bulgheroni

Thanks for your comments on the subject. Other than the absence of 52.244-2, the subcontracts I am concerned with clearly meet the criteria for belonging in the CPSR universe, i. e. they are under primes other than competitively awarded FFP or FFP-EPA, and they are not awarded under commercial item primes. Such subcontracts missing the Subcontracts clause (for no apparent reason) are not numerous, but there are some, and our staff is citing that as the only reason for exclusion. If it makes any difference, our company does have a longstanding approved purchasing system. I am still not getting an answer to my question, which is, are there indeed other companies in the industry, who are currently awarding subcontracts and are subject to purchasing system reviews, who are using this specific reason to exclude subcontracts from the CPSR universe? And if so, what is the basis for that decision? I would like to hear the reasoning from someone who is actually doing it.

Correct, our company was indeed recently selected for CPSR, and the subcontracts coded as exempt, some of which are in the class I described, were not included in the universe. We do not otherwise treat our subcontract differently; all subcontracts are documented the same way, subject to the requirements of each prime contract. I believe the company is endeavoring to minimize the risk of CPSR criticism by seeking to exclude everything from the universe that is legitimately exempt, but it seems we are overstepping that definition based on the dubious interpretation of the clause. Items you mention in your last paragraph are not coming into play here. Please explain how you say, "legally it's not wrong", when the subcontracts in question do not meet the exclusion criteria of FAR 44.303? I am seeking to find if any guidance from any authoritative official source exists, which says or suggests that the absence of the Subcontracts clause allows exclusion of such subcontracts from the CPSR universe. Thanks

My company believes that if a prime contract does not contain the clause 52.244-2 "Subcontracts", then all subcontracts awarded under that prime are exempt from purchasing system review under FAR Part 44. This has been enshrined in our policy, and even contains the guidance to contact the Contracting Officer when the clause is omitted, to ensure that the omission is intentional. The reason given is that FAR 52,244-2(i) says "The Government reserves the right to review the Contractor’s purchasing system as set forth in FAR Subpart 44.3". I contend that the absence of this line in the contract does not create any such automatic exemption. I have been unable to locate, within in the FAR, any acquisition supplements or any other contracting resources, any support for the company's position. Is anyone else observing this exemption, and if so what is the basis for it?