Overview
This section defines key terms specifically used in the context of service contract reporting requirements under FAR Subpart 4.17, establishing the scope of applicable agencies and the boundaries of reportable subcontracts.
Key Rules
- FAIR Act Agencies: Refers to agencies mandated by the Federal Activities Inventory Reform (FAIR) Act to submit annual inventories of activities performed by government personnel.
- First-tier Subcontract Definition: Includes only those subcontracts awarded directly by the prime contractor for specific supplies or services required to perform the prime contract.
- Exclusions: Explicitly excludes general supplier agreements, long-term arrangements for materials that benefit multiple contracts, and costs typically categorized as general and administrative (G&A) or indirect costs.
Practical Implications
- Reporting Precision: Contractors must distinguish between direct project-related subcontractors and general vendors to ensure only relevant "first-tier" data is captured for service contract inventories.
- Compliance Scope: The definitions limit the administrative burden on contractors by excluding routine overhead and indirect supply chain costs from the specialized reporting requirements of this subpart.