Information Collection; Subcontract Consent and Contractors' Purchasing System Review, 93291-93292 [2024-27599]

Agencies

• DEPARTMENT OF DEFENSE
• General Services Administration
• National Aeronautics and Space Administration

[Federal Register Volume 89, Number 228 (Tuesday, November 26, 2024)]
[Notices]
[Pages 93291-93292]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-27599]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

[OMB Control No. 9000-0149; Docket No. 2024-0053; Sequence No. 17]


Information Collection; Subcontract Consent and Contractors' 
Purchasing System Review

AGENCY: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Notice and request for comments.

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SUMMARY: In accordance with the Paperwork Reduction Act of 1995, and 
the Office of Management and Budget (OMB) regulations, DoD, GSA, and 
NASA invite the public to comment on an extension concerning 
subcontract consent and contractors' purchasing system review. DoD, 
GSA, and NASA invite comments on: whether the proposed collection of 
information is necessary for the proper performance of the functions of 
Federal Government acquisitions, including whether the information will 
have practical utility; the accuracy of the estimate of the burden of 
the proposed information collection; ways to enhance the quality, 
utility, and clarity of the information to be collected; and ways to 
minimize the burden of the information collection on respondents, 
including the use of automated collection techniques or other forms of 
information technology. OMB has approved this information collection 
for use through April 30, 2025. DoD, GSA, and NASA propose that OMB 
extend its approval for use for three additional years beyond the 
current expiration date.

DATES: DoD, GSA, and NASA will consider all comments received by 
January 27, 2025.

ADDRESSES: DoD, GSA, and NASA invite interested persons to submit 
comments on this collection through https://www.regulations.gov and 
follow the instructions on the site. This website provides the ability 
to type short comments directly into the comment field or attach a file 
for lengthier comments. If there are difficulties submitting comments, 
contact the GSA Regulatory Secretariat Division at 202-501-4755 or 
[email protected].
    Instructions: All items submitted must cite OMB Control No. 9000-
0149, Subcontract Consent and Contractors' Purchasing System Review. 
Comments received generally will be posted without change to https://www.regulations.gov, including any personal and/or business 
confidential information provided. To confirm receipt of your 
comment(s), please check www.regulations.gov, approximately two-to-
three days after submission to verify posting.

FOR FURTHER INFORMATION CONTACT: Zenaida Delgado, Procurement Analyst, 
at telephone 202-969-7207, or [email protected].

SUPPLEMENTARY INFORMATION:

A. OMB Control Number, Title, and Any Associated Form(s)

    9000-0149, Subcontract Consent and Contractors' Purchasing System 
Review.

B. Need and Uses

    This clearance covers the information that contractors must submit 
to comply with the requirements in the Federal Acquisition Regulation 
(FAR) clause at 52.244-2, Subcontracts, regarding consent to 
subcontract, advance notification, and contractors' purchasing system 
review as follows:
    1. Consent to subcontract. This is the contracting officer's 
written consent for the prime contractor to enter into a particular 
subcontract. In order for the contracting officer responsible for 
consent to make an informed decision, the prime contractor must submit 
adequate information to ensure that the proposed subcontract is 
appropriate for the risks involved and consistent with current policy 
and sound business judgment. Paragraph (e)(1) of the FAR clause at 
52.244-2, requires prime contractors to submit the following 
information:

[[Page 93292]]

