[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 803]
 
            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.  44.305-3  Withholding or withdrawing approval.

    (a) The ACO shall withhold or withdraw approval of a contractor's 
purchasing system when there are major weaknesses or when the contractor 
is unable to provide sufficient information upon which to make an 
affirmative determination. The ACO may withdraw approval at any time on 
the basis of a determination that there has been a deterioration of the 
contractor's purchasing system or to protect the Government's interest. 
Approval shall be withheld or withdrawn when there is a recurring 
noncompliance with requirements, including but not limited to--
    (1) Cost or pricing data (see 15.403);
    (2) Implementation of cost accounting standards (see 48 CFR chapter 
99 (Appendix B, FAR loose-leaf edition);
    (3) Advance notification as required by the clauses prescribed in 
44.204; or
    (4) Small business subcontracting (see subpart 19.7).
    (b) 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or withdrawn, the ACO shall within 10 days after completing the in-plant 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.

[48 FR 42388, Sept. 19, 1983, as amended at 59 FR 67043, Dec. 28, 1994; 
62 FR 51271, Sept. 30, 1997]