Federal Funding Accountability and Transparency Act

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Contents

Introduction

The Federal Funding Accountability and Tranparency Act (FFATA) was signed on September 26, 2006. It applies to Federal Awards including grants, subgrants, loans, awards, cooperative agreements and other forms of financial asssitance as well as contracts, subcontracts, purchase orders, task orders, and delivery orders.

The purpose of the act is to increase transparency and government accountability, reduce wasteful spending, and provide the public with contract information via the internet on a single, searchable website.

Contractors are required to report subcontract awards in the FSRS system. FSRS is a module of the Electronic Subcontracting Reporting System (eSRS).

FAR 52.204-10 - Reporting Executive Compensation and First-Tier Subcontract Awards - Implements this requirement

Regulations

  • Public Law 109-282
  • Public Law 110-252
  • FAR 52.204-10


Guidance

OMB Guidance; https://www.fsrs.gov/

  • Commercial - COTS Items are NOT exempt
  • Sub Award Reporting is required on for first-tier subcontractors

Information Collected

  • Federal Financial Assistance
  • Federal Expenditure Information
    • Executive Compensation
    • Subcontract Information

Executive Compensation

Rules apply when:

  • The contractor, in its preceding fiscal year, received: (a) at least 80% of its annual gross revenue from federal contracts, subcontracts, loans, grants, and cooperative agreements and (b) $25M or more in annual gross revenues from federal contracts, subcontracts, loans, grants, and cooperative agreements, and
  • The public does not already have access to information about the compensation of the relevant executives via the contractor's SEC reports.

If a contractor meets these criteria, they must:

  • Report the names and Total Compensation of each of the five (5) most highly compensated Executives for the contractors preceding completed fiscal year.

Subcontract Award

Sub-awards means a monetary award made as a result of an award to a grant recipient or subcontractor. Subaward defined under this act, only is for first-tier awards. It does not include awards made by a first-tier subcontractor to a lower tier subcontractor.


Are you a Subcontractors that must report?

Yes, if

  • in the preceding fiscal year recieved ---
    • 80 percent or more of its annual gross revenues in Federal Awards and
    • $25M or more in annual gross revenues from Federal Awards


What Subcontractor Information must be reported?

  • Name of the Subcontractor,
  • Amount of the Award,
  • Information on the award, including transaction type, funding agency, North American Industry Classification Code (NAICS), or Catalog of Federal Domestic Assistance number (where applicable) program source, and an award title descriptive of the funding action.
  • Location of the entity receiving the award and primary location of performance under the award including, City, State, Congressional District, and County,


Non-Compliance

  • Contracting Officers may impose appropriate contractual remedies
  • Will become part of your past performance record (which may affect future awards)
  • If you improperly certify compliance with reporting requirements there may be False Claims Act Liability
  • CCR section pertaining to executive compensation warns that "Knowingly providing false or misleading information may result in criminal or civil penalties as per Title 18 Section 1001 of the US Criminal Code.
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