    (i) A description of the supplies or services to be subcontracted.
    (ii) Identification of the type of subcontract to be used.
    (iii) Identification of the proposed subcontractor.
    (iv) The proposed subcontract price.
    (v) The subcontractor's current, complete, and accurate certified 
cost or pricing data and Certificate of Current Cost or Pricing Data, 
if required by other contract provisions.
    (vi) The subcontractor's Disclosure Statement or Certificate 
relating to Cost Accounting Standards when such data are required by 
other provisions of the contract.
    (vii) A negotiation memorandum reflecting--
    (A) The principal elements of the subcontract price negotiations;
    (B) The most significant considerations controlling establishment 
of initial or revised prices;
    (C) The reason certified cost or pricing data were or were not 
required;
    (D) The extent, if any, to which the Contractor did not rely on the 
subcontractor's certified cost or pricing data in determining the price 
objective and in negotiating the final price;
    (E) The extent to which it was recognized in the negotiation that 
the subcontractor's certified cost or pricing data were not accurate, 
complete, or current; the action taken by the Contractor and the 
subcontractor; and the effect of any such defective data on the total 
price negotiated;
    (F) The reasons for any significant difference between the 
Contractor's price objective and the price negotiated; and
    (G) A complete explanation of the incentive fee or profit plan when 
incentives are used. The explanation shall identify each critical 
performance element, management decisions used to quantify each 
incentive element, reasons for the incentives, and a summary of all 
trade-off possibilities considered.
    If the contractor has an approved purchasing system, consent is 
required for subcontracts specifically identified by the contracting 
officer in paragraph (d) of the FAR clause at 52.244-2. The contracting 
officer may require consent to subcontract if the contracting officer 
has determined that an individual consent action is required to protect 
the Government adequately because of the subcontract type, complexity, 
or value, or because the subcontract needs special surveillance. These 
can be subcontracts for critical systems, subsystems, components, or 
services.
    If the contractor does not have an approved purchasing system, 
consent to subcontract is required for cost-reimbursement, time-and-
materials, labor-hour, or letter contracts, and also for unpriced 
actions under fixed-price contracts that exceed the simplified 
acquisition threshold.
    Contracting Officers use the information to ensure contractors' 
compliance with Government policy when subcontracting.
    2. Advance notification. Paragraph (e)(1) of the FAR clause at 
52.244-2 requires contractors to notify the contracting officer 
reasonably in advance of placing any subcontract or modification 
thereof for which consent is required under paragraph (b), (c), or (d) 
of the clause.
    Contracting Officers use the information to ensure compliance with 
the statutory requirements in 10 U.S.C. 3322(c) and 41 U.S.C. 3905.
    3. Contractors' Purchasing System Review. Paragraph (i) of FAR 
clause 52.244-2 specifies that the Government reserves the right to 
review the contractor's purchasing system as set forth in FAR subpart 
44.3. This clause is the mechanism through which the requirements of 
FAR subpart 44.3 are applied to contractors.
    FAR 44.302 requires the administrative contracting officer (ACO) to 
determine the need for a Contractors' Purchasing System Review (CPSR) 
based on, but not limited to, the past performance of the contractor, 
and the volume, complexity and dollar value of subcontracts. If a 
contractor's sales to the Government (excluding competitively awarded 
firm-fixed-price and competitively awarded fixed-price with economic 
price adjustment contracts and sales of commercial products and 
commercial services pursuant to part 12) are expected to exceed $25 
million during the next 12 months, the ACO will perform a review to 
determine if a CPSR is needed. Sales include those represented by prime 
contracts, subcontracts under Government prime contracts, and 
modifications. Generally, a CPSR is not performed for a specific 
contract. Rather, CPSRs are conducted on contractors based on the 
factors identified above. For example, the Defense Contract Management 
Agency Contractor Purchasing System Review Group is a group dedicated 
to conducting CPSRs for the Department of Defense. The head of the 
agency responsible for contract administration may raise or lower the 
$25 million review level if it is considered to be in the Government's 
best interest. Once an initial determination has been made to conduct a 
review, at least every three years the ACO shall determine whether a 
purchasing system review is necessary. If necessary, the cognizant 
contract administration office will conduct a purchasing system review.
    The cognizant ACO is responsible for granting, withholding, or 
withdrawing approval of a contractor's purchasing system and for 
promptly notifying the contractor of same (FAR 44.305-1). Related 
administrative requirements are as follows:
     FAR 44.305-2(c) requires that 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.
     FAR 44.305-3(b) requires 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.
    Contracting Officers use the information to evaluate the efficiency 
and effectiveness with which a contractor spends Government funds.

C. Annual Burden

    Respondents: 2,515.
    Total Annual Responses: 7,065.
    Total Burden Hours: 49,635.
    Obtaining Copies: Requesters may obtain a copy of the information 
collection documents from the GSA Regulatory Secretariat Division by 
calling 202-501-4755 or emailing [email protected]. Please cite OMB 
Control No. 9000-0149, Subcontract Consent and Contractors' Purchasing 
System Review.

Janet Fry,
Director, Federal Acquisition Policy Division, Office of Governmentwide 
Acquisition Policy, Office of Acquisition Policy, Office of 
Governmentwide Policy.
[FR Doc. 2024-27599 Filed 11-25-24; 8:45 am]
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