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FAR and DFARS › FAR Part 44: Subcontracting Policies and Procedures › Subpart 44.3

FAR 44.305-3 Withholding or withdrawing approval.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section tells the Administrative Contracting Officer (ACO) when to withhold or withdraw approval of a contractor's purchasing system, such as when there are major weaknesses, insufficient information, recurring noncompliance, or a need to protect the Government's interest. If approval is withheld or withdrawn, the ACO must notify the contractor in writing within 10 days after the in-plant review, specify the deficiencies to correct, and request a corrective action plan within 15 days. This matters because losing approval can affect how the contractor buys under the contract and requires prompt corrective action.

Applies to: Contractors whose purchasing systems are reviewed by an ACO

What it requires

  • Correct the deficiencies specified by the ACO to qualify the system for approval
  • Furnish a plan within 15 days for accomplishing the necessary actions if requested by the ACO

Key terms: ACO · purchasing system · withhold or withdraw approval · in-plant review · deficiencies

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) The ACO shall withhold or withdraw approval of a contractor's purchasing system when there are major weaknesses or when the contractor is unable to provide sufficient information upon which to make an affirmative determination. The ACO may withdraw approval at any time on the basis of a determination that there has been a deterioration of the contractor's purchasing system or to protect the Government's interest. Approval shall be withheld or withdrawn when there is a recurring noncompliance with requirements, including but not limited to—

(1) Certified cost or pricing data (see 15.403);

(2) Implementation of cost accounting standards (see 48 CFR chapter 99);

(3) Advance notification as required by the clauses prescribed in 44.204; or

(4) Small business subcontracting (see subpart 19.7).

(b) When approval of the contractor's purchasing system is withheld or withdrawn, the ACO shall within 10 days after completing the in-plant review (1) inform the contractor in writing, (2) specify the deficiencies that must be corrected to qualify the system for approval, and (3) request the contractor to furnish within 15 days a plan for accomplishing the necessary actions. If the plan is accepted, the ACO shall make a follow-up review as soon as the contractor notifies the ACO that the deficiencies have been corrected.

Sections it refers to

  • 15.403 Obtaining certified cost or pricing data.
  • 44.204 Contract clauses.

Sections that refer to it

← 44.305-2 Notification. · 44.306 Disclosure of approval status. →

Rule changes for FAR Part 44

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 44.305-3 Withholding or withdrawing approval · SpendQuery