FAR 44.306—Disclosure of approval status.
Plain-English Summary
FAR 44.306 addresses disclosure of the approval status of a proposed subcontractor’s purchasing system. It tells the Administrative Contracting Officer (ACO) when and how to respond to a contractor’s request for information, including whether the subcontractor’s purchasing system has been approved, disapproved, or not yet reviewed. The section also makes clear that any information provided is only a snapshot in time: the Government does not have an ongoing duty to keep the contractor informed of later changes in that approval status. In practice, this means contractors may ask the ACO for status information when deciding whether to rely on a subcontractor’s purchasing system, but they cannot treat that information as a continuing certification. The rule exists to support informed subcontracting decisions while limiting Government responsibility for monitoring and updating contractors on subsequent changes. For contracting officers and contractors alike, the practical significance is that status checks should be made close to the time of reliance, and contractors should not assume an earlier approval remains valid without confirming current status.
Key Rules
ACO may disclose status
Upon request, the ACO may tell the contractor whether a proposed subcontractor’s purchasing system has been approved or disapproved. This is permissive disclosure, not a mandatory proactive notification process.
No duty to track changes
When the ACO provides status information, the ACO must caution the contractor that the Government will not keep the contractor advised of any later changes in that approval status. The contractor must therefore treat the information as time-sensitive.
Unreviewed systems must be identified
If the proposed subcontractor’s purchasing system has not been reviewed, the contractor must be told that fact. Silence or ambiguity is not enough when no review has occurred.
Contractor must request information
The section operates on request; the contractor is responsible for asking the ACO if it wants to know the approval status. The Government is not required to volunteer the information absent a request.
Responsibilities
Administrative Contracting Officer (ACO)
Respond to a contractor’s request by informing it whether the proposed subcontractor’s purchasing system is approved, disapproved, or not reviewed, and caution the contractor that the Government will not provide ongoing updates on any later change in status.
Contractor
Request status information when needed, rely on the ACO’s response as a current snapshot only, and avoid assuming that an approval remains in effect unless it is rechecked or otherwise confirmed.
Proposed subcontractor
No direct duty is stated in this section, but its purchasing system status is the subject of the ACO’s disclosure and may affect whether the contractor chooses to subcontract or how it manages subcontract oversight.
Practical Implications
Contractors should verify approval status close to award or before placing significant subcontracts, because an approval can change after the ACO’s response.
A prior approval should not be treated as a standing green light; contractors need internal controls to recheck status when circumstances change.
The ACO’s caution is important because contractors may otherwise assume the Government will notify them if a subcontractor’s system later becomes disapproved.
If the system has never been reviewed, the contractor should treat that as a meaningful risk indicator and consider whether additional oversight or a different subcontractor is needed.
This section helps avoid misunderstandings about Government responsibility: the Government may share status, but the contractor remains responsible for managing subcontracting risk.
Official Regulatory Text
Upon request, the ACO may inform a contractor that the purchasing system of a proposed subcontractor has been approved or disapproved, but shall caution that the Government will not keep the contractor advised of any changes in the approval status. If the proposed subcontractor’s purchasing system has not been reviewed, the contractor shall be so advised.