Reporting Executive Compensation and First-Tier Subcontract Awards
FAR Subpart 4.14 requires contractors to report executive compensation and first-tier subcontract awards for contracts of $30,000 or more, promoting transparency in federal spending.
Overview
FAR Subpart 4.14 establishes requirements for federal contractors to report executive compensation and first-tier subcontract awards. This regulation is designed to increase transparency in federal spending by requiring contractors to disclose information about their highest paid executives and details of significant subcontracts. The subpart outlines the scope, applicability, reporting procedures, and the mandatory contract clause that must be included in applicable contracts. Contractors must submit this information to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS), ensuring that the government and the public have access to data on how federal funds are distributed and who benefits from them.
Key Rules
- Scope and Applicability
- Applies to contracts valued at $30,000 or more, with certain exceptions (e.g., classified contracts, individuals, or contracts with foreign entities performed outside the U.S.).
- Reporting Requirements
- Contractors must report executive compensation and first-tier subcontract awards within specified timeframes using the FSRS.
- Contract Clause
- Contracts meeting the threshold must include a clause mandating these reporting requirements.
Responsibilities
- Contracting Officers: Ensure inclusion of the reporting clause in applicable contracts and verify contractor compliance.
- Contractors: Accurately report executive compensation and first-tier subcontract awards in the FSRS within required deadlines.
- Agencies: Oversee compliance and provide guidance as needed.
Practical Implications
- This subpart exists to promote transparency and accountability in federal contracting.
- Contractors must establish internal processes to collect and report required data promptly.
- Failure to comply can result in contractual remedies or impact eligibility for future awards.