2025-04002NoticeWallet

OMB Greenlights More Subcontract Consent Busywork

Published Date: 3/13/2025

Notice

Summary

The government is asking contractors to keep sharing info when they want to hire subcontractors or review their buying systems. This helps make sure everything is fair and smart with public money. If you’re a contractor working with the government, get ready to keep submitting these details, and don’t forget to send your comments by April 14, 2025!

Analyzed Economic Effects

5 provisions identified: 0 benefits, 5 costs, 0 mixed.

Detailed Subcontract Consent Filings Required

If you are a prime contractor seeking the contracting officer's written consent to award a subcontract under FAR 52.244-2, you must submit specific information including: a description of the supplies/services being subcontracted; the type of subcontract; the proposed subcontractor; the proposed price; any required certified cost or pricing data and Certificate of Current Cost or Pricing Data; any required Cost Accounting Standards Disclosure Statement or Certificate; and a negotiation memorandum covering elements (A) through (G) listed in the clause.

Purchasing System Reviews Triggered at $25 Million

An administrative contracting officer (ACO) will consider a Contractors' Purchasing System Review (CPSR) if a contractor's sales to the Government are expected to exceed $25 million during the next 12 months (excluding certain competitively awarded fixed-price and commercial sales). The ACO will determine at least every three years whether a purchasing system review is necessary, and agency heads may raise or lower the $25 million review level.

Estimated Annual Compliance Burden

The information collection estimates 2,515 respondents, 7,065 total annual responses, and 49,635 total annual burden hours for the Subcontract Consent and Contractors' Purchasing System Review collection (OMB Control No. 9000-0149).

Advance Notice Required Before Placing Certain Subcontracts

Prime contractors must notify the contracting officer reasonably in advance of placing any subcontract or modification for which consent is required under FAR 52.244-2. This advance notification is used to ensure statutory compliance under 10 U.S.C. 3322(c) and 41 U.S.C. 3905.

Short Timelines for Responding to Review Findings

If recommendations are made to improve an approved purchasing system, contractors must reply within 15 days with their position. If approval is withheld or withdrawn, the ACO must inform the contractor within 10 days of the in-plant review and request a corrective action plan to be furnished within 15 days.

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Key Dates

Published Date
3/13/2025

Department and Agencies

Department
Independent Agency
Agency
Defense Department
General Services Administration
National Aeronautics and Space Administration
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