PART 1844
SUBCONTRACTING POLICIES AND PROCEDURES
TABLE OF CONTENTS
SUBPART 1844.2 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 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 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))
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).
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.
1844.204-70 NASA contract clause.
The contracting officer shall insert the
clause at 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
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
(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.
(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.
1844.304-70
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.
CO 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).