44.101
Definitions
Clear understanding of these definitions is essential for compliance with contractor purchasing system requirements and successful government contract management.
Overview
FAR 44.101 provides essential definitions for terms used throughout Part 44, which governs the review and approval of contractor purchasing systems. Understanding these definitions is critical for both contractors and contracting officers, as they clarify the scope of what constitutes a purchasing system, who is considered a contractor or subcontractor, and what activities are covered under a Contractor Purchasing System Review (CPSR). These definitions set the foundation for compliance and oversight requirements related to subcontracting and purchasing within government contracts.
Key Rules
- Approved Purchasing System
- Defined as a contractor’s purchasing system that has been reviewed and approved according to Part 44 procedures.
- Contractor and Subcontractor
- Clarifies that a contractor can be the entire organization or a specific entity, and a subcontractor includes any supplier or vendor providing goods or services for a contract.
- Contractor Purchasing System Review (CPSR)
- Specifies that CPSR is a comprehensive evaluation of a contractor’s purchasing and subcontract management processes.
- Subcontract
- Broadly defines subcontracts to include purchase orders and modifications, not just formal contracts.
Responsibilities
- Contracting Officers: Must use these definitions to determine when CPSR and related oversight are required.
- Contractors: Should ensure their purchasing systems and subcontracting practices align with these definitions for compliance.
- Agencies: Rely on these definitions to enforce consistent application of Part 44 requirements.
Practical Implications
- These definitions are foundational for understanding and applying the rules in Part 44.
- Misunderstanding these terms can lead to compliance failures, especially regarding CPSR scope and subcontracting obligations.
- Contractors should review these definitions to ensure their internal policies and documentation are consistent with FAR requirements.