Preparing for a Contractor Purchasing System Review (CPSR) might not be the most exciting project that you take on, but the importance of understanding and implementing a compliant purchasing system cannot be overemphasized.
Essentially, the purpose of a CPSR is to evaluate contractors’ systematic approach to spending government funds, and to confirm that government policies and procedures are being complied with. Some companies are unaware, as an example, that FAR clause 52.244-2 requires government consent, before awarding any subcontract that exceeds the simplified acquisition threshold (SAT). The CPSR is designed to provide the foundation for the DCMA to investigate and evaluate the adequacy of contractor purchasing systems.
The administrative contracting officer, or ACO, has responsibility to approve or deny a contractor’s purchasing system certification. Should a contractor’s purchasing system require improvement, then the DCMA, and ACO, can make recommendations to ensure compliance.
The DCMA has sole responsibility for CPSR’s, with the threshold for purchasing systems may be increasing from $25 million to $50 Million in 2020 (public commentary is still open at the time of writing). In light of this, the DCMA is eyeing providing new evaluation criteria that contractors may find advantageous for preapproval on RFPs.
Taxpayer Dollars Are Closely Monitored And Need To Be Spent Properly
Whatever type of product or service you are selling, as a government contractor, there are certain requirements that must be met, and policies and procedures to follow. Do not fall into the trap of thinking that a contractor purchasing system is “a thing” that can be bought off the shelf or can be trained on overnight. The reality is that a purchasing system integrates numerous moving parts. These include policies and procedures, training, software, file documentation, and signature authority. Any business that wants to be successful in dealing with these large contracts needs to ensure that they fulfill all of the requirements, and that they have a stringent compliance verification system in place.
Things To Take Into Consideration When Purchasing CPSR Software
Never forget that you are the customer, and that any company which sells CPSR software needs to understand your systems and requirements, and build their software to integrate with your current systems. Understandably any company will want to talk about the advantages and benefits of their system but the majority of those benefits will be negligible if their software does not work well with your software. Be prepared to ask questions, and ensure that you and your team can work with whichever company you choose before committing to them. System support is just as important as the software, a fact which many people tend to forget. After all, you want to be confident that the company behind the product will be in business for many years to come.
At SpendLogic, we integrate and deliver systems that work for you. This includes reviewing your company’s policies and procedures, providing on-site training for your staff, and being available when questions arise. We think of our customers as team members, who we work with and for, rather than clients. We focus on building relationships. It is these relationships that pay dividends when challenges arise down the line.