Contractor Purchasing System Review

A contractor purchasing system review (CPSR) is an on-site review of an institution's purchasing system. The Office of Naval Research (ONR) uses CPSRs to evaluate the efficiency and effectiveness with which the institution spends government funds and complies with government policies when subcontracting. The review provides the administrative contracting officer (ACO) with information which is used as a basis for granting or withdrawing approval of the institution's purchasing system.

During the review, ONR's ACO performs a risk assessment for each institution with annual expenditures, under Department of Defense and NASA awards, in excess of $25 million. The ACO considers the volume, complexity and dollar value of the institution's purchasing and subcontracting activity and the institutions past performance (e.g., prior CPSRs or independent audits). Based on the ACO's recommendations, an annual CPSR schedule is developed.