* Previous CPSR recommendations and habitually repeated recommendations made to the contractor;
If a contractor has recently met the requirements for a CPSR, there will be no approval status history.
The government will decide to perform a CPSR based on whether previous recommendations were major recommendations (high risk) or minor ones (low risk).
A CPSR can help to identify cost-reduction factors, cost-reimbursement contracts, and subcontracts.
In these situations, it is the goal of the CPSR team to review the contractor's costsavings initiatives.
The results of these audits assist the CPSR team in determining contractor risks from an enterprise prospective.
The CPSR teams do not use an established scoring system when performing the initial risk assessment.
The firm's manager of subcontracts was contacted by its cognizant Defense Contract Management Agency (DCMA) and informed that her organization would be subjected to a two-week CPSR within the next nine months.
Why was the manager so concerned about the upcoming CPSR?
The contractor's senior management welcomed the opportunity to host a CPSR. They viewed the CPSR as an opportunity for their largest customer to review and benchmark their purchasing and subcontracts function against stringent government requirements.
government's remedy for a prime contractor's failure to pass a CPSR is the withholding or withdrawal of that firm's subcontracting system.
In addition to these problems, a failed CPSR can have devastating effects on the future of the firm, such as