4.1403
Contract clause
Include FAR clause 52.204-10 in all contracts of $30,000 or more unless the contract is exempt from FPDS reporting.
Overview
FAR 4.1403 mandates the inclusion of the clause at 52.204-10, "Reporting Executive Compensation and First-Tier Subcontract Awards," in all federal solicitations and contracts valued at $30,000 or more, unless the contract is exempt from Federal Procurement Data System (FPDS) reporting. This clause requires contractors to report specific executive compensation and subcontract award information to promote transparency in federal spending. The regulation ensures that contractors and their first-tier subcontractors provide data that supports government-wide reporting initiatives.
Key Rules
- Clause Inclusion Requirement
- Contracting officers must include FAR 52.204-10 in all solicitations and contracts at or above $30,000.
- Exemption for Non-FPDS Contracts
- Contracts not required to be reported in FPDS (as detailed in FAR Subpart 4.6) are exempt from this clause.
Responsibilities
- Contracting Officers: Must ensure the clause is included in applicable solicitations and contracts.
- Contractors: Must comply with the reporting requirements outlined in FAR 52.204-10 if the clause is present.
- Agencies: Must oversee compliance and ensure proper reporting to FPDS where required.
Practical Implications
- This section exists to support federal transparency and accountability by requiring reporting of executive compensation and subcontract awards.
- Contractors should be aware of the reporting obligations triggered by this clause and ensure systems are in place for compliance.
- Common pitfalls include failing to recognize when the clause applies or misunderstanding FPDS reporting exemptions.