SectionUpdated April 16, 2026

    FAR 44.307Reports.

    Plain-English Summary

    FAR 44.307 explains how the Administrative Contracting Officer (ACO) must distribute reports and related correspondence after a Contractor Purchasing System Review (CPSR) or other purchasing system action. It covers distribution of CPSR reports, notifications that grant, withhold, or withdraw approval of a contractor’s purchasing system, and Government recommendations for improving an approved system, including the contractor’s response. The section identifies the minimum recipients: the cognizant contract audit office, other activities designated by the cognizant agency, and the contractor itself. In practice, this rule ensures that the audit, oversight, and program offices that rely on purchasing system information receive the same official record, while also giving the contractor visibility into findings and proposed improvements. It supports consistency, accountability, and follow-through on purchasing system determinations and corrective actions.

    Key Rules

    Distribute CPSR reports

    The ACO must send copies of CPSR reports to the required recipients. This ensures the official review results are shared with the audit and oversight community that has a need to know.

    Share approval decisions

    Notifications that grant, withhold, or withdraw approval of a contractor’s purchasing system must also be distributed. These decisions affect how the Government views the contractor’s purchasing controls and may influence future oversight and contract administration.

    Include improvement recommendations

    Government recommendations for improving an approved system must be distributed as well. This keeps all relevant offices informed of required or suggested corrective actions and helps track whether the contractor is addressing weaknesses.

    Provide the contractor a copy

    The contractor must receive the CPSR report, approval decision notices, and improvement recommendations. However, providing the contractor a copy of the contractor’s own response is optional, not mandatory.

    Minimum recipient list

    At a minimum, the ACO must distribute these materials to the cognizant contract audit office, activities prescribed by the cognizant agency, and the contractor. The rule sets a floor for distribution; agencies may require broader internal sharing if needed.

    Responsibilities

    Administrative Contracting Officer (ACO)

    Distribute copies of CPSR reports, approval/withholding/withdrawal notifications, and Government recommendations for improvement of an approved system to the required recipients. The ACO must also include the contractor’s response when distributing recommendations, although furnishing copies of that response to the contractor is optional.

    Cognizant Contract Audit Office

    Receive the distributed CPSR-related reports and notifications for audit awareness, oversight, and any follow-up actions within its responsibility.

    Activities Prescribed by the Cognizant Agency

    Receive the reports and notices designated by the cognizant agency so the appropriate program, procurement, or oversight offices can act on the information.

    Contractor

    Receive the CPSR report, system approval decision notices, and Government recommendations for improvement. The contractor may also have its response included in the distribution, but the Government is not required to furnish the contractor a copy of that response.

    Practical Implications

    1

    This section is mainly about information flow, not substantive approval criteria, but it is critical for keeping the CPSR record complete and visible to the right offices.

    2

    A common pitfall is failing to send the same official package to all required recipients, which can create gaps between audit, contracting, and oversight functions.

    3

    Another issue is confusion over the contractor’s response: the ACO must distribute the response with the recommendations, but giving the contractor a copy of that response is optional.

    4

    Contractors should expect that CPSR findings and approval decisions will be shared beyond the ACO, so responses should be written professionally and with the understanding that multiple Government offices may review them.

    5

    Contracting officers and ACOs should maintain a clear distribution record so there is no dispute about who received the report, the decision notice, and any recommended corrective actions.

    Official Regulatory Text

    The ACO shall distribute copies of CPSR reports; notifications granting, withholding, or withdrawing system approval; and Government recommendations for improvement of an approved system, including the contractor’s response, to at least- (a) The cognizant contract audit office; (b) Activities prescribed by the cognizant agency; and (c) The contractor (except that furnishing copies of the contractor’s response is optional).