In what situation must a contractor maintain an approved property management system?

A contractor must maintain an approved property management system when they have received government property. This requirement ensures that the contractor has the necessary controls and processes in place to properly manage, track, and safeguard government property in their possession. An approved property management system is a crucial component in maintaining accountability and preventing loss, damage, or misuse of government assets.

The establishment of such a system is tied to the contractor's responsibility for the care and control of government property, which is critical in ensuring compliance with federal regulations and contract stipulations. The effective management of this property contributes to the overall integrity of the contracting process and safeguards taxpayer interests.

In contrast, the other options deal with contract processes but do not specifically address the management of government property. For example, having a property management system is not contingent upon submitting a contract proposal, as the requirement is triggered by the actual receipt of government property. Similarly, maintaining a property management system is not limited to contract negotiations or specific contract value thresholds; rather, it is directly related to the contractor’s involvement with government property.