(a) Requirement. A DoD Component's general terms and conditions must address the standards for States' property management systems.
(b) Award terms and conditions. A DoD Component's general terms and conditions therefore must either:
(1) Include the wording appendix B to this part provides for Section B of PROP Article II; or
(2) Reserve Section B of PROP Article II if no State will acquire or improve equipment, in whole or in part, or be accountable for federally owned property under awards using those general terms and conditions or subawards under those awards.