4.1401
Applicability
FAR 4.1401 requires reporting of executive compensation and first-tier subcontract awards for contracts of $40,000 or more, but never requires disclosure of classified information.
Overview
FAR 4.1401 establishes the applicability of Subpart 4.14, which governs the reporting of executive compensation and first-tier subcontract awards. This section clarifies that the requirements apply to all contracts valued at $40,000 or more, ensuring that contractors and agencies understand when reporting obligations are triggered. It also specifies that only first-tier subcontractor information must be reported, streamlining compliance and reducing unnecessary data collection. Importantly, the regulation explicitly states that classified information is not required to be disclosed under this subpart, protecting sensitive government data.
Key Rules
- Contract Value Threshold
- The reporting requirements apply to contracts valued at $40,000 or more.
- First-Tier Subcontractor Reporting
- Only information about first-tier subcontractors must be reported; lower-tier subcontracts are excluded.
- Classified Information Exclusion
- No requirement to disclose classified information under this subpart.
Responsibilities
- Contracting Officers: Ensure contracts meeting the $40,000 threshold include appropriate reporting clauses and do not require classified information disclosure.
- Contractors: Report required information for first-tier subcontractors only, and safeguard classified information.
- Agencies: Oversee compliance and ensure reporting is limited to first-tier subcontracts and unclassified data.
Practical Implications
- This section helps contractors determine when reporting obligations begin and limits the scope to first-tier subcontracts, reducing administrative burden. It also reassures contractors that classified information is protected. Common pitfalls include misunderstanding the contract value threshold or reporting beyond first-tier subcontracts.