Overview
This subpart implements the Federal Funding Accountability and Transparency Act (FFATA), establishing mandatory reporting requirements for subcontract awards and executive compensation to ensure public transparency in federal spending.
Key Rules
- Statutory Authority: Implements Section 2 of Pub. L. 109-282 (FFATA) and Section 6202 of Pub. L. 110-252.
- Subcontract Reporting: Contractors are required to report data regarding first-tier subcontract awards.
- Executive Compensation: Contractors must report the total compensation of the five most highly compensated executives for both the prime contractor and their subcontractors.
- Public Disclosure: Reported first-tier subcontract data is made available for public inspection via www.usaspending.gov.
Practical Implications
- Prime contractors must implement internal processes to collect and report sensitive financial and compensation data for themselves and their subcontractors.
- Transparency requirements mean that subcontracting activities and high-level corporate salaries are subject to public scrutiny, impacting how firms manage their administrative compliance and privacy concerns.