4.1402 Procedures
Source: FAR 4.1402 on acquisition.gov
Agencies and contractors must ensure accurate, timely reporting of executive compensation and first-tier subcontract awards, with strict oversight and remedies for noncompliance.
Overview
FAR 4.1402 outlines the procedures agencies and contractors must follow to comply with the reporting requirements for executive compensation and first-tier subcontract awards, as mandated by FAR clause 52.204-10. Agencies are responsible for ensuring contractor compliance, reviewing reports quarterly, and addressing inconsistencies. Contractors must use data from the Federal Procurement Data System (FPDS) to complete their reports, and notify contracting officers if FPDS data is incorrect. Failure to comply can result in contractual remedies and negative performance evaluations. There is an exception for contractors and subcontractors with gross income under $300,000 in the previous tax year.
Key Rules
- Agency Oversight and Review
- Agencies must review contractor reports quarterly and require corrections or explanations for inconsistencies with contract information.
- Use of FPDS Data
- Contractors should use pre-populated FPDS data for reporting and notify the contracting officer if errors are found.
- Contractual Remedies for Noncompliance
- Contracting officers must take appropriate action if contractors fail to comply, including documenting the failure in performance records.
- Reporting Exception
- Contractors and subcontractors with less than $300,000 gross income in the previous tax year are exempt from reporting.
Responsibilities
- Contracting Officers: Review reports, address inconsistencies, correct FPDS data, enforce compliance, and document noncompliance in performance records.
- Contractors: Submit accurate reports, use FPDS data, notify of errors, and correct inconsistencies or provide explanations.
- Agencies: Oversee compliance and review reports via http://www.fsrs.gov.
Practical Implications
- Ensures transparency in executive compensation and subcontract awards.
- Impacts contract administration and performance evaluations.
- Common issues include data inconsistencies and failure to report, which can affect contractor ratings and future awards.
(a) Agencies shall ensure that contractors comply with the reporting requirements of 52.204-10, Reporting Executive Compensation and First-Tier Subcontract Awards. Agencies shall review contractor reports on a quarterly basis to ensure the information is consistent with contract information. The agency is not required to address data for which the agency would not normally have supporting information, such as the compensation information required of contractors and first-tier subcontractors. However, the agency shall inform the contractor of any inconsistencies with the contract information and require that the contractor correct the report, or provide a reasonable explanation as to why it believes the information is correct. Agencies may review the reports at http://www.fsrs.gov" target="_blank">http://www.fsrs.gov.
(b) When contracting officers report the contract action to the Federal Procurement Data System (FPDS) in accordance with FAR subpart 4.6, certain data will then pre-populate from FPDS, to assist contractors in completing and submitting their reports. If data originating from FPDS is found by the contractor to be in error when the contractor completes the subcontract report, the contractor should notify the Government contracting officer, who is responsible for correcting the data in FPDS. Contracts reported using the generic entity identifier allowed at FAR 4.605(c)(2) will interfere with the contractor’s ability to comply with this reporting requirement, because the data will not pre-populate from FPDS.
(c) If the contractor fails to comply with the reporting requirements, the contracting officer shall exercise appropriate contractual remedies. In addition, the contracting officer shall make the contractor’s failure to comply with the reporting requirements a part of the contractor’s performance information under subpart 42.15.
(d) There is a reporting exception in 52.204-10(g) for contractors and subcontractors who had gross income in the previous tax year under $300,000.