Source: http://www.marcorsyscom.usmc.mil/sites/pa/REFLIB/FAR%20WebHelp/(Part_44_Whole)_.htm
Timestamp: 2014-09-21 14:07:42
Document Index: 265897853

Matched Legal Cases: ['art 44', 'art 2', 'art 44', 'art 51', 'art 8', 'art 44', 'art 12', 'art 12', 'art 12']

Part 44 Subcontracting Policies and Procedures 44.000 -- Scope of Part.
(a) This part prescribes policies and procedures for consent to subcontracts or advance notification of subcontracts, and for review, evaluation, and approval of contractors' purchasing systems.
'"Approved purchasing system" means a contractor's purchasing system that has been reviewed and approved in accordance with this part.
"Contractor," means the total contractor organization or a separate entity of it, such as an affiliate, division, or plant, that performs its own purchasing.
"Contractor purchasing system review (CPSR)" means the complete evaluation of a contractor's purchasing of material and services, subcontracting, and subcontract management from development of the requirement through completion of subcontract performance.
"Subcontract," means any contract as defined in Subpart 2.1 entered into by a subcontractor to furnish supplies or services for performance of a prime contract or a subcontract. It includes but is not limited to purchase orders, and changes and modifications to purchase orders.
"Subcontractor," means any supplier, distributor, vendor, or firm that furnishes supplies or services to or for a prime contractor or another subcontractor. Subpart 44.2 -- Consent to Subcontracts
44.201-1 -Consent requirements.
[*see DoD deviation below]
(b) If the contractor does not have an approved purchasing system, consent to the subcontract is required for cost-reimbursement, time-and-materials, labor-hour, or letter contracts, and also for unpriced actions (including unpriced modifications and unprice delivery orders) under fixed-price contracts that exceed the simplified acquisition threshold, for--
(1)* Cost-reimbursement, time-and-materials, or labor-hour subcontracts; and
(d)* The contracting officer's written authorization for the contractor to purchase from Government sources (see Part 51) constitutes consent.
44.201-2 - Advance notification requirements.
44.202 -- Contracting Officers Evaluation.
(b) The contracting officer responsible for consent shall review the contractor's notification and supporting data to ensure that the proposed subcontract is appropriate for the risks involved and consistent with current policy and sound business judgement.
(1) Is the decision to subcontract consistent with the contractor's approved make-or-buy program, if any (see 15.407-2)?
(4) Has the contractor complied with the prime contract requirements regarding--
(ii) Purchase from nonprofit agencies designated by the Committee for Purchase From People Who Are Blind or Severely Disabled (Javits-Wagner-O'Day Act) (41 U.S.C. 48))(see Part 8)?
(6) Did the contractor adequately assess and dispose of subcontractors' alternate proposals, if offered?
(1) The prime contractor's purchasing system or performance is inadequate;
(a) The contracting officer's consent to a subcontract or approval of the contractor's purchasing system does not constitute a determination of the acceptability of the subcontract terms or price, or of the allowability of costs, unless the consent or approval specifies otherwise.
(c) Contracting officers should not refuse consent to a subcontract merely because it contains a clause giving the subcontractor the right of indirect appeal to an agency board of contract appeals if the subcontractor is affected by a dispute between the Government and the prime contractor. Indirect appeal means assertion by the subcontractor of the prime contractor's right to appeal or the prosecution of an appeal by the prime contractor on the subcontractor's behalf. The clause may also provide that the prime contractor and subcontractor shall be equally bound by the contracting officer's or board's decision. The clause may not attempt to obligate the contracting officer or the appeals board to decide questions that do not arise between the Government and the prime contractor or that are not cognizable under the clause at 52.233-1, Disputes.
(a)(1) The contracting officer shall insert the clause at 52.244-2, Subcontracts in solicitations and contracts when comtemplating--
(ii) Contracts for mortuary services, refuse services, or shipment and storage or personal property, when an agency -prescribed clause on approval of subcontractors' facilities is required.
(b) * The contracting officer may insert the clause at 52.244-4, Subcontracts and Outside Associates and Consultants (Architect-Engineer Services), in architect-engineer contracts.
(c) * The contracting officer shall, when contracting by negotiation, insert the clause at 52.244-5, Competition in Subcontracting, in solicitations and contracts when the contract amount is expected to exceed the simplified acquisition threshold, unless--
* DAR Tracking Number: 97-00012
SUBJECT: Extension of Class Deviation for Reinvention Laboratory--Reducing Oversight Costs
By memorandum dated November 19, 1996, I authorized all military departments and defense agencies to deviate from the requirements in Federal Acquisition Regulations (FAR) 44.201-1(c) (1) and (d); 44.201-2(a); 44.201-3; 44.204(a), (b), and (c); and the clauses at FAR 52.244-1, -2, and -3 when contracting with Texas Instruments Defense Systems and Electronics Group, Dallas, Texas. I am extending the class deviation for an additional year.
