(i) Adequate descriptions of any factors to be evaluated; and

(ii) Evaluation of all offers on a common basis.

(c)Decisions as to whether commercial items conform to the purpose and intent of the exemption from the requirement for submitting and certifying current cost or pricing data shall be analyzed.

§9-23.107 Review of CPSR Reports.

(a) The findings and recommendations of the review team (the CPSR Report) should be reviewed by the Head of the Procuring Activity having cognizance over the contractor and shall be approved by the Director, Office of Procurement Management (attn. PR-32) before the Contracting Officer determines to grant, continue, withhold, or withdraw approval.

(b) Two copies of the CPSR report shall be furnished to the Director, Office of Procurement Management (attn. PR-32), who will consult with appropriate organizations in perfor mance of his review. The submittal shall include:

(i) An outline of the actions planned as a result of the review;

(ii) A draft of whatever correspondence will be issued to the contractor as a result of review;

(iii) A description of the present and any proposed revisions to subcontract notice/ consent/approval dollar thresholds or other limitations;

If revisions are to be made to subcontract dollar thresholds or other limitations; (A) A stratification of the present subcontract review workload, including average workhours expended and lead times experienced in processing requests for subcontract consent and;

(B) An evaluation of the anticipated benefits including average workhours and lead times saved in processing requests for subcontract consent.

§9-23.108 Granting, continuing, withholding, and withdrawing approval.

(a) The Contracting Officer is responsible for granting, continuing, withholding, or withdrawing approval of a contractor's procurement system subject to the requirements of §923.107(a). The Contracting Officer shall approve a procurement system only after a CPSR discloses that the contractor's procurement policies and practices are effective and provide adequate protection of the Government's interests. Approval of a system shall be withheld if there are major weaknesses or if the contractor is unable to provide sufficient information upon which to base an affirmative determination. An approval may be withdrawn at any time on the basis of a determination that there has been a deterioration of the contractor's procurement system, or otherwise to protect the interest of the Government.

(b) The Contracting Officer shall give the contractor written notice granting, continuing, withholding, or withdrawing approval of the procurement system. If the contractor's system is approved, the notification of approval shall include:

(1) The effective date of the approval;

(2) The plant, plants, divisions, or facility of the company that are approved;

(3) The period that the approval covers (usually one year, maximum two years); (4) The extent of applicability (usually all DOE contracts with the approved facility administered by the involved procurement office, all such DOE contracts administered by other DOE procurement offices when the cognizant Contracting Officer concurs);

(5) Any special conditions or requirements for notification to or consent or approval by the Contracting Officer (such as intracompany transfers, critical or programmatically important subcontracts);

(6) Other conditions such as:

(i) Contract terms that need to be changed; and

(ii) Advice that termination of approval will occur upon a change in the procurement system unless approved by the Contracting Officer; and

tion.

(7) A statement that approval may be withdrawn at any time at the Government's discre

(c) The effect of the approval; (any increase in dollar or any other limitations) will be based upon the degree of confidence in the contractor's procurement system as determined through the review and the need to maintain a review of the most significant subcontracts, subject to the limitations in §9-50.302-5(b).

(d) Approval of a contractor's procurement system does not offset the requirement for advance notification except as set forth in §9-3.901.

(1) Advance notification for information purposes is required in the following instances: (i) Noncompetitive procurements over $25,000

(ii) Intracompany transfers or payments over $10,000; and

(iii) Direct reimbursement of costs over $500.

(2) The advance notice shall contain, as a minimum, a description of work, estimated cost, type of contract or reimbursement provisions, and extent of anticipated competition. Such notification shall be forwarded to the Contracting Officer as soon as the information is known, which normally will be before solicitation. The Contracting Officer may at any time request additional information that must be furnished promptly and prior to award of the subcontract. (e) When approval of the contractor's procurement system is withheld or withdrawn, the recommendations for correction of those deficiencies which will permit (after correction and assuming that other areas previously found to be satisfactory are not deficient) the granting or reinstatement of approval should be furnished to the contractor in writing. The contractor shall be requested to furnish as soon as possible (normally within two weeks) a time-phased plan for correction of deficiencies. Periodic status reports shall be required to be submitted to the Contracting Officer. The contents of reports of contractor procurement systems reviews, and other information disclosed by the contractor during the review shall be divulged only to those Government personnel having a need to know. (However, the Contracting Officer will furnish three copies of the approved review report (less the recommendations to the Government) to the contractor for information purposes.)

(f) When recommendations are made for improvement of an approved system, the contractor shall be requested to reply as soon as possible (normally within two weeks) as to concurrence or position with respect to the recommendations.

(g) Copies of notifications granting, continuing, withholding, or withdrawing approval of a contractor's procurement system, copies of recommendations for improvement of an approved system, and information received from the contractor pursuant to (d) and (e) above, shall be transmitted to the Director, Office of Procurement Management (attn. PR-32).

$9-23.109 Disclosure of approval status of a contractor's procurement system.

Upon request, a prime contractor may be informed that the procurement system of a proposed subcontractor has been approved under Government prime contracts, if such is the case. The prime contractor shall be cautioned that approval status is furnished only as of the date of notification and that the Government does not assume the responsibility to keep the prime

contractor advised of any change in the approval status of the proposed subcontractor's procurement system.

§9-23.110 Surveillance of the contractor's approved procurement system.

(a) The Contracting Officer must maintain a sufficient level of surveillance to assure that the contractor continues to effectively manage the procurement program. The Contracting Officer shall develop a surveillance plan and submit it to the Director, Office of Procurement Management (attn. PR-32) for approval. The surveillance plan shall encompass all phases of the system (pre-award and post-award performance, contract completion and close out) and all operations which impact procurement and subcontracting. Surveillance shall consider all of the elements of the contractor's procurement system including, but not limited to, those items evaluated in the initial review.

(b) Certain subcontractors may require additional surveillance because of the flowdown of policies on cost, schedule, and technical performance.