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Do you know of any defense contractor(s) that have excluded any interorganizational transfers from the population submitted to DCMA for CPSR review? If so, did they go so far as to exclude interorganizational transfers at price for commercial items? Do you think it is reasonable for a defense contractor to interpret FAR 44.101 and FAR 44.303 to allow for exclusion of any (or all) interorganizational transfers (at price or cost)?

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Interesting question. Clearly the definitions in Part 44 control but if they are unclear you can look to other Parts of the FAR to help interpret (says I).

FAR 15.407-2( B) states that SOME IOTs are "make" and not "buy" (but some are (see 15.401 definition of a subcontract)). You could argue that the "make" IOTs are exempt from CPSR review but I think any purchases made by the IOT performer would be subject to CPSR review.

Hmmm. If you exclude the "make" IOTs as well as any underlying purchases, I think you would be understating the review universe by the amount of purchases made by the IOT performer.

But that's just an opinion. I've never seen/heard it discussed.

Ultimately you need to decide your position, and grounding yoru position in what other contractors do or don't do is probably not the best practice. Sometimes the herd does not provide sufficient protection.

H2H

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H2H,

Yes, it makes sense that the underlying purchases of the IOT performer would be subject to CPSR review. Here is a quote from the following blog: http://procurelinx.com/blogs/lessons-learned-eventually-successful-cpsr

The contractor did not automate their data call response based on DCMA-imposed rules of exclusion; the entire data call process was manual. As a result, several orders under GSA contracts were included in the review along with some high dollar value orders awarded to a contractor affiliate. These incorrectly included high dollar value orders resulted in several public law deficiencies. [emphsis added]

I wish there was a clear-cut rule from DCMA at the higher-level CPSR review to either 1) Exclude all lower-level IOTs, 2) Exclude all IOTs for non-commercial items, or 3) Include all IOTs.

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