(a) The ACO shall ascertain the need for just a CPSR dependant on, but not restricted to, the earlier effectiveness with the contractor, and the amount, complexity and dollar worth of subcontracts. If a contractor’s income to The federal government (excluding competitively awarded company-set-cost and competitively awarded mounted-selling price with financial price adjustment contracts and income of economic materials and business products and services pursuant to aspect 12) are predicted to exceed $twenty five million during the subsequent twelve months, accomplish a review to ascertain if a CPSR is needed.
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(b) When an Preliminary dedication has become made under paragraph (a) of the part, at the least each and every three a long time the ACO shall establish no matter if a purchasing system review is important. If required, the cognizant contract administration Business will carry out a purchasing system review.
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Make sure purchase orders and subcontracts comprise all stream-down clauses, like terms and conditions, and some other clauses needed to execute the requirements of the key contract
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DOD’s Company Systems go right here Rule sets forth 24 system standards that should be existing in all contractor purchasing systems to get a purchasing system to generally be “satisfactory.”
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usually means a deficiency or mix of deficiencies in The inner control more than details in contractor organization systems, these that there's a acceptable probability that a fabric misstatement of these information won't be prevented, or detected and corrected, with a well timed basis. A reasonable possibility exists when the chance of the function happening is—
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“System” will not be interchangeable with “computer software” or “technologies”—it’s not a little something you purchase from the shelf and install.
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The clause may also provide that the key contractor and subcontractor shall be Similarly sure because of the contracting officer’s or board’s conclusion. The clause might not try to obligate the contracting officer or even the appeals board to choose concerns that do not crop up involving The federal government along with the prime contractor or that aren't cognizable beneath the clause at 52.233-one, Disputes.