Common Contractor Purchasing System Review Deficiencies

Posted by Annette Grotz on May 21, 2019

US Capital Building

According to the Defense Contract Management Agency (DCMA) the objective of a Contractor Purchasing System Review (CPSR) “is to evaluate the efficiency and effectiveness with which the contractor spends Government funds and complies with Government policy when subcontracting."

There are three types of reviews: the initial/comprehensive review, the special review, and the follow-up review. In this blog we’ll cover the initial/comprehensive review, which is the first-time analysis of a government contractor’s purchasing system, and how Costpoint can help contractors avoid the four most common CPSR deficiencies.

The Four Most Common Contractor Purchasing System Review Deficiencies

The Wisconsin chapter of the NCMA lists 2018’s four most common deficiencies in contractor purchasing system reviews as:

  1. Protecting the Government’s Interest when Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment
  2. Limitation on Use of Appropriated Funds to Influence Certain Federal Contracting and Financial Transactions (Anti-Lobbying)
  3. Price Analysis
  4. Defense Priorities and Allocation System (DPAS) Rating

How Costpoint can help government contractors avoid falling short in these main areas

Protecting the Government’s Interest when Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment

In Costpoint, users can flag a vendor as inactive and the system can be set up to give a warning before using a flagged vendor. If a user marks the subcontractor as not usable, the system will prevent any orders from being issued to them. Costpoint fosters collaboration between departments for active vendor and subcontractor management so all teams are up to date on a vendor’s rating and can contribute to impactful measurements that affect the vendor rating.

Limitation on Use of Appropriated Funds to Influence Certain Federal Contracting and Financial Transactions (Anti-Lobbying)

Costpoint has a customizable workflow in which an approval can be required to ensure that said vendors are anti-lobby before a PO can be cut to them. With user-defined information fields, there are many ways to label and manage vendors.

Price Analysis

Costpoint has request for quotes (RFQ) and vendor quotes, which can show a price analysis was performed. Users can manage RFQs by item and by vendor.

Defense Priorities and Allocation System (DPAS) Rating

DPAS  is a standard field in Costpoint project setup and automatically flows to purchase requisitions and then to purchase orders. Made in America and other contract requirements can be handled through standard text fields. This text then flows down from the purchase requisition to the purchase order.

For more information on the 24 elements in the CPSR you will find a Contractor Purchasing System Review Guidebook here. And to discover what other government contractors have to say about their experience with a CPSR, get your copy of  Deltek’s 2019 Government Contracting Industry Study 

The CPSR is just one of the numerous compliance requirements that government contractors must adhere to throughout the life of their project. Costpoint procurement helps companies of all sizes effectively manage subcontractors and automate government contract flow downs, while supporting compliance and analytical needs at every level of their projects.

Catch this on-demand Costpoint Procurement webinar to learn more about how it can help you maintain a state of CPSR audit readiness.  

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