44.305
Granting, withholding, or withdrawing approval
FAR 44.305 requires contracting officers to formally notify contractors of purchasing system approval status and mandates corrective action if deficiencies are found, impacting a contractor’s eligibility for future government work.
Overview
FAR 44.305 outlines the procedures and responsibilities for granting, withholding, or withdrawing approval of a contractor’s purchasing system following a Contractors’ Purchasing System Review (CPSR). This section details the steps contracting officers must take based on the results of the CPSR, including how to notify contractors of approval status, and the process for withholding or withdrawing approval if deficiencies are found. The regulation ensures that only contractors with adequate purchasing systems are approved, and provides a framework for corrective actions and communication between the government and contractors.
Key Rules
- Responsibilities (44.305-1)
- Contracting officers are responsible for determining whether to grant, withhold, or withdraw approval of a contractor’s purchasing system based on CPSR findings.
- Notification (44.305-2)
- Contractors must be formally notified in writing of the approval status of their purchasing system, including reasons for withholding or withdrawing approval and any required corrective actions.
- Withholding or Withdrawing Approval (44.305-3)
- If deficiencies are identified, approval may be withheld or withdrawn until the contractor implements satisfactory corrective actions.
Responsibilities
- Contracting Officers: Evaluate CPSR results, make approval decisions, and provide written notifications to contractors.
- Contractors: Address any identified deficiencies and implement corrective actions as required to maintain or regain system approval.
- Agencies: Oversee the CPSR process and ensure compliance with FAR requirements.
Practical Implications
- This section ensures that only contractors with compliant purchasing systems can receive or maintain approval, protecting government interests.
- Contractors must be proactive in addressing deficiencies to avoid disruptions in contract performance.
- Failure to comply can result in loss of approval, impacting eligibility for future contracts or subcontracts.