Overview
This section prescribes the mandatory use of FAR clause 52.204-10, which requires contractors to report executive compensation and first-tier subcontract awards to ensure transparency in federal spending.
Key Rules
- Threshold: The contracting officer must include the clause in all solicitations and contracts valued at $40,000 or more.
- Mandatory Clause: The specific clause to be used is FAR 52.204-10, Reporting Executive Compensation and First-Tier Subcontract Awards.
- Exemptions: The clause is not required for contracts that are exempt from reporting in the Federal Procurement Data System (FPDS) under FAR Subpart 4.6.
Practical Implications
- Administrative Compliance: Prime contractors must maintain systems to track and report specific subcontract data and executive pay to the Federal Subaward Reporting System (FSRS).
- Transparency Obligations: Small and large businesses alike must be prepared for public disclosure of high-level financial information if they meet the reporting criteria defined in the clause.