[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR44.303]

[Page 801-802]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 44_SUBCONTRACTING POLICIES AND PROCEDURES--Table of Contents
 
          Subpart 44.3_Contractors' Purchasing Systems Reviews
 
Sec.  44.303  Extent of review.

    A CPSR requires an evaluation of the contractor's purchasing system. 
Unless segregation of subcontracts is impracticable, this evaluation 
shall not include subcontracts awarded by the contractor exclusively in 
support of Government contracts that are competitively awarded firm-
fixed-price, competitively awarded fixed-price with economic price 
adjustment, or awarded for commercial items pursuant to part 12. The 
considerations listed in 44.202-2 for consent evaluation of particular 
subcontracts also shall be used to evaluate the contractor's purchasing 
system, including the contractor's policies, procedures, and performance 
under that system. Special attention shall be given to--
    (a) The degree of price competition obtained;
    (b) Pricing policies and techniques, including methods of obtaining 
accurate, complete, and current cost or pricing data and certification 
as required;
    (c) Methods of evaluating subcontractor responsibility, including 
the contractor's use of the List of Parties Excluded from Federal 
Procurement and Nonprocurement Programs (see 9.404) and, if the 
contractor has subcontracts with parties on the list, the documentation, 
systems, and procedures the contractor has established to protect the 
Government's interests (see 9.405-2).
    (d) Treatment accorded affiliates and other concerns having close 
working arrangements with the contractor;

[[Page 802]]

    (e) Policies and procedures pertaining to small business concerns, 
including small disadvantaged and women-owned small business concerns;
    (f) Planning, award, and postaward management of major subcontract 
programs;
    (g) Compliance with Cost Accounting Standards in awarding 
subcontracts;
    (h) Appropriateness of types of contracts used (see 16.103); and
    (i) Management control systems, including internal audit procedures, 
to administer progress payments to subcontractors.

[48 FR 42388, Sept. 19, 1983, as amended at 52 FR 9039, Mar. 20, 1987; 
54 FR 19827, May 8, 1989; 60 FR 33066, June 26, 1995; 60 FR 48264, Sept. 
18, 1995; 62 FR 12719, Mar. 17, 1997; 63 FR 70288, Dec. 18, 1998]