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Found 13 results

  1. Our company has multiple Phase III SBIR IDIQ contracts through GSA, each of which can be used by DoD components to award FFP, FFP LoE, or T&M Task Orders. The TOs are negotiated using Alpha contracting processes, and are sole-source awards. The government’s requirement(s) for competition were met in the Phase I and Phase II awards under the SBIR program. The IDIQ solicitation and contract, and the resulting TOs, include the Subcontracting clauses 52.244-5 Competition in Subcontracting, 52.244-2, Subcontracts, as well as DFARS 252.244-7001 Contractor Purchasing System Administration. Subcontract purchases under these TOs require consent to purchase, as we are still in the process of setting up, but do not yet have, a CPSR-reviewed and approved purchasing system. Refer to the thread CPSR driven by FAR 52-244-2? for the kind of logic I want to apply to make sure we get all relevant contracts and subcontracts into the population of CPSR-reviewable purchases (and exclude those that don't need reviewed). Are the subcontracts and purchase orders for TOs that are firm, fixed-price subject to the CPSR? The two sides of the argument: IN: Since the TOs are not competitively awarded FFP TOs, their subcontracts and purchase orders would be subject to a CPSR. OUT: The IDIQ, however, did fulfill the government’s requirements for competition, and the SBIR law says the awards should be considered to satisfy the requirements for competition. So perhaps the FFP TOs, and their subcontracts and purchases, should be excluded from the CPSR population? On which side of the fence should we come down? Are the FFP TOs in or out of the CPSR population? Thanks all!
  2. Hello all, I have recently moved from a DoD contractor to an NGO without an Approved Purchasing System. This has not been an impediment for them, as they have only performed as a subcontractor under a handful of USAID prime contracts. However, there is interest in expanding their contracts portfolio and a desire to move beyond subcontracting into prime contracting. As that is the case, I have begun the process of determining how prepared we are as an organization for a CPSR audit. So far, it looks pretty grim. Little to no file documentation, no price/cost analysis being performed, policies and procedures exist but are likely insufficient or require revision, etc.. My question for the forum is: what is a *reasonable* estimate of level of effort to get a large (~$900M per year) NGO in a position to not get blown out of the water by a CPSR auditor? My extremely conservative estimate right now is 500 hours spread out across the org, but I think that is probably too low. Does anyone out there have experience in doing this? I know there are a number of consultancies out there that specialize in this, but as a non-profit that is already cost adverse due to some large IT investments in recent years, I suspect that leadership is going to want to keep this process in house as much as possible. Any and all feedback/advice/etc. would be appreciated.
  3. What should we do to ensure performance from a company that just lost approval of their purchasing system as a result of a recent CPSR? Is requesting "Assurance of Performance" sufficient, or should we do something else?
  4. My company recently passed our first CPSR. However, during the audit, DCMA informed us that if our prime contract is issued under FAR Part 15, all required flowdown clauses are applicable to the procurement of commercial items under the contract, regardless of FAR 521.244-6 being included. This requirement has resulted in many difficulties with commercial vendors accepting all of the required government flow downs contained in our prime contracts. Their reluctance to accept these terms and conditions are causing major delays in receiving parts, thereby impacting critical program and project schedules. Our position as to why only FAR 52.244-6 needs to be flowed down in Commercial Item Procurements is defined below: FAR 52.244-6(2) states “While not required, the Contractor may flow down to subcontracts for commercial items a minimal number of additional clauses necessary to satisfy its contractual obligations”. The list that we have is not considered minimal. FAR Part 44.402(b) states “The clause at 52.244-6, Subcontracts for Commercial Items, implements the policy in paragraph (a) of this section. Notwithstanding any other clause in the prime contract, only those clauses identified in the clause at 52.244-6 are required to be in subcontracts for commercial items or commercial components.” FAR 44.402(c) states “Agencies may supplement the clause at 52.244-6 only as necessary to reflect agency unique statutes applicable to the acquisition of commercial items.” I personally have never seen this clause modified by an Agency. If it is a requirement to flow down all of the FAR Part 15 clauses in our prime contract, why does the government have clause 52.244-6? Additionally, this clause states “the contractor may flow down, it does not state we shall flow down a minimal number of additional clauses. FAR 44.403 states “The contracting officer shall insert the clause at 52.244-6, Subcontracts for Commercial Items, in solicitations and contracts other than those for commercial items. This leads us to believe that the government’s intent is not for the prime contractors to flow down all the FAR Part 15 mandatory clauses in commercial subcontracts. Our commercial vendors do not want to accept all the mandatory flow down clauses from our prime contract, as they are small and cannot afford legal counsel to review and negotiate them with us. In summary, the flow down of all of these clauses defeats the purpose of the Government purchasing commercial items. Please advise if other professionals have encountered this situation, and what steps it took to resolve the matter. DCMA has not responded to our request for assistance and relief of this requirement.
