[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]

[Page 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.  44.305-2  Notification.

    (a) The notification granting system approval shall include--
    (1) Identification of the plant or plants covered by the approval;
    (2) The effective date of approval; and
    (3) A statement that system approval--
    (i) Applies to all Federal Government contracts at that plant to the 
extent that cross-servicing arrangements exist;
    (ii) Waives the contractual requirement for advance notification in 
fixed-price contracts, but not for cost-reimbursement contracts;
    (iii) Waives the contractual requirement for consent to subcontracts 
in fixed-price contracts and for specified subcontracts in cost-
reimbursement contracts but not for those subcontracts, if any, selected 
for special surveillance and identified in the contract Schedule; and
    (iv) May be withdrawn at any time at the ACO's discretion.
    (b) In exceptional circumstances, consent to certain subcontracts or 
classes of subcontracts may be required even though the contractor's 
purchasing system has been approved. The system approval notification 
shall identify the class or classes of subcontracts requiring consent. 
Reasons for selecting the subcontracts include the fact that a CPSR or 
continuing surveillance has revealed sufficient weaknesses in a 
particular area of subcontracting to warrant special attention by the 
ACO.
    (c) 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.

[48 FR 42388, Sept. 19, 1983, as amended at 62 FR 12719, Mar. 17, 1997]

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