48 C.F.R. PART 244—SUBCONTRACTING POLICIES AND PROCEDURES
Title 48 - Federal Acquisition Regulations System
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
Source: 56 FR 36447, July 31, 1991, unless otherwise noted.
(a) Where other than lowest price is the basis for subcontractor selection, has the contractor adequately substantiated the selection as offering the greatest value to the Government? [60 FR 29501, June 5, 1995] The administrative contracting officer (ACO) is solely responsible for initiating reviews of the contractor's purchasing systems, but other organizations may request that the ACO initiate such reviews. [70 FR 67922, Nov. 9, 2005] Also review the adequacy of rationale documenting commercial item determinations to ensure compliance with the definition of “commercial item” in FAR 2.101. [67 FR 38023, May 31, 2002] (b) The ACO, or the purchasing system analyst (PSA) with the concurrence of the ACO, may initiate a special review of specific weaknesses in the contractor's purchasing system. See PGI 244.304(b) for examples of weaknesses. [70 FR 67922, Nov. 9, 2005] Use this subsection instead of FAR 44.305–2(c) and 44.305–3(b). (a) At the completion of the in-plant portion of the review, the ACO shall hold an exit conference with the contractor. At the conference, the ACO should— (1) Present the review team's recommendations, signed by the ACO; (2) Request the contractor submit its plan for correcting deficiencies or making improvements within 15 days; and (3) Not comment on the pending or planned decision to grant or withhold approval of the contractor's purchasing system. (b) The PSA should submit the complete report to the ACO, or any department or agency established review board, within ten days after receipt of the contractor's response under paragraph (a)(2) of this subsection. (c) The ACO should completely review the report and consider the contractor's response before making a decision on granting, withholding, or withdrawing purchasing system approval. The ACO shall notify the contractor of the decision within ten days after receipt of the report with a copy of the decision to the PSA and the contracting office, when requested. (d) When a contractor advises that it has corrected deficiencies that led the ACO to withhold or withdraw the purchasing system approval, the ACO— (1) Shall request the PSA to verify that the contractor has— (i) Corrected the deficiencies; and (ii) Implemented any other ACO recommendations. (2) Should ask for a review of purchasing policies and procedures issued since the last review. (a) Contractors shall determine whether a particular subcontract item meets the definition of a commercial item. This requirement does not affect the contracting officer's responsibilities or determinations made under FAR 15.403–1(c)(3). Contractors are expected to exercise reasonable business judgment in making such determinations, consistent with the guidelines for conducting market research in FAR part 10. [67 FR 38023, May 31, 2002] Use the clause at 252.244–7000, Subcontracts for Commercial Items and Commercial Components (DoD contracts), in solicitations and contracts for supplies or services other than commercial items, that contain any of the following clauses: 252.225–7014 Preference for Domestic Specialty Metals, Alternate I, 252.247–7023 Transportation of Supplies by Sea, and 252.247–7024 Notification of Transportation of Supplies by Sea. [65 FR 14401, Mar. 16, 2000]
Title 48: Federal Acquisition Regulations System
PART 244—SUBCONTRACTING POLICIES AND PROCEDURES
Section Contents
244.202 Contracting officer's evaluation.
244.202-2 Considerations.
244.301 Objective.
244.303 Extent of review.
244.304 Surveillance.
244.305 Granting, withholding, or withdrawing approval.
244.305-70 Granting, withholding, or withdrawing approval.
244.402 Policy requirements.
244.403 Contract clause.
Subpart 244.2—Consent to Subcontracts
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244.202 Contracting officer's evaluation.
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244.202-2 Considerations.
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Subpart 244.3—Contractors' Purchasing Systems Reviews
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244.301 Objective.
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244.303 Extent of review.
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244.304 Surveillance.
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244.305 Granting, withholding, or withdrawing approval.
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244.305-70 Granting, withholding, or withdrawing approval.
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Subpart 244.4—Subcontracts for Commercial Items and Commercial Components
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244.402 Policy requirements.
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244.403 Contract clause.
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