Compliance does not have to be complicated. For many in the government contracting world, the thought of a Contractor Purchasing System Review (CPSR) is a bit overwhelming. By taking proactive steps to prepare for such a review, you can alleviate a lot of undue stress for your contracts team, as well as the rest of the organization.

What is a Government Approved Purchasing System? 

A purchasing system involves all the activities required by FAR Subpart 44 that relate to a prime contractor’s purchasing of goods and services. It is considered approved when it has “passed” a CPSR performed by a federal regulatory agency, typically the Defense Contract Management Agency (DCMA).


When are You Eligible? 

The current $25M threshold referenced in FAR 44.302(a) has been in effect since 1996. DCMA more recently issued a Class Deviation Memo raising the threshold to $50M based on an analysis of inflation and acceptable risk. A FAR case has been opened to raise the threshold to $50M.

Benefits of an Approved Purchasing System 

  • Reduced government transactional oversight
  • Limited notification or consent requirements
  • Reduced cycle time
  • Increased contract opportunities in future evaluated procurements

Key Indicators of a Compliant System 

  • Competition is maximized
  • Documented standardized business processes
  • Effectiveness of negotiation
  • Subcontractor performance is maximized and compliance is monitored
  • Satisfactory small business program
  • Self-assessment

A Contractor Purchasing System Review is just that, a “Review” — it is NOT an audit.  You will most likely receive deficiencies, but you can keep them to a minimum by being prepared.  Download our whitepaper for four ways to prepare for a Contractor Purchasing System Review (CPSR).

Download the CPSR Whitepaper