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    If DFAR 252.242-7005 does not apply, can DFAR 252.244-7001 still apply?


    Sorry, but your contractor is probably correct.  There is not a link (at least not a link such as what you are suggesting) between 252.242-7005 Contractor Business Systems and 252.244-7001 Contractor Purchasing System Administration.  You have to look at the “prescription” of each clause.  The prescription is the language in the FAR and DFARS that tells the user when a particular clause needs to be put in their contract.  This is the DFARS prescription for 252.244-7001:
    As prescribed in 244.305-71, use one of the following clauses:
      Basic.  As prescribed in 244.305-71(a), use the following clause.
    DFARS 244.305-71 says:
    244.305-71  Contract clause.
    Use the Contractor Purchasing System Administration basic clause or its alternate as follows:
      (a)  Use the clause at 252.244-7001, Contractor Purchasing System Administration—Basic, in solicitations and contracts containing the clause at FAR 52.244-2, Subcontracts.
      (b)  Use the clause at 252.244-7001, Contractor Purchasing System Administration—Alternate I, in solicitations and contracts that contain the clause at 252.246-7007, Contractor Counterfeit Electronic Part Detection and Avoidance System, but do not contain FAR 52.244-2, Subcontracts.
    This means that you must look to see if your contract contains FAR 52.244-2, Subcontracts.  If you have this clause, then your contract must also contain 252.244-7001.  (244. 305-71 (b) will not apply because you are not covered by CAS)  

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