[Federal Register Volume 59, Number 248 (Wednesday, December 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30639]


[Federal Register: December 28, 1994]


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DEPARTMENT OF DEFENSE
DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 44

[FAC 90-23; FAR Case 90-53; Item XXX]
RIN 9000-AE22


Federal Acquisition Regulation; Contractors' Purchasing Systems 
Reviews

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed on a final rule revising 
the Federal Acquisition Regulation (FAR) concerning the procedures for 
performing Contractors' Purchasing Systems Reviews (CPSR). The revision 
and amendments help streamline the acquisition process, reduce 
contractor oversight, and eliminate or reduce regulatory burdens on 
both contracting officers and contractors. This regulatory action was 
not subject to Office of Management and Budget review under Executive 
Order 12866, dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Ms. Linda Klein at (202) 501-3775 in 
reference to this FAR case. For general information, contact the FAR 
Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAC 90-23, FAR case 90-53.

SUPPLEMENTARY INFORMATION

A. Background

    The proposed rule recommended revisions to FAR 44.302(b) and 
44.304(a) and (b). The revision to 44.302(b) extended the reasons a 
special review may be conducted to include a major change or deficiency 
in the contractor's policy, procedures, or key personnel and removed 
the parenthetical. The revision to FAR 44.304(a) removed the 
requirement for Administrative Contracting Officers (ACO's) to make an 
annual determination concerning whether to continue purchasing system 
approval based on formal surveillance, or to request a CPSR or special 
review as a basis for continuing or withdrawing approval. The revision 
to 44.304(b) substituted the words ``should include'' for the words 
``shall include'' when referring to what needs to be included in an 
ACO's surveillance plan, thus permitting the contracting officer more 
latitude and discretion in the development, approach and scope of the 
plan. In addition, the last sentence of 44.304(b) was removed as 
unnecessary.
    The proposed rule was published in the Federal Register at 55 FR 
42810, October 23, 1990, with a request for comments. Sixteen responses 
were received, consisting of eleven concurrences and no comment, and 
five comments. After evaluating the comments, the councils approved a 
change to the proposed rule. The last sentence in 44.304(b) was 
reinstated and revised to read: ``Duplicative reviews of the same areas 
by CPSR and other surveillance monitors should be avoided.'' The 
sentence also was revised to provide the contracting officer greater 
flexibility in cases where additional surveillance or special reviews 
are warranted.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not have a significant economic impact on a substantial 
number of small entities under the Regulatory Flexibility Act, 5 U.S.C. 
601, et seq., because the changes to FAR 44.302 and FAR 44.304 are 
designed to streamline the acquisition process, reduce contractor 
oversight, and to eliminate or reduce regulatory burdens on both 
contracting officers and contractors. No responses were received which 
commented on the proposed rule's Regulatory Flexibility Act statement.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose recordkeeping or information collection 
requirements, or collections of information from offerors, contractors, 
or members of the public which require the approval of the Office of 
Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 44

    Government procurement.

    Dated: December 7, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.

    Therefore, 48 CFR part 44 is amended as set forth below:

PART 44--SUBCONTRACTING POLICIES AND PROCEDURES

    1. The authority citation for 48 CFR part 44 continues to read as 
follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

    2. Section 44.302 is amended by revising paragraph (b) to read as 
follows:


44.302  Requirements.

* * * * *
    (b) A CPSR shall be conducted by the cognizant contract 
administration agency (see subpart 42.3) at least every 3 years for 
contractors that continue to meet the requirements of paragraph (a) of 
this section. This review may be accomplished at one time or on a 
continuing basis. A more frequent review cycle may be established if 
warranted and special reviews may be conducted when information reveals 
a deficiency or major change in the contractor's purchasing system, 
policy, procedures or key personnel.


44.304  [Amended]

    3. Section 44.304 is amended in paragraph (a) by removing the 
second sentence; and in paragraph (b) by removing in the second, third, 
and fourth sentences the word ``shall'' and inserting ``should'' in its 
place.

[FR Doc. 94-30639 Filed 12-27-94; 8:45 am]
BILLING CODE 6820-34-P