October 31 is the deadline to report to the Federal Government for Service Contracts and Subcontracting Goals., if applicable. This article focuses on Service Contract Reporting. For more information on reporting Subcontractor Goals, go to www.esrs.gov.
WHAT: For FY 2015, reporting is required according to the following thresholds (see FAR 4.1703).
• All cost-reimbursement, time-and-materials, and labor-hour service contracts and orders with an estimated total value above the simplified acquisition threshold (currently $150K).
• All fixed-price service contracts awarded or issued with an estimated total value of $1 million or greater.
Note – the rule applies to contracts awarded by executive agencies covered by the Federal Activities Inventory Reform (FAIR) Act (P.L. 105-270), except the Department of Defense.
What clause in my contract is applicable to this reporting requirement? Based on the type of contract awarded, either FAR 52.204-14 or 52.204-15 (within 52.212-5 for commercial contracts) would be applicable and addresses the requirements for Service Contract Reporting.
WHY: Service contract inventories are a management tool that are designed to help agencies better understand how contractors are being used to support the mission and whether contractors’ skills are being used appropriately. The agencies analyze the data to determine if the mix of Federal employees and contractors is effective or if rebalancing is needed. Information on the total amount invoiced and the direct labor hours expended, when combined with other market research information and, where available, benchmarking data, can help to support agency efforts to eliminate costly duplicative service contracts in favor of more affordable solutions by providing insight into the relative cost-effectiveness and efficiency of contracted work.
WHEN: In accordance with the new rule, contractors performing on covered contracts must report their information between October 1 and October 31.
HOW: The information is collected through the System for Award Management (SAM) and included in the agency service contract inventory.
What happens if a contractor fails to work with the agency to provide the required data in a timely manner? The contracting officer is expected to make the contractor’s failure to comply with the reporting requirements a part of the contractor’s performance information under FAR Subpart 42.15, and therefore, any failure to report or report timely will be reflected in the applicable CPARS assessment.
QUESTIONS: Contact your Contracting Officer.
*Much of this information has been excerpted directly from the FY 2015 Service Contract Reporting Fact Sheet.
This blog is for informational purposes only. None of the content is, or will be deemed to constitute legal opinions or legal advice.