d.  Purchasing Systems

The following comments were submitted regarding purchasing systems:

Comment: DFARS 252.244-7001 requires purchasing policies that "comply with the Federal Acquisition Regulation (FAR) and the Defense FAR Supplement (DFARS)." The respondent requested that the rule clarify that requirements being imposed on contractors are done via contract clauses.

Response: All contractual requirements are identified and accomplished through contract clauses. There is no need to issue such a clarifying statement in this rule.

Comment: The definitions of subcontracts and purchase orders should be revised to exclude agreements with vendors that would normally be applied to a contractor's G&A expenses or indirect costs.

Response: Because the Government reimburses contractors for its applicable share of indirect expenses, it would be inappropriate to revise the definitions of subcontracts and purchase orders to exclude agreements with vendors that would normally be applied to a contractor's G&A expenses or indirect costs.

Comment: Purchasing system criteria under items 252.244-7001(c)(2) and (c)(19) in the purchasing system clause appear to be redundant.

Response: Purchasing system criteria under 252.244-7001(c)(2) and (c)(19) are not redundant. The criterion under (c)(2) requires the contractor to include all flowdown clauses, including terms and conditions and any other clauses needed to carry out the requirements of the prime contract, in all applicable purchase orders and subcontracts, while the criterion under (c)(19) requires the contractor to establish and maintain policies and procedures to ensure the requirements of (c)(2) are accomplished.

Comment: The rule should establish a threshold under purchasing system criterion (c)(4) for the documentation of purchase orders (e.g., $3,000).

Response: Since certain requirements should apply to all purchases, no threshold has been added in (c)(4).

Comment: The purchasing system criterion under item (c)(8) should be revised to be consistent with FAR part 15.

Response: This rule does not conflict with the extensive language under FAR part 15. The wording in (c)(8) and FAR part 15 is not inconsistent.

Comment: Purchasing system criteria under items (c)(10) and (c)(22) appear to be redundant.

Response: Purchasing system criteria under 252.244-7001(c)(10) and (c)(22) are not redundant. The criterion under (c)(10) requires the contractor to perform timely and adequate cost or price analysis and technical evaluation for each subcontractor and supplier proposal or quote to ensure fair and reasonable subcontract prices, while the criterion under (c)(22) requires the contractor to establish and maintain procedures to ensure the requirements of (c)(10) are accomplished.

Comment: Notification of subcontract awards that contain FAR and DFARS clauses allowing for Government audits should not be required in the purchasing system criterion under item (c)(16) since these clauses are required flowdowns on all direct-funded subcontracts.

Response: The notification requirement under purchasing system criterion (c)(16) is appropriate. This criterion does not require flowdown of FAR and DFARS clauses, but instead establishes the requirement that the contractor notify the Government of the award of all subcontracts that contain the FAR and DFARS flowdown clauses that allow for Government audit of those subcontracts, and ensure the performance of audits of those subcontracts.

Comment: The purchasing system criterion under item (c)(23) should be clarified so that the requirements are applicable to first-tier subcontractors.

Response: The suggested change to (c)(23) would make it inconsistent with the definition in FAR 44.101. Therefore, no change has been made.