[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR45]

[Page 809]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 45--GOVERNMENT PROPERTY--Table of Contents
 
                          Subpart 45.1--General
 
45.104  Review and correction of contractors' property control systems.

    (a) The review and approval of a contractor's property control 
system shall be accomplished by the agency responsible for contract 
administration at a contractor's plant or installation. The review and 
approval of a contractor's property control system by one agency shall 
be binding on all other departments and agencies based on interagency 
agreements.
    (b) The contracting officer or the representative assigned the 
responsibility as property administrator shall review contractors' 
property control systems to assure compliance with the Government 
property clauses of the contract.
    (c) The property administrator shall notify the contractor in 
writing when its property control system does not comply with subpart 
45.5 or other contract requirements and shall request prompt correction 
of deficiencies. If the contractor does not correct the deficiencies 
within a reasonable period, the property administrator shall request 
action by the contracting officer administering the contract. The 
contracting officer shall--
    (1) Notify the contractor in writing of any required corrections and 
establish a schedule for completion of actions;
    (2) Caution the contractor that failure to take the required 
corrective actions within the time specified will result in withholding 
or withdrawing system approval; and
    (3) Advise the contractor that its liability for loss of or damage 
to Government property may increase if approval is withheld or 
withdrawn.