2.3 EXERCISE: CONTRACTORS' PURCHASING SYSTEMS REVIEW (CPSR) Directions 1. Working in groups, read the scenario below. 2. Answer the questions that follow. 3. Be prepared to present your responses to the class. Scenario ABC is a prime government contractor. It successfully implemented a number of multimillion dollar projects over the past few years. Over the last 4 years, ABC has been working on a $40 million project funded by the government. The project successfully ended 2 months ago. This was the largest project that ABC ever undertook. As evidenced by their past history, ABC has a proven track record to perform based on the terms and conditions of its contracts. Recently, ABC was awarded a $27 million project to complete in the next 12 months. Assume you are the Administrative Contracting Officer (ACO) and your boss has asked you to determine whether CPSR is required for the ABC contract. Questions 1. Based on the information in the scenario, would you recommend conducting a review to determine whether a CPSR is required for this contractor? Why? 2. How does the ACO determine the need for a CPSR? Management Concepts. See inside front cover for additional details