  5. Hello my Contract and Subcontract friends! It seems a pretty important update/change to the FAR escaped my notice. I'm curious how you all stay updated on the many evolving rules/regulations/best practices/etc. Any advice is appreciated!
  6. 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?
  7. My company is interested in setting up CPSR-compliant policies and procedures. In my previous lives, I have tracked compliance actions (ie, EEO, TINA, Reps and Certs, etc) at the subcontract level (covering all subsequent Task Orders) and I've also done it on a per Task Order basis. I think each have their own unique pros and cons. I have my own preference but would like to hear the experience/thoughts of others. Thanks!
  8. For those of you who have had recent annual surveillances by your ACO/CACO (or delegate)... (1) how many PO files have they requested? 2) how formal has the surveillance process been (e.g., is there a report, expectation of a reply, and a final determination)?, and 3) how long has the reviews lasted (e.g., # of days, # of weeks, # of months)? Thank you for your help!
  9. Brief Background: Our DCMA/CACO requested hard-copy of 45 PO files (initially requested 70) in preparation for a surveillance review. We have an approved purchasing system that is 100% electronic/paperless. We've had a paperless SAP system since 2011. Question: Is there a regulation or guidance that supports the DCMA/CACO request? If, No... how would you suggest we respond to our CACO without upsetting him? He has threaten to recommend a full CPSR if we do not provide the hard-copy PO files.
  10. I have a substantial CPFF Contract awarded to my company at one location. We have a location in a different state (different cage code etc.) that will work on the contract as well via an IOT. The out of state location has an approved purchasing system whereas my location does not. The out of state location is planning to issue a subcontract. Keeping in mind, the contract was issued to my location without the approved purchasing system which ACO gets the notification/consent request? Mine or the one at the other company location. Also, is consent required or advanced notification? (if issued from my purchasing department at my location definitely requires consent.) There's NRE in the subcontract, otherwise its FFP and its in access of 5% contract value.
  11. 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)?
  12. An article of mine titled "Contractor Purchasing System Reviews - Not So Different from 1991" was published in the May issue of Contract Management magazine. My contention is that CPSRs are pretty much the same today as they were in 1991 when NCMA published my first article about CPSRs. I would appreciate feedback from anyone reading the article about my positions on source selection, price reasonableness and clause flow down.
  13. Hello, It appears that DCMA has taken down the link which leads to the DCMA guidebook on Contractor Purchasing System Reviews (CPSR). http://guidebook.dcma.mil/26/guidebook_process.htm Does anyone have a soft copy that they can send me or know of a different location to download the guidebook? I am helping my company prepare for an upcoming CPSR and believe that this guidbook would be tremendously useful. I have seen a number of CPSR briefings which claim that Appendix B of the guidebook has 55 key topic areas which DCMA auditors expect to be covered as part of a contractor's policies and procedures. It is my understanding that DCMA auditors will review a contractor's policies and procedures to gauge whether the 55 areas have been adequately covered. If anyone has taken any classes related to CPSR preparation and has recommendations, I would certainly be interested in hearing your story. Thanks in advance for your time! Jimmie
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