242.7302  Requirements.

(a)

(1)  An in-depth CIPR as described at DFARS 242.7301(a)(1) shall be conducted only when--

(i)  A contractor has $50 million of qualifying sales to the Government during the contractor's preceding fiscal year; and

(ii)  The ACO, with advice from DCMA insurance/pension specialists and DCAA auditors, determines a CIPR is needed based on a risk assessment of the contractor's past experience and current vulnerability.

(2)  Qualifying sales are sales for which cost or pricing data were required under 10 U.S.C. 2306a, as implemented in FAR 15.403, or that are contracts priced on other than a firm-fixed-price or fixed-price with economic price adjustment basis. Sales include prime contracts, subcontracts, and modifications to such contracts and subcontracts.

(b)  A special CIPR that concentrates on specific areas of a contractor's insurance programs, pension plans, or other deferred compensation plans shall be performed for a contractor (including, but not limited to, a contractor meeting the requirements in paragraph (a) of this section) when any of the following circumstances exists, but only if the circumstance(s) may result in a material impact on Government contract costs:

(1)  Information reveals a deficiency in the contractor's insurance/pension program.

(2)  The contractor proposes or implements changes in its insurance, pension, or deferred compensation plans.

[FR Doc. 2010-29494 Filed 11-23-10; 8:45 am]

BILLING CODE 5001-08-P