This class deviation authorizes you to eliminate the subcontract consent requirements, except for those subcontracts specifically identified by the contracting officer in the Subcontracts (Deviation) clause, provided that Texas Instruments Defense Systems and Electronic Groups, Dallas, maintains an approved purchasing system in accordance with FAR Part 44. Contracting officers shall use the attached clause, with its Alternates, in lieu of the clauses at FAR 52.244-1, -2, and -3. Contracting officers may modify existing contracts with Texas Instruments Defense Systems and Electronics Group, Dallas, Texas, to include these subcontract notification and consent provisions only if adequate consideration is obtained.
The class deviation is extended for a one-year period ending November 30, 1998, or until the FAR is revised, whichever event occurs first.
The objective of a contractor purchasing system review (CPSR) is to evaluate the efficiency and effectiveness with which the contractor spends Government funds and complies with Government policy when subcontracting. The review provides the administrative contracting officer (ACO) a basis for granting, withholding, or withdrawing approval of the contractor's purchasing system.
(a) The ACO shall 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 the 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, 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.
A CPSR requires an evaluation of the contractor's purchasing system. Unless segregation of subcontracts is impracticable, this evaluation shall not include subcontracts awarded by the contractor exclusively in support of Government contracts that are competitively awarded firm-fixed-price, competitively awarded fixed-price with economic price adjustment, or awarded for commercial items pursuant to Part 12. The considerations listed in 44.202-2 for consent evaluation of particular subcontracts also shall be used to evaluate the contractor's purchasing system, including the contractor's policies, procedures, and performance under that system. Special attention shall be given to --
(c) Methods of evaluating subcontractor responsibility, including the contractor's use of the Excluded Parties List System (see 9.404) and, if the contractor has subcontracts with parties on the list, the documentation, systems, and procedures the contractor has established to protect the Government's interests (see 9.405-2);
(b) Surveillance shall be accomplished in accordance with a plan developed by the ACO with the assistance of subcontracting, audit, pricing, technical, or other specialists as necessary. The plan should cover pertinent phases of a contractor's purchasing system (preaward, postaward, performance, and contract completion) and pertinent operations that affect the contractor's purchasing and subcontracting. The plan should also provide for reviewing the effectiveness of the contractor's corrective actions taken as a result of previous Government recommendations. Duplicative reviews of the same areas by CPSR and other surveillance monitors should be avoided.
The cognizant ACO is responsible for granting, withholding, or withdrawing approval of a contractor's purchasing system. The ACO shall --
(a) Approve a purchasing system only after determining that the contractor's purchasing policies and practices are efficient and provide adequate protection of the Government's interests; and
(iv) May be withdrawn at any time at the ACO's discretion.
(b) In exceptional circumstances, consent to certain subcontracts or classes of subcontracts may be required even though the contractor's purchasing system has been approved. The system approval notification shall identify the class or classes of subcontracts requiring consent. Reasons for selecting the subcontracts include the fact that a CPSR or continuing surveillance has revealed sufficient weaknesses in a particular area of subcontracting to warrant special attention by the ACO.
(a) The ACO shall withhold or withdraw approval of a contractor's purchasing system when there are major weaknesses or when the contractor is unable to provide sufficient information upon which to make an affirmative determination. The ACO may withdraw approval at any time on the basis of a determination that there has been a deterioration of the contractor's purchasing system or to protect the Government's interest. Approval shall be withheld or withdrawn when there is a recurring noncompliance with requirements, including but not limited to --
(b) When approval of the contractor's purchasing system is withheld or withdrawn, the ACO shall within 10 days after completing the in-plant review
Upon request, the ACO may inform a contractor that the purchasing system of a proposed subcontractor has been approved or disapproved, but shall caution that the Government will not keep the contractor advised of any changes in the approval status. If the proposed subcontractor's purchasing system has not been reviewed, the contractor shall be so advised.
The ACO shall distribute copies of CPSR reports; notifications granting, withholding, orwithdrawing system approval; and Government recommendations for improvement of an approved system, including the contractor's response, to at least --
(c) The contractor (except that furnishing copies of the contractor's response is optional).
This subpart prescribes the policies limiting the contract clauses a prime contractor may be required to apply to any subcontractors that are furnishing commercial items or commercial components in accordance with Section 8002(b)(2) (Public Law 103-355).
This subpart applies to all contracts and subcontracts. For the purpose of this subpart, the term "subcontract" has the same meaning as defined in Part 12.
(b) The clause at 52.244-6, Subcontracts for Commercial Items and Commercial Components, 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.
The contracting officer shall insert the clause at 52.244-6, Subcontracts for Commercial Items and Commercial Items, in solicitations and contracts other than those for commercial items.