9354 Federal Register / Vol. 87, No. 34 / Friday, February 18, 2022 / Notices 

x. Date placed in service (if required 

in accordance with the terms and 

conditions of the contract). 

When approved by the Property 

Administrator, contractors may 

maintain, in lieu of formal property 

records, a file of appropriately crossreferenced documents evidencing 

receipt, issue, and use of material that 

is issued for immediate consumption. 

d. Paragraph (f)(1)(iv) requires 

contractors to periodically perform, 

record, and disclose physical inventory 

results during contract performance, 

including upon completion or 

termination of the contract. 

e. Paragraph (f)(1)(vii)(B) requires 

contractors, unless otherwise directed 

by the Property Administrator, to 

investigate and report all incidents of 

Government property loss as soon as the 

facts become known. Such reports shall, 

at a minimum, contain the following 

information: 

i. Date of incident (if known). 

ii. The data elements required under 

paragraph (f)(1)(iii)(A) of FAR 52.245–1. 

iii. Quantity. 

iv. Accountable contract number. 

v. A statement indicating current or 

future need. 

vi. Unit acquisition cost, or if 

applicable, estimated sales proceeds, 

estimated repair or replacement costs. 

vii. All known interests in 

commingled material of which includes 

Government material. 

viii. Cause and corrective action taken 

or to be taken to prevent recurrence. 

ix. A statement that the Government 

will receive compensation covering the 

loss of Government property, in the 

event the Contractor was or will be 

reimbursed or compensated. 

x. Copies of all supporting 

documentation. 

xi. Last known location. 

xii. A statement that the property did 

or did not contain sensitive, export 

controlled, hazardous, or toxic material, 

and that the appropriate agencies and 

authorities were notified. 

f. Paragraph (f)(1)(viii) requires 

contractors to promptly disclose and 

report Government property in its 

possession that is excess to contract 

performance. 

g. Paragraph (f)(1)(ix) requires 

contractors to disclose and report to the 

Property Administrator the need for 

replacement and/or capital 

rehabilitation. 

h. Paragraph (f)(1)(x) requires 

contractors to perform and report to the 

Property Administrator contract 

property closeout. 

i. Paragraph (f)(2) requires contractors 

to establish and maintain Government 

accounting source data, particularly in 

the areas of recognition of acquisitions, 

loss of Government property, and 

disposition of material and equipment. 

j. Paragraphs (j)(2) and (3) require 

contractors to submit inventory disposal 

schedules to the Plant Clearance Officer 

using the Standard Form (SF) 1428, 

Inventory Disposal Schedule and if 

needed the SF 1429, Inventory Disposal 

Schedule—Continuation Sheet. 

Paragraph (j)(2)(iv) requires contractors 

to provide the following information: 

i. Any additional information that 

may facilitate understanding of the 

property’s intended use. 

ii. For work-in-progress, the estimated 

percentage of completion. 

iii. For precious metals in raw or bulk 

form, the type of metal and estimated 

weight. 

iv. For hazardous material or property 

contaminated with hazardous material, 

the type of hazardous material. 

v. For metals in mill product form, the 

form, shape, treatment, hardness, 

temper, specification (commercial or 

Government) and dimensions 

(thickness, width, and length). 

2. FAR 52.245–9, Use and Charges. 

Paragraph (d)(1) of this clause requires 

contractors submitting a government 

property rental request to: (1) Identify 

the property for which rental is 

requested, (2) propose a rental period, 

and (3) compute an estimated rental 

charge by using the Contractor’s best 

estimate of rental time in the formulae 

described in paragraph (e) of the clause 

at FAR 52.245–9. 

This information is used to facilitate 

the management of Government 

property in the possession of the 

contractor. 

C. Annual Burden 

Respondents and Recordkeepers: 

13,607. 

Total Annual Responses and Records: 

8,990,168. 

Total Burden Hours: 4,442,877. 

