Acquisition Policy Flash! 11-08
Purpose: This Acquisition Policy Flash provides guidance on implementing the Federal Funding Accountability and Transparency Act (FFATA) (PL 109-282 as amended by section 6202 of PL 110-252), which results in a new FAR requirement for contractors to report subcontract awards and executive compensation. FAC 2005-044 was issued July 8, 2010 implementing an interim rule entitled Reporting Executive Compensation and First-Tier Subcontract awards as part of FFATA. More detailed information, including frequently asked questions and the reporting architecture, can be found in the applicable Office of Management and Budget memorandum dated August 27, 2010 located at http://www.whitehouse.gov/sites/default/files/omb/open/Executive_Compensation_Reporting_08272010.pdf.
Dated: February 4, 2011
Effective Date: N/A
Background: FFATA is intended to provide public visibility of Federal contracting and the reporting single website to do this is USAspend.gov; data is populated from Federal Procurement Data System Next Generation (FPDS-NG). Affected systems are: 1)Electronic Subcontract Reporting System (eSRS) and FFATA’s Subaward Reporting System (FSRS), which is a newly created module under eSRS, and the Central Contractor Registration (CCR).
a. Applicability: The rule is applicable to solicitations issued after July 8, 2010, and resulting contracts. The rule is applicable to all Federal Awards and Grants with a value of $25,000 or more. The clause is not required in classified solicitations and contracts, and contracts with individuals.
Contracting Officers shall:
b. Prime Contractor Responsibilities: The subcontract reporting requirements and the executive compensation reporting requirements have different beginning dates, reporting schedules, and exceptions.
(1) Reporting Subcontracts: For contracts that include the clause at FAR 52.204-10, prime contractors are responsible for reporting their subcontract information, for any first-tier subcontracts of $25,000 or more (including all options), except for classified contracts and contracts with individuals, by the end of the month following the month of award, at FSRS, in accordance with the following phase-in schedule:
If a prime contractor, in the previous tax year, had gross income, from all sources, of under $300,000, the contractor is exempt from the requirement to report subcontract awards. Likewise, if a subcontractor, in the previous tax year, had gross income, from all sources, of under $300,000, the prime contractor does not need to report subcontracts awarded to that subcontractor.
(2) Reporting Executive Compensation: For contracts that include the clause 52.204-10, prime contractors are responsible for:
(3) Exceptions to Reporting: There are several exceptions to the requirement to report executive compensation and thresholds to be met before the requirement applies. Many contractors will be exempt from reporting this information for themselves and for some of their subcontractors. Reporting is not required if:
c. Contracting Officers (CO) Responsibilities: Agencies are responsible for quarterly verification of contractor reports in FSRS. Ultimately, this is a CO responsibility. COs may elect to delegate this responsibility to a contract specialist or others, but the COs remain responsible for accomplishment of the quarterly verification of contractor reports in FSRS to comply with the requirements of FFATA.
The verification is limited to ensuring consistency with contract information that is readily available to the CO. The review is necessary because the integrated system will cross check contractor entries against FPDS data and anomalies in contract information will require correction by either the contractor or the contracting officer. Examples of data fields that COs must verify include:
The contractor’s reporting requirements include many data elements that COs will not know and, therefore, are not responsible for verifying, such as:
The CO shall inform the contractor of any inconsistencies found with the contract data and require that the contractor correct the report or provide a reasonable explanation as to why it believes the information is correct. The CO shall document the results of the review and verification of the report data, including any corrective action required and accomplished by the contractor, in the official contract file.
Because the FSRS is a subcomponent of eSRS, users already registered in eSRS will have access to FSRS to verify contractor reporting. Others needing access to eSRS/FSRS for purposes of FFATA reporting verification should register at the eSRS site. Registration instructions can be found at https://esrs.symplicity.com/government_registration. Contractor reports may be accessed either via the www.esrs.gov site or directly at the www.fsrs.gov site.
POINT OF CONTACT: Questions concerning this Acquisition Policy Flash should be directed to Mitchell Gasbarra at firstname.lastname@example.org or at (202) 461-0628 or to Marilyn Harris.