4.1402
Procedures
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.