Notice2022-03566
Submission for OMB Review; Subcontract Consent and Contractors' Purchasing System Review
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 18, 2022
Issuing agencies
Defense DepartmentGeneral Services AdministrationNational Aeronautics and Space Administration
Abstract
Under the provisions of the Paperwork Reduction Act, the Regulatory Secretariat Division has submitted to the Office of Management and Budget (OMB) a request to review and approve an extension of a previously approved information collection requirement regarding subcontract consent and Contractors' Purchasing System Review.
Full Text
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<title>Federal Register, Volume 87 Issue 34 (Friday, February 18, 2022)</title>
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[Federal Register Volume 87, Number 34 (Friday, February 18, 2022)]
[Notices]
[Pages 9354-9355]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-03566]
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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]
Submission for OMB Review; 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.
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SUMMARY: Under the provisions of the Paperwork Reduction Act, the
Regulatory Secretariat Division has submitted to the Office of
Management and Budget (OMB) a request to review and approve an
extension of a previously approved information collection requirement
regarding subcontract consent and Contractors' Purchasing System
Review.
DATES: Submit comments on or before March 21, 2022
ADDRESSES: Written comments and recommendations for this information
collection should be sent within 30 days of publication of this notice
to <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>. Find this particular information
collection by selecting ``Currently under Review--Open for Public
Comments'' or by using the search function.
Additionally, submit a copy to GSA 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.
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. If there are
difficulties submitting comments, contact the GSA Regulatory
Secretariat Division at 202-501-4755 or <a href="/cdn-cgi/l/email-protection#b1f6e2f0e3d4d6e2d4d2f1d6c2d09fd6dec7"><span class="__cf_email__" data-cfemail="13544052417674407670537460723d747c65">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: Zenaida Delgado, Procurement Analyst,
at telephone 202-969-7207, or <a href="/cdn-cgi/l/email-protection#19637c7778707d78377d7c757e787d76597e6a78377e766f"><span class="__cf_email__" data-cfemail="08726d6669616c69266c6d646f696c67486f7b69266f677e">[email protected]</span></a>.
[[Page 9355]]
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 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 Contractor Purchasing System Review
Group is a group dedicated to conducting CPSRs for the Department of
Defense.
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: 3,270.
Total Annual Responses: 9,330.
Total Burden Hours: 53,394.
D. Public Comment
A 60-day notice was published in the Federal Register at 86 FR
71499, on December 16, 2021. No comments were received.
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#4b0c180a192e2c182e280b2c382a652c243d"><span class="__cf_email__" data-cfemail="9fd8ccdecdfaf8ccfafcdff8ecfeb1f8f0e9">[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. 2022-03566 Filed 2-17-22; 8:45 am]
BILLING CODE 6820-EP-P
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</html>Indexed from Federal Register on February 18, 2022.
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