This analysis covers FAR Part 4 - Administrative and Information Matters, which serves as the "back office" framework for federal contracting, ensuring legal validity, transparency, and national security.
Overview
FAR Part 4 establishes the administrative requirements for executing, distributing, and reporting government contracts, as well as maintaining official contract files. It also integrates modern security protocols, including the safeguarding of classified information and prohibitions on specific high-risk technologies and entities (e.g., Kaspersky Lab, ByteDance, and certain telecommunications equipment).
Key Rules
- Signature Authority: Only warranted Contracting Officers (COs) can bind the Government. They must verify that contractor representatives also have the legal authority to sign.
- Contract Distribution: Signed contracts and modifications must be distributed to the contractor and the paying office within 10 working days of execution.
- Taxpayer Identification: COs must collect and provide the contractor’s Taxpayer Identification Number (TIN) to the paying office to ensure proper IRS reporting.
- FPDS Reporting: Most contract actions exceeding the micro-purchase threshold must be reported to the Federal Procurement Data System (FPDS) via a Contract Action Report (CAR) within three business days of award.
- Classified Information: For contracts requiring access to classified data, agencies must use the DD Form 254 (Contract Security Classification Specification) to provide security guidance to the contractor.
- Supply Chain Prohibitions: There are strict bans on procuring or using hardware, software, or services from Kaspersky Lab (Subpart 4.20), ByteDance/TikTok (Subpart 4.22), and certain Chinese telecommunications/video equipment (Subpart 4.21).
- SAM Registration: Contractors must generally be registered in the System for Award Management (SAM) prior to award to ensure data accuracy and eligibility.
Responsibilities
- Contracting Officers (COs):
- Ensuring the accuracy and "confirmation" of CAR data in FPDS before releasing the contract.
- Verifying contractor authority to bind the firm.
- Identifying the need for security clearances and classified information safeguards.
- Updating size status in FPDS if a contractor rerepresents their small business status.
- Contractors:
- Maintaining records for specified retention periods (usually 3–6 years depending on the record type).
- Reporting executive compensation and first-tier subcontract awards (Subpart 4.14).
- Safeguarding "covered contractor information systems" and removing prohibited applications (like TikTok) from devices used in contract performance.
- Senior Procurement Executives (SPE):
- Monitoring the agency’s process for timely and accurate FPDS reporting.
- Chief Acquisition Officer (CAO):
- Submitting an annual certification to the GSA regarding the completeness and accuracy of the agency’s contract data.
Practical Implications
- Audit Readiness: Subpart 4.7 and 4.8 dictate that "administrative matters" are not just paperwork; they are the basis for legal audits. Contractors must have robust document retention policies to match the specific timeframes (e.g., 4 years for acquisition records) to avoid non-compliance during a DCAA or GAO audit.
- Cyber-Hygiene as a Contract Requirement: The inclusion of Subparts 4.19 through 4.23 means that cybersecurity is now a standard administrative hurdle. A contractor cannot simply provide services; they must certify that their supply chain is free of prohibited technology.
- Payment Delays: Failure to comply with TIN reporting (4.203) or SAM registration (4.11) is a frequent cause of "administrative" payment holds. Contractors must ensure their CAGE codes and TINs match across all platforms to ensure seamless funds disbursement.
- Transparency and Public Data: Because of the FPDS reporting rules (4.6), almost all unclassified contract details (price, vendor, competition type) are public record. Competitors often use this data for market research and "capture" strategies.