PART 1844

SUBCONTRACTING POLICIES AND PROCEDURES

**TABLE OF CONTENTS**

**SUBPART [1844.2](#OLE_LINK2) CONSENT TO SUBCONTRACTS**

1844.201 Consent and advance notification requirements.

1844.201-1 Consent requirements.

1844.202 Contracting officer's evaluation.

1844.202-1 Responsibilities.

1844.204 Contract clauses.

1844.204-70 NASA contract clause.

**SUBPART [1844.3](#OLE_LINK3)** **CONTRACTORS\' PURCHASING SYSTEMS
REVIEWS**

1844.302 Requirements.

1844.302-70 DCMA-conducted contractor purchasing system reviews

1844.302-71 NASA-conducted contractor purchasing systems reviews.

1844.304 Surveillance.

1844.304-70 Contracting officer surveillance.

1844.305 Granting, withholding, or withdrawing approval.

1844.305-70 Review of CPSR reports.

PART 1844

SUBCONTRACTING POLICIES AND PROCEDURES

**Subpart** []{#OLE_LINK2 .anchor}**1844.2\--Consent to Subcontracts**

**1844.201 Consent and advance notification requirements.**

**1844.201-1 Consent requirements.**

(a)**(i)** In determining special surveillance consent requirements, the
contracting officer should consider specific subcontract awards, as well
as any individual systems, subsystems, components, technologies, and
services that should have contracting officer consent prior to being
subcontracted.

**(ii)** For each planned contract award expected to exceed \$1 million
in total estimated value (inclusive of options), the contracting officer
should consider such factors as the following to determine whether
certain subcontracts require special surveillance:

**(A)** The degree of subcontract pricing uncertainties at the time of
contract award;

**(B)** The overall quality of the contractor\'s approach to pricing
subcontracts;

**(C)** The extent of competition achieved, or to be achieved, by the
contractor in the award of subcontracts;

**(D)** Technical complexity and the criticality of specific supplies,
services, and technologies on the successful performance of the
contract; and

**(E)** The potential impact of planned subcontracts on source selection
or incentive arrangements.

**(iii)** The contracting officer shall document results of the review
in the contract file. For contract modifications and change orders, the
contracting officer shall make the determination required by paragraph
(a)**(ii)** of this section whenever the value of any subcontract
resulting from the change order or modification is proposed to exceed
the dollar threshold for obtaining cost or pricing data (see [**FAR
15.403-4(a)(1)**](http://www.arnet.gov/far/current/html/Subpart_15_4.html#1087860))
or is one of a number of subcontracts with a single subcon­tractor for
the same or related supplies or services that are expected cumulatively
to exceed the dollar threshold for obtaining cost or pricing data.

**(iv)** In addition, any subcontract under a cost type prime contract
shall be identified for special surveillance if consent was not provided
at the time of contract award and cost or pricing data would be required
in accordance with [**FAR
15.404-3(c)**](http://www.arnet.gov/far/current/html/Subpart_15_4.html#1087973).

**1844.202 Contracting officer's evaluation.**

**1844.202-1 Responsibilities.**

\(a\) NASA contracting officers shall retain consent to subcontract
authority unless delegation is approved in writing by the procurement
officer.

**1844.204 Contract clauses.**

**1844.204-70 NASA contract clause.**

The contracting officer shall insert the clause at
[**1852.244-70**](http://www.hq.nasa.gov/office/procurement/regs/5242-44.htm#1852.244-70),
Geographic Participation in the Aerospace Program, in all research and
development solicitations and contracts of \$500,000 or over that will
be performed within the United States.

**Subpart**[]{#OLE_LINK3 .anchor} **1844.3\--Contractors\' Purchasing
Systems Reviews**

**1844.302**  **Requirements.**

**1844.302-70 DCMA-conducted contractor** **purchasing system reviews.**

For contracts within their cognizance, NASA contracting officers shall
be aware of purchasing system approval status and should become actively
involved with the [**Defense Contract Management
Agency**](http://www.dcmc.hq.dla.mil/) (DCMA) in the Contractor
Purchasing System Review (CPSR) process. Involvement should include the
following:

\(a\) Verifying that CPSRs are being conducted in accordance with [**FAR
44.302**](http://www.arnet.gov/far/current/html/Subpart_44_3.html#1046582).

\(b\) Ensuring that purchasing system review specifically includes the
business unit performing the NASA contract.

\(c\) Actively participating as a team member, or arranging NASA
representation, on DCMA CPSRs to review areas of NASA-specific interest.
At a minimum, such participation or representation shall be arranged
when the DCMA CPSR review involves \--

\(1\) Contractors with major NASA programs;

\(2\) Contractors\' business units where the total dollar value of NASA
contracts is substantial; or

\(3\) Any contractor system where the contracting officer has special
concerns.

\(d\) Ensuring that the selected CPSR sample to be reviewed reflects the
level of NASA business in the contractor\'s purchasing organization.

\(e\) Providing to the cognizant DCMA CPSR team leader any areas of
special emphasis regarding the contractor\'s purchasing system to ensure
that the review is tailored to address any NASA concerns.

**1844.302-71** **NASA-conducted contractor** **purchasing system
reviews.**

If a NASA activity is the cognizant contract administration office, or
after coordination with the cognizant DCMA CPSR office it is determined
that a CPSR is required but cannot be accomplished by DCMA, then a CPSR
should be conducted by NASA personnel. The NASA CPSR team leader:

\(a\) May vary the scope of review depending on the contractor and
contracts involved.

\(b\) Shall maintain close coordination with the cognizant ACO during
CPSRs at contractors under DOD cognizance.

**1844.304 Surveillance.**

**1844.304-70 Contracting officer surveillance.**

\(a\) In the period between complete CPSRs, NASA contracting officers
shall maintain a sufficient level of surveillance to ensure contractor
purchasing efforts in support of NASA contracts are accomplished in an
appropriate manner and protect the interests of the Agency.

\(b\) Surveillance shall be accomplished primarily through performance
of subcontract consent reviews. Other methods of surveillance, including
periodic reviews of contractor purchasing records, may also be
conducted. Contracting officers shall document the results of
subcontract consent reviews and periodic reviews, maintaining a record
of contractor subcontract or purchase order award performance on NASA
contracts. Contractor performance shall be summarized on an annual basis
and provided to the ACO cognizant of the contractor\'s purchasing
system. Annual reports should summarize the number of consent reviews
and other reviews conducted during the year by NASA representatives, and
summarize the types and quantity of deficiencies identified during
reviews, the need for special reviews, and recommended areas of emphasis
during future CPSRs.

**1844.305 Granting, withholding, or** **withdrawing approval.**

**1844.305-70 Review of CPSR reports.**

ACO actions related to purchasing system approval have a potential
impact on NASA contracting officer consent requirements. Accordingly,
NASA contracting officers shall review system deficiencies documented in
CPSR reports and when results of consent reviews and other sources
conflict with CPSR or DOD surveillance conclusions, formally communicate
such concerns to the ACO having cognizance of purchasing system
approval. Significant issues or significant conflicts with DOD CPSR
results should be formally referred to the Office of Procurement (Code
HS).