4.1403
Contract clause
Include the 52.204-10 clause in all contracts of $40,000 or more unless the contract is exempt from FPDS reporting.
Overview
FAR 4.1403 requires contracting officers to include the clause at 52.204-10, "Reporting Executive Compensation and First-Tier Subcontract Awards," in all solicitations and contracts valued at $40,000 or more, unless the contract is exempt from reporting in the Federal Procurement Data System (FPDS) as outlined in FAR subpart 4.6. This clause mandates contractors to report certain executive compensation and subcontract award information, supporting federal transparency and accountability initiatives.
Key Rules
- Clause Inclusion Requirement
- The 52.204-10 clause must be included in all solicitations and contracts of $40,000 or more.
- Exemption for Non-FPDS Contracts
- Contracts not required to be reported in FPDS are exempt from this clause.
Responsibilities
- Contracting Officers: Must ensure the 52.204-10 clause is included in applicable contracts and solicitations.
- Contractors: Must comply with the reporting requirements if the clause is included in their contract.
- Agencies: Oversee compliance and ensure proper reporting to FPDS where required.
Practical Implications
- This section ensures that contractors provide transparency regarding executive compensation and major subcontract awards, which is critical for public accountability.
- Contractors should be aware of the reporting obligations triggered by this clause and confirm whether their contract is subject to FPDS reporting.
- Common pitfalls include failing to include the clause in eligible contracts or misunderstanding FPDS reporting exemptions.