[Federal Register Volume 83, Number 232 (Monday, December 3, 2018)]
[Notices]
[Pages 62321-62322]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26165]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

[OMB Control No. 9000-0149; Docket No. 2018-0003; Sequence No. 16]


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 will be submitting to the Office of 
Management and Budget (OMB) a request to review and approve an 
extension of a previously approved information collection requirement 
concerning consent to subcontract, advance notification, and 
Contractors' purchasing system review.

DATES: Submit comments on or before January 2, 2019.

ADDRESSES: Submit comments regarding this burden estimate or any other 
aspect of this collection of information, including suggestions for 
reducing this burden to: Office of Information and Regulatory Affairs 
of OMB, Attention: Desk Officer for GSA, Room 10236, NEOB, Washington, 
DC 20503. Additionally submit a copy to GSA by any of the following 
methods:
     Federal eRulemaking Portal: This website provides the 
ability to type short comments directly into the comment field or 
attach a file for lengthier comments. Go to http://www.regulations.gov 
and follow the instructions on the site.
     Mail: General Services Administration, Regulatory 
Secretariat Division (MVCB), 1800 F Street NW, Washington, DC 20405. 
ATTN: Ms. Mandell/IC 9000-0149, Subcontract Consent and Contractors' 
Purchasing System Review.
    Instructions: All items submitted must cite Information Collection 
9000-0149, Subcontract Consent and Contractors' Purchasing System 
Review.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal and/or business 
confidential information provided. To confirm receipt of your 
comment(s), please check www.regulations.gov, approximately two to 
three days after submission to verify posting (except allow 30 days for 
posting of comments submitted by mail).

FOR FURTHER INFORMATION CONTACT: Ms. Mahruba Uddowla, Procurement 
Analyst, at telephone 703-605-2868, or email [email protected].

SUPPLEMENTARY INFORMATION: 

A. Purpose

    This information collection requirement, OMB Control No. 9000-0149, 
currently titled ``Subcontract Consent,'' is proposed to be retitled 
``Subcontract Consent and Contractors' Purchasing System Review,'' due 
to consolidation with currently approved information collection 
requirement OMB Control No. 9000-0132, Contractors' Purchasing System 
Review.
    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. 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. 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

[[Page 62322]]

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 provides the administrative contracting officer (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.
    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.

B. Public Comment

    A notice was published in the Federal Register at 83 FR 42651, on 
August 23, 2018. No comments were received.

C. Annual Reporting Burden

    The burden estimates provided in the notice published in the 
Federal Register at 83 FR 42651, on August 23, 2018, have been adjusted 
to reflect current, relevant data and appropriate methodology.
    1. Consent to subcontract.
    Respondents: 2,053.
    Responses per Respondent: 3.
    Total Annual Responses: 6,159.
    Hours per Response: 3.
    Total Burden Hours: 18,477.
    2. Advance notification.
    Respondents: 1,336.
    Responses per Respondent: 3.
    Total Annual Responses: 4,008.
    Hours per Response: 0.25.
    Total Burden Hours: 1,002.
    3. Contractors' Purchasing System Review.
    Respondents: 240.
    Responses per Respondent: 1.
    Total Annual Responses: 240.
    Hours per Response: 160.
    Total Burden Hours: 38,400.
    4. Summary.
    Respondents: 3,629.
    Total Annual Responses: 10,407.
    Total Burden Hours: 57,879.
    Affected Public: Businesses or other for-profit and not-for-profit 
institutions.
    Obtaining Copies: Requesters may obtain a copy of the information 
collection documents from the General Services Administration, 
Regulatory Secretariat Division (MVCB), 1800 F Street NW, Washington, 
DC 20405, telephone 202-501-4755. Please cite OMB Control No. 9000-
0149, Subcontract Consent and Contractors' Purchasing System Review, in 
all correspondence.

    Dated: November 27, 2018.
Janet Fry,
Director, Federal Acquisition Policy Division, Office of Governmentwide 
Acquisition Policy, Office of Acquisition Policy, Office of 
Governmentwide Policy.
[FR Doc. 2018-26165 Filed 11-30-18; 8:45 am]
 BILLING CODE 6820-EP-P