[Federal Register Volume 86, Number 239 (Thursday, December 16, 2021)]
[Notices]
[Pages 71499-71500]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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 https://www.regulations.gov 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 
[email protected].
    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 https://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.

FOR FURTHER INFORMATION CONTACT: Zenaida Delgado, Procurement Analyst, 
at telephone 202-969-7207, or [email protected].

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 [email protected]. 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.]
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