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Acquisition Policy Flash! 16-01

Reminder!

Increasing the Contractor Response Rate for Contract Records in the System for Award Management (SAM)

Purpose:  To reinforce with all VA Contracting Officers (CO) the requirement to ensure their service contractors enter FY15 data on covered contracts into SAM NLT December 15, 2015.  This annual requirement has been levied by the Office of Federal Procurement Policy (OFPP) and is related to the annual Service Contract Inventory (SCI).  It requires immediate action on the part of VA COs to ensure compliance with the FAR clauses cited below.

Dated:  December 7, 2015

Effective Date:  Immediately

Federal Acquisition Regulation (FAR) or VA Acquisition Regulation Parts Impacted:  FAR 4.1705(a), Clause 52.204-14 and Clause 52.204-15

Background:  Section 743 of Division C of the Fiscal Year (FY) 2010 Consolidated Appropriations Act (Pub. L. No. 111-117) requires executive agencies covered by the Federal Activities Inventory Reform (FAIR) Act (Pub. L. 105-270), except for the Department of Defense, to prepare an annual inventory of the service contracts and to analyze that inventory to determine if the mix of Federal employees and contractors is effective or if rebalancing may be required.

The Office of Federal Procurement Policy (OFPP) issued guidance addressing the requirements of section 743 on November 5, 2010 and December 9, 2011.  On December 31, 2013, the Federal Acquisition Regulatory Council issued a rule, effective January 30, 2014, which included requiring contractors to input annually by October 31, for services performed under this contract during the preceding Government fiscal year (October 1-September 30).

As prescribed in 4.1705(a), solicitations and contracts must include Clause 52.204-14, Service Contract Reporting Requirements for services (including construction) that meet or exceed the thresholds at 4.1703; and solicitations and contracts must include Clause 52.204-15 Service Contract Reporting Requirements for Indefinite-Delivery Contracts for services (including construction) where one or more orders issued thereunder are expected to each meet or exceed the thresholds at 4.1703.

Applicability:  This Acquisition Flash applies to all VA Heads of the Contracting Activity (HCA) and COs with contract subject to the reporting requirements.

Action Required:  COs shall reinforce with their contractors with applicable contracts, the requirements of FAR 52.204-14(c) and 52.204-15(c) which state that Contractors shall report the following information:

(1)  Contract number and, as applicable, order number.

(2)  The total dollar amount invoiced for services performed during the previous Government fiscal year under the contract, order number.

(3)  The number of Contractor direct labor hours expended on the services performed during the previous Government fiscal year.

(4)  Data reported by subcontractors under paragraph (f) of this clause.

As per 52.204-14(d) and 52.204-15(d); the information required in paragraph (c) of this clause shall be submitted via the internet at www.sam.gov External link to a government website (See SAM User Guide).  If the Contractor fails to submit the report in a timely manner, the contracting officer will exercise appropriate contractual remedies.  In addition, the Contracting Officer will make the Contractor’s failure to comply with the reporting requirements a part of the Contractor’s performance information under FAR subpart 42.15 External link to a government website.

As per 52.204-14(e) and 52.204-15(e); agencies will review Contractor reported information for reasonableness and consistency with available contract information.  In the event the agency believes that revisions to the Contractor reported information are warranted, the agency will notify the Contractor no later than November 15.  By November 30, the Contractor shall revise the report, or document its rationale for the agency.

As per 52.204-14(f) and 52.204-15(f);

(1)  The Contractor shall require each first-tier subcontractor providing services under this contract, with subcontract(s) each valued at or above the thresholds set forth in 4.1703(a)(2) External link to a government website, to provide the following detailed information to the Contractor in sufficient time to submit the report:

(i)  Subcontract number (including subcontractor name and DUNS number); and

(ii)  The number of first-tier subcontractor direct-labor hours expended on the services performed during the previous Government fiscal year.

(2) The Contractor shall advise the subcontractor that the information will be made available to the public as required by section 743 of Division C of the Consolidated Appropriations Act, 2010.

Additional Information:  Questions or concerns should be addressed to the Office of Acquisition and Logistics (003A), Procurement Policy and Warrant Management Service (003A2A) at (202) 632-5288 or va.procurement.policy@va.gov.