CPSR

It's a determination that's made on a risk-adjusted basis.  Factors include whether a CPSR was conducted previously and the amount of time since that past review, total value of government contracts, types of contracts being placed between contractor and gov't, growth in value of contracts over time, and results of other audits.  The CPSR team has a very limited scope for conducting reviews each year and they try to revisit prior CPSRs every three years.  New CPSRs occur each year, but not many.

If you have questions regarding the CPSR, check out the CPSR guidebook for a basic overview.  You can find it here:  http://www.dcma.mil/policy/109/CPSR_Guidebook.pdf.  I have partnered with Mark Hijar at Procurelinx on a couple of CPSR's and he does excellent work.  If you have one coming up, touch base and I'll make an introduction.

Have you read FAR 44.302(a)?

Quote

(a) The ACO shall determine the need for a CPSR based on, but not limited to, the past performance of the contractor, and the volume, complexity and dollar value of the subcontracts. If a contractor’s sales to the Government (excluding competitively awarded firm-fixed-price and competitively awarded fixed-price with economic price adjustment contracts and sales of commercial items pursuant to Part 12) are expected to exceed $25 million during the next 12 months, perform a review to determine if a CPSR is needed. Sales include those represented by prime contracts, subcontracts under Government prime contracts, and modifications. Generally, a CPSR is not performed for a specific contract. The head of the agency responsible for contract administration may raise or lower the $25 million review level if it is considered to be in the Government’s best interest.