When can a PMSA be performed on Long Lead Time Material, before or after the material has been received?
Just transferred to a new Command and need some clarification on this, THANKS!
Interesting question! The answer to your question is not until the material has been received. A PMSA is not required unless the contractor has possession of the Material and title has transferred to the Government. FAR Part 52.245-1 requires the contractor to have a system of internal controls to manage Government Property. The authority for a Property Administrator to audit a contractor comes from two places within the FAR 45.105(a) and FAR 52.245-1 (g). These two authorities simply state that an analysis shall be conducted by the Government, at reasonable times for the purpose of reviewing the contractors property management policies, procedures, practices, systems and supporting documentation that pertains to Government Property (full text included at bottom).
Since the Property Administrator audits the contractor to ensure they are complying with the requirements of 52.245-1 as well as any additional contract language pertaining to the management of Government Property, the scope of the audit will only include those items that the Government has title to. FAR 52.245-1 (e) is very specific as to when title takes place.
Let’s take a look at, (e)Title to Government Property paragraph (3).
(3) Title under Cost-Reimbursement or Time-and-Material Contracts or Cost-Reimbursable contract line items under Fixed-Price contracts.
(i) Title to all property purchased by the Contractor for which the Contractor is entitled to be reimbursed as a direct item of cost under this contract shall pass to and vest in the Government upon the vendor's delivery of such property.
(ii) Title to all other property, the cost of which is reimbursable to the Contractor, shall pass to and vest in the Government upon—
(A) Issuance of the property for use in contract performance;
(B) Commencement of processing of the property for use in contract performance; or
(C) Reimbursement of the cost of the property by the Government, whichever occurs first.
You can see here that if in fact the contractor has not received the material, issued for use in contract performance, commenced processing, or been reimbursed for the cost; then the Government has not taken title; therefore, the contractor is not bound to the requirements of FAR 52.245-1 and the PA has no authority to include those items in the audit.
FAR 45.105 Contractors’ property management system compliance.
a) The agency responsible for contract administration shall conduct an analysis of the contractor’s property management policies, procedures, practices, and systems. This analysis shall be accomplished as frequently as conditions warrant, in accordance with agency procedures.
FAR 52.245-1(g) Systems analysis. (1) The Government shall have access to the contractor's premises and all Government property, at reasonable times, for the purposes of reviewing, inspecting and evaluating the Contractor's property management plan(s), systems, procedures, records, and supporting documentation that pertains to Government property. This access includes all site locations and, with the Contractor’s consent, all subcontractor premises.
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