(2,291,997 reporting hours + 2,150,880 

recordkeeping hours) 

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 

GSARegSec@gsa.gov. Please cite OMB 

Control No. 9000–0075, Government 

Property. 

Janet Fry, 

Director, Federal Acquisition Policy Division, 

Office of Governmentwide Acquisition Policy, 

Office of Acquisition Policy, Office of 

Governmentwide Policy. 

[FR Doc. 2022–03562 Filed 2–17–22; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

[OMB Control No. 9000–0149; Docket No. 

2021–0053; Sequence No. 15] 

Submission for OMB Review; 

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. 

SUMMARY: Under the provisions of the 

Paperwork Reduction Act, the 

Regulatory Secretariat Division has 

submitted to the Office of Management 

and Budget (OMB) a request to review 

and approve an extension of a 

previously approved information 

collection requirement regarding 

subcontract consent and Contractors’ 

Purchasing System Review. 

DATES: Submit comments on or before 

March 21, 2022 

ADDRESSES: Written comments and 

recommendations for this information 

collection should be sent within 30 days 

of publication of this notice to 

www.reginfo.gov/public/do/PRAMain. 

Find this particular information 

collection by selecting ‘‘Currently under 

Review—Open for Public Comments’’ or 

by using the search function. 

Additionally, submit a copy to GSA 

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. 

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. If there are 

difficulties submitting comments, 

contact the GSA Regulatory Secretariat 

Division at 202–501–4755 or 

GSARegSec@gsa.gov. 

FOR FURTHER INFORMATION CONTACT: 

Zenaida Delgado, Procurement Analyst, 

at telephone 202–969–7207, or 

zenaida.delgado@gsa.gov. 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 34 / Friday, February 18, 2022 / Notices 9355 

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 a contractor must submit to comply 

with the requirements in Federal 

Acquisition Regulation (FAR) 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. The review allows the 

Government to determine whether the 

contractor’s purchasing policies and 

practices are efficient and adequately 

protect the Government’s interests. 

If the contractor has an approved 

purchasing system, consent is required 

for subcontracts specifically identified 

by the contracting officer in the 

subcontracts clause of the contract. 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 costreimbursement, time-and-materials, 

labor-hour, or letter contracts, and also 

for unpriced actions under fixed-price 

contracts that exceed the simplified 

acquisition threshold. 

2. Advance notification. Prime 

contractors must provide contracting 

officers notification before the award of 

any cost-plus-fixed-fee subcontract, or 

certain fixed-price subcontracts that are 

identified in paragraph (b), (c) and (d) 

of FAR clause 52.244–2. This 

requirement for advance notification is 

driven by statutory requirements in 10 

U.S.C. 2306 and 41 U.S.C. 3905. 

3. Contractors’ Purchasing System 

Review. The objective of a contractor 

purchasing system review (CPSR), is to 

evaluate the efficiency and effectiveness 

with which a contractor spends 

Government funds and complies with 

Government policy when 

subcontracting. 

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 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 items 

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. 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. 

A CPSR is a thorough review of a 

contractor’s existing procurement 

policies, procedures, management 

control systems (including internal 

audit procedures), and documentation. 

The review provides the ACO a basis for 

granting, withholding, or withdrawing 

approval of a contractor’s purchasing 

system. An approved purchasing system 

allows the contractor more autonomy in 

subcontracting actions. Without an 

approved purchasing system more 

Government oversight is necessary, and 

Government consent to subcontract is 

required. 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 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 inplant 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. 

C. Annual Burden 

Respondents: 3,270. 

Total Annual Responses: 9,330. 

Total Burden Hours: 53,394. 

D. Public Comment 

A 60-day notice was published in the 

Federal Register at 86 FR 71499, on 

December 16, 2021. No comments were 

received. 

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 

GSARegSec@gsa.gov. 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. 2022–03566 Filed 2–17–22; 8:45 am] 

BILLING CODE 6820–EP–P 


jspears on DSK121TN23PROD with NOTICES1