For government contractors, an effective purchasing system is critical to managing subcontracting risk and remaining compliant. Under FAR and DFARS requirements, contractors may be subject to a Contractor Purchasing System Review, or CPSR, which evaluates how efficiently and effectively government funds are spent when subcontracting. An approved purchasing system can reduce the need for consent to subcontract, improve audit outcomes, and strengthen your competitive position during source selections. During a CPSR, agencies review purchasing policies, procedures, documentation, pricing practices, training, and subcontract file compliance. Inconsistent documentation or undocumented processes can lead to findings — resulting in loss of the ability to subcontract without approval or even payment withholds. Cherry Bekaert’s government contracting advisors help contractors design, document, assess purchasing systems, prepare for CPSRs, and navigate DCMA and other agency reviews with confidence — so your system supports both compliance and growth.
Read our full guide to Contractor Business Systems Series: Part 4 — Contractor Purchasing System: When Is It Required and What Are the Benefits of an Approved System?
