Notice2021-27241
Information Collection; Subcontract Consent and Contractors' Purchasing System Review
Primary source
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Published
December 16, 2021
Issuing agencies
Defense DepartmentGeneral Services AdministrationNational Aeronautics and Space Administration
Abstract
In accordance with the Paperwork Reduction Act of 1995, and the Office of Management and Budget (OMB) regulations, DoD, GSA, and NASA invite the public to comment on a revision concerning subcontract consent and Contractors' Purchasing System Review. DoD, GSA, and NASA invite comments on: Whether the proposed collection of information is necessary for the proper performance of the functions of Federal Government acquisitions, including whether the information will have practical utility; the accuracy of the estimate of the burden of the proposed information collection; ways to enhance the quality, utility, and clarity of the information to be collected; and ways to minimize the burden of the information collection on respondents, including the use of automated collection techniques or other forms of information technology. OMB has approved this information collection for use through February 28, 2022. DoD, GSA, and NASA propose that OMB extend its approval for use for three additional years beyond the current expiration date.
Full Text
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<title>Federal Register, Volume 86 Issue 239 (Thursday, December 16, 2021)</title>
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[Federal Register Volume 86, Number 239 (Thursday, December 16, 2021)]
[Notices]
[Pages 71499-71500]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-27241]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
[OMB Control No. 9000-0149; Docket No. 2021-0053; Sequence No. 15]
Information Collection; Subcontract Consent and Contractors'
Purchasing System Review
AGENCY: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Notice and request for comments.
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SUMMARY: In accordance with the Paperwork Reduction Act of 1995, and
the Office of Management and Budget (OMB) regulations, DoD, GSA, and
NASA invite the public to comment on a revision concerning subcontract
consent and Contractors' Purchasing System Review. DoD, GSA, and NASA
invite comments on: Whether the proposed collection of information is
necessary for the proper performance of the functions of Federal
Government acquisitions, including whether the information will have
practical utility; the accuracy of the estimate of the burden of the
proposed information collection; ways to enhance the quality, utility,
and clarity of the information to be collected; and ways to minimize
the burden of the information collection on respondents, including the
use of automated collection techniques or other forms of information
technology. OMB has approved this information collection for use
through February 28, 2022. DoD, GSA, and NASA propose that OMB extend
its approval for use for three additional years beyond the current
expiration date.
DATES: DoD, GSA, and NASA will consider all comments received by
February 14, 2022.
ADDRESSES: DoD, GSA, and NASA invite interested persons to submit
comments on this collection through <a href="https://www.regulations.gov">https://www.regulations.gov</a> and
follow the instructions on the site. This website provides the ability
to type short comments directly into the comment field or attach a file
for lengthier comments. If there are difficulties submitting comments,
contact the GSA Regulatory Secretariat Division at 202-501-4755 or
<a href="/cdn-cgi/l/email-protection#f3b4a0b2a19694a09690b3948092dd949c85"><span class="__cf_email__" data-cfemail="3e796d7f6c5b596d5b5d7e594d5f10595148">[email protected]</span></a>.
Instructions: All items submitted must cite OMB Control No. 9000-
0149, Subcontract Consent and Contractors' Purchasing System Review.
Comments received generally will be posted without change to <a href="https://www.regulations.gov">https://www.regulations.gov</a>, including any personal and/or business
confidential information provided. To confirm receipt of your
comment(s), please check <a href="http://www.regulations.gov">www.regulations.gov</a>, approximately two-to-
three days after submission to verify posting.
FOR FURTHER INFORMATION CONTACT: Zenaida Delgado, Procurement Analyst,
at telephone 202-969-7207, or <a href="/cdn-cgi/l/email-protection#4f352a212e262b2e612b2a23282e2b200f283c2e61282039"><span class="__cf_email__" data-cfemail="7c0619121d15181d521819101b1d18133c1b0f1d521b130a">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
A. OMB Control Number, Title, and Any Associated Form(s)
9000-0149, Subcontract Consent and Contractors' Purchasing System
Review.
B. Need and Uses
This clearance covers the information that a contractor must submit
to comply with the requirements in Federal Acquisition Regulation (FAR)
52.244-2, Subcontracts, regarding consent to subcontract, advance
notification, and Contractors' purchasing system review as follows:
1. Consent to subcontract. This is the contracting officer's
written consent for the prime contractor to enter into a particular
subcontract. In order for the contracting officer responsible for
consent to make an informed decision, the prime contractor must submit
adequate information to ensure that the proposed subcontract is
appropriate for the risks involved and consistent with current policy
and sound business judgment. The review allows the Government to
determine whether the contractor's purchasing policies and practices
are efficient and adequately protect the Government's interests.
