Purchasing System Audit

Scope

Examines purchasing policies and procedures, competitive sourcing practices, price analysis and cost analysis documentation, subcontract administration, small business subcontracting efforts, and compliance with FAR and contract flow-down requirements. Reviews a sample of purchase orders for adequacy of price reasonableness determinations.

Frequency

Conducted approximately every 3 years for contractors with approved purchasing systems, or more frequently if significant deficiencies are identified. Initial review required when a contractor first seeks purchasing system approval to raise the consent threshold.

What to Expect

Auditors review purchasing policies, test a statistical sample of purchase orders for compliance, and evaluate the adequacy of competition and price analysis. The audit results in a determination of "approved," "conditionally approved," or "disapproved." Contractors with approved systems benefit from higher consent-to-subcontract thresholds, reducing administrative burden.

Key Documents

• FAR 44.3 — Contractors' Purchasing Systems Reviews
• DFARS 252.244-7001 — Contractor Purchasing System Administration
• Purchasing policies and procedures manual
• Sample purchase orders with price analysis
• Small Business Subcontracting Plan and reports
• Source selection documentation

Other post-award Audits

Other DCAA Audit Types