Part 1 of a 2 part series on CPSR from Capital Edge Consulting
The Defense Contract Management Agency’s (DCMA) Contractor Purchasing System Review (CPSR) Group continues to remain highly active in their ongoing pursuit of evaluating the efficiency and effectiveness of contractors’ purchasing practices, and compliance with applicable laws, regulations and contract requirements. According to DCMA, the CPSR Group scheduled 134 CPSRs in the government fiscal year 2015 (ending September 30) and completed 121.
In October 2016, DCMA released the following list of the most common areas of purchasing system deficiencies (based on DCMA-issued CPSR Reports) from fiscal year 2015:
• Debarment Policy and Procedure Manual
• Payments to Influence Documentation
• Price Analysis Truthful cost or Pricing Data (Formerly TINA)
• Defense Priority and Allocation System (DPAS) Negotiations
• Flow Downs Cost Accounting Standards
• Sole Source Selection Justification Internal Reviews
In government fiscal year 2016 (just ended on September 30), DCMA scheduled 133 CPSRs and completed 126. Although DCMA has not published the most common purchasing system areas of deficiencies from fiscal year 2016, this article summarizes many of our experiences in working with our clients over the past year. In Part Two of this series, we will explore some recent noteworthy changes concerning the CPSR Group and our observations about the current CPSR environment.