If the contractor has an approved purchasing system, consent is
required for subcontracts specifically identified by the contracting
officer in the subcontracts clause of the contract. The contracting
officer may require consent to subcontract if the contracting officer
has determined that an individual consent action is required to protect
the Government adequately because of the subcontract type, complexity,
or value, or because the subcontract needs special surveillance. These
can be subcontracts
[[Page 71500]]
for critical systems, subsystems, components, or services.
If the contractor does not have an approved purchasing system,
consent to subcontract is required for cost-reimbursement, time-and-
materials, labor-hour, or letter contracts, and also for unpriced
actions under fixed-price contracts that exceed the simplified
acquisition threshold.
2. Advance notification. Prime contractors must provide contracting
officers notification before the award of any cost-plus-fixed-fee
subcontract, or certain fixed-price subcontracts that are identified in
paragraph (b), (c) and (d) of FAR clause 52.244-2. This requirement for
advance notification is driven by statutory requirements in 10 U.S.C.
2306 and 41 U.S.C. 3905.
3. Contractors' Purchasing System Review. The objective of a
contractor purchasing system review (CPSR), is to evaluate the
efficiency and effectiveness with which a contractor spends Government
funds and complies with Government policy when subcontracting.
Paragraph (i) of FAR clause 52.244-2 specifies that the Government
reserves the right to review the contractor's purchasing system as set
forth in FAR subpart 44.3. This clause is the mechanism through which
the requirements of FAR subpart 44.3 are applied to contractors.
FAR 44.302 requires the administrative contracting officer (ACO) to
determine the need for a CPSR based on, but not limited to, the past
performance of the contractor, and the volume, complexity and dollar
value of subcontracts. If a contractor's sales to the Government
(excluding competitively awarded firm-fixed-price and competitively
awarded fixed-price with economic price adjustment contracts and sales
of commercial items pursuant to Part 12) are expected to exceed $25
million during the next 12 months, the ACO will perform a review to
determine if a CPSR is needed. Sales include those represented by prime
contracts, subcontracts under Government prime contracts, and
modifications. Generally, a CPSR is not performed for a specific
contract. The head of the agency responsible for contract
administration may raise or lower the $25 million review level if it is
considered to be in the Government's best interest. Once an initial
determination has been made to conduct a review, at least every three
years the ACO shall determine whether a purchasing system review is
necessary. If necessary, the cognizant contract administration office
will conduct a purchasing system review.
A CPSR is a thorough review of a contractor's existing procurement
policies, procedures, management control systems (including internal
audit procedures), and documentation. The review provides the ACO a
basis for granting, withholding, or withdrawing approval of a
contractor's purchasing system. An approved purchasing system allows
the contractor more autonomy in subcontracting actions. Without an
approved purchasing system more Government oversight is necessary, and
Government consent to subcontract is required. Generally, a CPSR is not
performed for a specific contract. Rather, CPSRs are conducted on
contractors based on the factors identified above. For example, the
Defense Contract Management Agency (DCMA) Contractor Purchasing System
Review Group is a group dedicated to conducting CPSRs for the
Department of Defense. As of fiscal year (FY) 2018, the group's review
workload included more than 500 contractors worldwide.
The cognizant ACO is responsible for granting, withholding, or
withdrawing approval of a contractor's purchasing system and for
promptly notifying the contractor of same (FAR 44.305-1).
Related administrative requirements are as follows: FAR 44.305-2(c)
requires that when recommendations are made for improvement of an
approved system, the contractor shall be requested to reply within 15
days with a position regarding the recommendations.
FAR 44.305-3(b) requires when approval of the contractor's
purchasing system is withheld or withdrawn, the ACO shall within 10
days after completing the in-plant review (1) inform the contractor in
writing, (2) specify the deficiencies that must be corrected to qualify
the system for approval, and (3) request the contractor to furnish
within 15 days a plan for accomplishing the necessary actions. If the
plan is accepted, the ACO shall make a follow-up review as soon as the
contractor notifies the ACO that the deficiencies have been corrected.
C. Annual Burden
Respondents: 4,154.
Total Annual Responses: 11,982.
Total Burden Hours: 58,273.
Obtaining Copies: Requesters may obtain a copy of the information
collection documents from the GSA Regulatory Secretariat Division, by
calling 202-501-4755 or emailing <a href="/cdn-cgi/l/email-protection#aee9fdeffccbc9fdcbcdeec9ddcf80c9c1d8"><span class="__cf_email__" data-cfemail="de998d9f8cbbb98dbbbd9eb9adbff0b9b1a8">[email protected]</span></a>. Please cite OMB
Control No. 9000-0149, Subcontract Consent and Contractors' Purchasing
System Review.
Janet Fry,
Director, Federal Acquisition Policy Division, Office of Governmentwide
Acquisition Policy, Office of Acquisition Policy, Office of
Governmentwide Policy.
[FR Doc. 2021-27241 Filed 12-15-21; 8:45 a.m.]
BILLING CODE 6820-EP-P
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