ensure that requirements are both valid and
DFARS 252.242-7004 (e) (2) (i)
appropriately time-phased.
5 21 When DFARS 252.242-7004 is set forth in the contract(s), (ii) If systems have accuracy levels below DFARS 252.242-7004 (e) (2) (i) requirements, the contractor s provides adequate evidence of no material harm to the Government due to lower accuracy levels; and the cost to meet the accuracy goals is excessive in relation to the impact on the Government.
DFARS 252.242-7004 (e) (2) (i), and (ii) (A) and (B)
5 22 When DFARS 252.242-7004 is set forth in the contract(s), the contractor provides a mechanism to identify, report, and resolve system control weaknesses and manual override and other operational exceptions, such as excess/residual inventory as soon as known
DFARS 252.242-7004 (e) (3)
5 23 When DFARS 252.242-7004 is set forth in the contract(s), the contractor provides audit trails and maintains records (manual and those in machine-readable form) necessary to evaluate system logic and to verify through transaction testing that the system is operating as desired.
DFARS 252.242-7004 (e) (4)
5 24 When DFARS 252.242-7004 is set forth in the contract(s), the contractor establishes and maintains adequate levels of record accuracy, and includes reconciliation of recorded inventory quantities to physical inventory by part number on a periodic basis.
DFARS 252.242-7004 (e) (5)
5 25 When DFARS 252.242-7004 is set forth in the contract(s), and inventory accuracy level for the system(s) is below 95 percent, the contractor provides adequate evidence that of no material harm to the Government due to lower accuracy levels; and the cost to meet the accuracy goals is excessive in relation to the impact on the Government.
DFARS 252.242-7004 (e) (5) (1) and (2)
5 26 When DFARS 252.242-7004 is set forth in the contract(s), the contractor provides detailed descriptions of circumstances that will result in manual or system generated transfers of parts.
DFARS 252.242-7004 (e) (6) 5 27 When DFARS 252.242-7004 is set forth in the contract(s), the
contractor maintain a consistent, equitable, and unbiased logic for costing of material transactions in accordance with DFARS 252.242-7004 (e) (7) requirements.
DFARS 252.242-7004 (e) (7)
5 28 When DFARS 252.242-7004 is set forth in the contract(s) and where allocations from common inventory accounts are used, the contractor has controls (in addition to those in paragraphs (e)(2) and (7) of this clause) and ensures compliance with DFARS 252.242-7004 (e) (8) requirements.
DFARS 252.242-7004 (e) (8)
5 29 When DFARS 252.242-7004 is set forth in the contract(s) and regardless of the provisions of FAR 45.505-3(f)(1)(ii), the contractor has adequate controls to ensure that physically
commingled inventories that may include material for which costs are charged or allocated to fixed-price, cost-reimbursement, and commercial contracts do not compromise requirements of any of the standards in paragraphs (e)(1) through (8) of this clause and GFM is not physically commingled with other material or used on commercial work.
DFARS 252.242-7004 (e) (9) (i) and (ii)
5 30 When DFARS 252.242-7004 is set forth in the contract(s), the DFARS
252.242-contractor conducts periodic internal reviews to ensure compliance with established policies and procedures.
7004 (e) (10)
6. PHYSICAL INVENTORY: THE PROCESS OF PERIODICALLY PERFORMING, RECORDING, AND REPORTING PHYSICAL INVENTORIES.
INDEPENDENT VARIABLES THAT MAY DIFFER FOR EVERY CONTRACTOR
APPLICABLE VOLUNTARY CONSENSUS STANDARD(S) OR INDUSTRY LEADING PRACTICES
LIST ANY PROCESS, SUBPROCESS or CRITERIA contained within the Contractor’s PMS DRIVEN by a VCS and/or ILP.
[Use however many rows are needed to address any evaluative criteria set forth in the VCS or ILP for this process.]
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Process Segment: Performance
68 1 A physical inventory is periodically performed, recorded, and the results are disclosed.
FAR 52.245-1 (f) (1) (iv)
68 2 A final physical inventory is performed upon contract completion or termination, unless waived by the GPA.
FAR 52.245-1 (f) (1) (iv) and (x) 6 3 Contractor performs a final physical inventory upon contract
completion or termination
FAR 52.245-1 (f) (1) (iv) and (x) Process Segment: Recording
6 4 Physical inventories are recorded. FAR 52.245-1 (f)
(1) (iv)
Process Segment: Reporting Inventory Findings FAR 52.245-1 (f) (1) (iv)
6 5 Physical inventory results are disclosed. FAR 52.245-1 (f)
(1) (iv) and (x) Process Segment: Material Records Adjustments FAR 52.245-1 (f)
(1) (iv) 6 6 When applicable, the contractor has GPA determination of relief
from stewardship responsibility for reported LTD&D of Government owned material for reasonable inventory adjustments.
FAR 52.245-1 (f) (1) (vii) (A)
7. SUBCONTRACTOR CONTROL: THE PROCESS OF THE PRIME CONTRACTOR’S MANAGEMENT OF ITS
SUBCONTRACTORS POSSESSING GP.
INDEPENDENT VARIABLES THAT MAY DIFFER FOR EVERY CONTRACTOR
APPLICABLE VOLUNTARY CONSENSUS STANDARD(S) OR INDUSTRY LEADING PRACTICES
LIST ANY PROCESS, SUBPROCESS or CRITERIA contained within the Contractor’s PMS DRIVEN by a VCS and/or ILP.
[Use however many rows are needed to address any evaluative criteria set forth in the VCS or ILP for this process.]
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Process Segment: Prime Contractor Responsibilities 7 1 Contractor shall ensure that subcontracts and purchase orders
include the requirements of FAR 52.245-1 under which GP is to be acquired or furnished for subcontract performance.
FAR 52.245-1 (b) (3) and FAR 52.245-1 (b) (2) and FAR 52.245-1 (f) (52.245-1) (v) (A) 7 2 Contractor’s subcontracts clearly identify GP to be provided and
ensure appropriate flow down of contract terms and conditions, e.g., extent of liability for LTD&D of GP.
FAR 52.245-1 (f) (1) (v) (A) and FAR 52.245-1 (b) (3) and FAR 52.245-1 (b) (2) 7 3 Contractor assures its subcontracts are properly administered. FAR 52.245-1 (f)
(1) (v) (B) 7 4 Contractor periodically performs reviews as described in their
PMS Procedures to determine the adequacy of their subcontractor’s property management system(s).
FAR 52.245-1 (f) (1) (v) (B)
7 5 Contractor ensures continued responsibility when GP is shipped to a subcontractor or other location of the contractor.
FAR 52.245-1 (f) (1) (vii) (B) 7 6 Contractor complies with the requirements of FAR 52.244-2 prior
FAR 52.245-1 (f) (1) (vii) (B) 7 6 Contractor complies with the requirements of FAR 52.244-2 prior