We prepared responses for our client to questions from DCMA showing that our client’s purchasing system was adequate.
During a Contractor Purchasing System Review (CPSR) conducted by the Defense Contract Management Agency (DCMA), our team assisted our client in preparing comprehensive responses to a variety of inquiries. These inquiries covered several aspects of the client’s operations, specifically focusing on their policies and procedures regarding intra/intercompany and affiliate transactions, make or buy decisions, the basis for determining payment amounts (cost or price), and adherence to established policies.
In response to questions regarding intra/intercompany and affiliate transactions, our client provided detailed information about their protocols and practices. This included outlining the guidelines and controls in place to ensure transparency, fair pricing, and compliance with applicable regulations. Additionally, they shared specifics about the documentation maintained to support these transactions.
Regarding make or buy decisions, our client elaborated on their systematic approach to evaluating whether to self-perform or outsource work to external vendors. They highlighted the factors considered during this decision-making process, such as cost analysis, capacity, technical expertise, and quality control. Furthermore, they provided evidence of a well-documented and consistent decision-making framework.
To address inquiries about the basis for determining payment amounts, our client furnished relevant policies and procedures that underscore their commitment to cost-based pricing. They demonstrated how their cost accounting system captures and allocates expenses accurately, ensuring that amounts paid are supported by actual costs incurred.
Lastly, our client demonstrated their dedication to following the established policies by providing evidence of their adherence. They shared examples of internal audits, compliance monitoring activities, and corrective actions taken to address any identified gaps or deviations. They emphasized their commitment to continuous improvement and their proactive approach to rectifying non-compliance issues promptly.
Overall, our team worked closely with our client to prepare comprehensive and detailed responses to the wide range of questions posed by DCMA during the CPSR. Through this collaborative effort, we ensured that our client’s policies and procedures for intra/intercompany and affiliate transactions, make or buy decisions, cost-based pricing, and policy adherence were effectively communicated and aligned with DCMA’s expectations.
