4.1703
Reporting requirements
FAR 4.1703 mandates strict reporting and annual inventory requirements for service contracts and subcontracts above specific thresholds, ensuring transparency and oversight of federal service contracting.
Overview
FAR 4.1703 establishes the reporting requirements for service contracts and first-tier subcontracts, detailing when and how contractors and agencies must report service contract data. The regulation sets specific thresholds based on contract type and value, and outlines agency responsibilities for reviewing, compiling, and submitting service contract inventories to the Office of Management and Budget (OMB). The goal is to ensure transparency and oversight of service contracting activities across the federal government.
Key Rules
- Reporting Thresholds
- Reporting is required for all cost-reimbursement, time-and-materials, and labor-hour service contracts/orders above the simplified acquisition threshold, and for fixed-price service contracts/orders above specified dollar thresholds depending on the fiscal year (e.g., $500,000 or more from FY2016 onward).
- Subcontract Reporting
- First-tier subcontracts for services must be reported if they meet the same thresholds as prime contracts.
- Agency Oversight and Deadlines
- Agencies must ensure contractor compliance with reporting clauses (52.204-14 and 52.204-15), review reported data for accuracy, and notify contractors of required revisions by November 15. Contractors must respond by November 30.
- Annual Inventory and Publication
- Agencies must compile and submit an annual inventory of service contracts to OMB by January 15, post it on their website, and publish a Federal Register notice by February 15.
Responsibilities
- Contracting Officers: Ensure contracts include the correct reporting clauses and monitor contractor compliance.
- Contractors: Submit accurate service contract reports as required by contract clauses and respond to agency feedback by deadlines.
- Agencies: Review contractor reports, compile annual inventories, submit to OMB, and publish required notices.
Practical Implications
- This section ensures federal agencies track and manage their reliance on service contractors, supporting transparency and policy oversight.
- Contractors must be diligent in timely and accurate reporting to avoid compliance issues.
- Agencies must coordinate internal reviews and meet strict annual deadlines, with potential for public scrutiny of posted inventories.