4.1401
Applicability
FAR 4.1401 requires contractors to report first-tier subcontract awards for contracts of $30,000 or more, but does not require 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 $30,000 or more, ensuring broad coverage across federal contracting. Importantly, it specifies that contractors are not required to disclose classified information as part of their reporting obligations. Additionally, the reporting requirement for subcontract information is limited to first-tier subcontractors, meaning only direct subcontractors to the prime contractor must be reported, not lower-tier subcontracts.
Key Rules
- Applicability Threshold
- The subpart applies to contracts valued at $30,000 or more.
- Classified Information Exclusion
- Contractors are not required to disclose classified information under this subpart.
- First-Tier Subcontractor Reporting
- Only first-tier subcontractor information must be reported; lower-tier subcontracts are excluded.
Responsibilities
- Contracting Officers: Ensure contract value meets the $30,000 threshold and communicate reporting requirements to contractors.
- Contractors: Report required information for first-tier subcontracts on applicable contracts and avoid disclosing classified information.
- Agencies: Oversee compliance and ensure proper reporting mechanisms are in place.
Practical Implications
- This section ensures transparency in federal contracting by requiring reporting on significant contracts and their first-tier subcontracts.
- Contractors must be diligent in identifying which subcontracts qualify as first-tier and ensure timely, accurate reporting.
- Excluding classified information protects national security while maintaining accountability for contract awards.