44.305-1
Responsibilities
The ACO must only approve a contractor’s purchasing system if it is efficient and protects the Government’s interests, and must promptly notify the contractor in writing of any approval decision.
Overview
FAR 44.305-1 outlines the responsibilities of the Administrative Contracting Officer (ACO) regarding the approval of a contractor’s purchasing system. The ACO must ensure that the contractor’s purchasing policies and practices are efficient and adequately protect the Government’s interests before granting approval. The ACO is also required to promptly notify the contractor in writing of any decision to grant, withhold, or withdraw approval of the purchasing system. This process ensures that only compliant and reliable purchasing systems are used in government contracts, safeguarding federal interests and promoting accountability.
Key Rules
- Approval Based on Efficiency and Protection
- The ACO can only approve a contractor’s purchasing system if it is efficient and provides adequate protection for the Government.
- Written Notification Requirement
- The ACO must promptly notify the contractor in writing of any decision to grant, withhold, or withdraw approval of the purchasing system.
Responsibilities
- Contracting Officers: Must evaluate and document the contractor’s purchasing system, and provide timely written notifications regarding approval status.
- Contractors: Must maintain efficient purchasing policies and practices that protect the Government’s interests.
- Agencies: Ensure oversight through the ACO and maintain records of purchasing system approvals and notifications.
Practical Implications
- This section exists to ensure that contractors’ purchasing systems meet federal standards before being used on government contracts.
- It impacts daily contracting by requiring both contractors and ACOs to maintain clear documentation and communication regarding purchasing system status.
- Common pitfalls include delays in notification, inadequate documentation, or failure to meet efficiency and protection standards, which can result in withheld or withdrawn approval.