DCMA Aims to Simplify CPSRs for Small Businesses

“Simple” and “CPSR” are typically not used in the same sentence by those of us in industry who have been through, are going through, or will undergo, a DCMA CPSR (contractor purchasing system review). However, the DCMA recently published an article in Insight Magazine titled “CPSR Team Simplifies Subcontract Support, ” by John Foley, DCMA’s CPSR Group Director.  He explains that he is hoping to “…create[ing] an environment where small contractors are eased into obtaining an approved purchasing system.”  Mr. Foley goes on to say that the CPSR group “strive[s] to lay out the process in a way that is relatable and achievable for those working toward their CPSR.”

SpendLogic shares that same commitment and goal of assisting contractors who are new to the CPSR process and DCMA requirements in general. We help companies ensure their purchasing system complies with all applicable government regulations and public laws, the DCMA CPSR policies and procedures, as well as their own internal policies and procedures.

Are You Eligible for a CPSR?

As a small business, you may not have $50 million in qualifying sales to the U.S. Government, but perhaps you aim to someday reach and exceed that threshold.  Truth be told, you could be just one prime contract win away from being eligible for a CPSR.  It is better for you to have your purchasing system in order before you receive DCMA’s first request, which arrives 90 days prior to your review.  At this point, the DCMA will request a copy of your policies & procedures as well as the “universe” of files for possible review.  The list of files in the “universe” covers procurements from the prior 12 months.

The Wrong Way to Prepare for a DCMA CPSR

If you do not have a procurement policy & procedure manual and you have not been complying with procurement regulations, the arrival of this DCMA notice often sets off organizational panic.  This places an excessive amount of stress onto procurement staff and exposes the company to unnecessary risk of not passing a major business system review – the CPSR. Unprepared teams typically spend the next three months feverishly reviewing a year’s worth of files – all while taking care of ongoing procurement responsibilities.

At this point, some companies go out and purchase a procurement manual template and some forms.  But buyer beware: You will then be audited to that procurement manual.  Unless it’s been customized to how work is actually performed, it’s a recipe for disaster. Acquiring a purchasing manual and a few forms does not guarantee compliance.  Procurement staff must comprehend and be trained on what is necessary and then actually do it!

    Ensure Success During a DCMA Purchasing System Review

    SpendLogic has developed a suite of tools that will ensure your success during a DCMA purchasing system review.  These tools include SpendFile, a TurboTax-like approach to manual paper checklists and documentation folders.  SpendFile automates the process of determining what documentation is required.  It connects your policies and procedures (as well as FAR requirements) to everyday work efforts.  It also routes file review through Management and Compliance.  When it’s time for a CPSR, it provides the DCMA read-only views to the orders and folders that you specify.

    Within SpendFile, SpendLogic’s report generation modules automate price analysis, travel analysis, single/sole source justification, and commercial determination.  (Coming soon: Cost Analysis!) Each module creates an analysis based on the information you provide and generates a report, complete with attachments, calculations, citations, and charts.

    Our clients consist of businesses with procurement teams ranging from 4 to 250 individuals.  The system is modular; our implementation professionals will work with you to customize a solution that meets your needs without anything extra.  SpendLogic takes the pain out of procurement documentation. Schedule a quick 15-minute demo today and learn how.

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    Request your free SpendLogic trial license today! It’s 100% free – no commitment or credit card required.

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