Should the proposed subcontractor’s purchasing system has not been reviewed, the contractor shall be so recommended.
Much forty four.302 states that the administrative contracting officer (ACO) shall decide the necessity for any CPSR according to, although not restricted to, the earlier performance with the contractor, and the quantity, complexity and dollar worth of subcontracts. If a contractor’s profits to the Government (excluding competitively awarded organization-fixed-cost and competitively awarded fastened-price with financial cost adjustment contracts and income of commercial provides and industrial expert services pursuant to portion 12) are expected to exceed $25 million over the subsequent 12 months, the ACO is usually to conduct a review to ascertain if a CPSR is necessary.
If the proposed subcontractor’s purchasing system hasn't been reviewed, the contractor shall be so encouraged.
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(a) Approve a purchasing system only right after deciding that the contractor’s purchasing insurance policies and practices are efficient and supply satisfactory protection of The federal government’s interests; and
(a) The ACO shall keep a ample degree of surveillance to make sure that the contractor is proficiently controlling its purchasing system.
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The Contractor shall establish and keep an appropriate purchasing system. check out this site Failure to maintain an acceptable purchasing system, as defined With this clause, might cause disapproval of your system from the Contracting Officer and/or withholding of payments.
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This subpart prescribes the policies limiting the deal clauses a contractor may very well be needed to implement to any subcontractors that happen to be furnishing professional items, which includes commercial factors, or business providers in accordance with forty one U.S.C. 3307.
Beneath Value-reimbursement contracts, the contractor is required by statute to inform the contracting officer as follows:
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