. The Contractor shall establish and preserve an acceptable purchasing system. Failure to take care of an acceptable purchasing system, as described Within this clause, may possibly end in disapproval with the system with the Contracting Officer and/or withholding of payments.
(a) When the contractor has an approved purchasing system, consent is necessary for subcontracts precisely identified by the contracting officer inside the subcontracts clause with the agreement. The contracting officer may perhaps require consent to subcontract In case the contracting officer has established that somebody consent action is necessary to guard The federal government adequately as a result of subcontract sort, complexity, or value, or since the subcontract wants special surveillance.
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Significantly forty four.302 necessitates the administrative contracting officer (ACO) to determine the necessity for the Contractors' Purchasing System Review (CPSR) depending on, although not limited to, the previous effectiveness from the contractor, and the amount, complexity and greenback price of subcontracts. If a contractor's income to the Government (excluding competitively awarded agency-set-cost and competitively awarded set-selling price with economic rate adjustment contracts and revenue of economic products and solutions and industrial products and services pursuant to section 12) are envisioned to exceed $25 million during the future 12 months, the ACO will conduct a review to find out if a CPSR is needed. Gross sales incorporate Individuals represented by prime contracts, subcontracts underneath Authorities key contracts, and modifications.
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The objective of a CPSR is to find out if a contractor’s purchasing system and connected interior controls adjust to applicable regulations and restrictions, are powerful over compliance with applicable guidelines and laws, and they are satisfactory and working efficiently.
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(7) Use competitive sourcing to the maximum extent practicable, and make certain debarred or suspended contractors are properly excluded from contract award;
(a) Approve a purchasing system only right after determining that the contractor’s purchasing insurance policies and procedures are productive and supply enough protection of The federal government’s interests; and
(a) The ACO shall maintain a sufficient degree of surveillance to make sure that the contractor is successfully running its purchasing application.
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