Clauses · DFARS · Government property
DFARS 252.245-7003 Contractor Property Management System Administration
Does the regulation require it to flow down?
No
There is no regulatory requirement to insert 252.245-7003 in a subcontract: it has no flow-down paragraph and 245.107(3) prescribes it for solicitations and contracts. Primes flow it down anyway for a structural reason worth understanding — (c) makes the system criteria the ones in FAR 52.245-1(b) and (f), and FAR 52.245-1(b)(3) DOES require the prime to push the requirements of the Government Property clause into every subcontract under which Government property is acquired or furnished. Inserting 7003 is how a prime makes the grading regime itself — material weakness determination, 30 days to respond, 45 days to correct, withholding — reach the sub on whose floor the property is actually sitting. 7 of 43 corpus documents do it, including both L3Harris LGL-50 templates (Feb 2026), both GDMS non-commercial templates (2026-07-20), the Raytheon TC003 supplement and RTX's November 2024 list.
A clause can reach your subcontract without a mandate. Once it is in your document, it is a contract term all the same. The missing mandate is a fact about the regulation. It is not a ruling on your order.
Checked against acquisition.gov on 2026-08-05 · edition JAN 2025 (no alternates; page compiled at DFARS Change 5/7/2026, effective 2026-05-07) · base v0.9.3 Read the text ↗
What it makes you produce
3 items for your checklist, slowest first.
A program you have to be running
You are either running it or you are not, and what the prime asks for is the date it started.
An acceptable property management system — records, receipt and identification, physical inventories, loss reporting, maintenance and disposition, to the criteria in FAR 52.245-1(b) and (f)
DFARS 252.245-7003(b)
Something you write2
Days to weeks, and nobody outside your company has to agree to it.
- DFARS 252.245-7003(d)(2)
A written response within 30 days, stating your rationale where you disagree
Owed when the contracting officer issues an initial determination that the system has material weaknesses
- DFARS 252.245-7003(e)
A corrective action plan showing milestones and actions, within 45 days, unless the weaknesses are corrected inside that time
Owed on receipt of the contracting officer's final determination of material weaknesses
When it is used
One condition, from DFARS 245.107(3): 'Use the clause at 252.245-7003, Contractor Property Management System Administration, in solicitations and contracts containing the clause at FAR 52.245-1, Government Property.' No dollar threshold, no contract-type restriction, no commercial carve-in — 245.107(3) is the only paragraph in 245.107 that does NOT extend itself to FAR part 12 acquisitions, unlike (1)'s repair/maintenance rule and (4)'s express part 12 language for 252.245-7005. The corpus states the test in the same words: L3Harris LGL-50 F1 (Feb 2026) reads '252.245-7003 Contractor Property Management System Administration (applies if the Order includes FAR 52.245-1)'. FAR 45.107 in turn puts 52.245-1 into cost-reimbursement and T&M contracts always, into fixed-price contracts when Government property is provided, and into commercial acquisitions when the property exceeds the simplified acquisition threshold. The withholding machinery in (f) only operates if the contract also contains DFARS 252.242-7005, Contractor Business Systems.
Read closely
(c) sends the system criteria to FAR 52.245-1(b) and (f), so the checklist is that clause's rather than this one's. The two clocks in (d)(2) and (e) are where a fixable finding turns into a disapproval on the record. (f) attaches the money: where the contract also carries DFARS 252.242-7005, a disapproved system means payments withheld under that clause — without it the grading still happens and the withholding lever does not exist.
The 6 templates that name it, with the line
Source: acquisition.gov, DFARS 252.245-7003, DFARS 245.107(3), DFARS 212.301(f), FAR 52.245-1 and FAR 45.107 (verified 2026-08-05)
This is research, not legal advice. It states what the regulation says about this clause and cites the paragraph behind it. It does not rule on your order, and it does not rule on whether a prime's markings are correct.