This analysis covers FAR Subpart 5.7, which establishes specialized transparency requirements for contract actions funded by the American Recovery and Reinvestment Act of 2009 (ARRA).
Overview
FAR Subpart 5.7 prescribes unique posting and notification requirements for any federal solicitation or award funded in whole or in part by the Recovery Act. The primary objective of these regulations is to provide the general public with high levels of transparency regarding how stimulus funds are allocated and spent.
Key Rules
- Thresholds: Applies to all contract actions expected to exceed $25,000 (preaward) and specific postaward actions exceeding $500,000.
- Order Transparency: Unlike standard FAR procedures, notices of proposed contract actions are required for orders exceeding $25,000 issued under task or delivery order contracts (e.g., IDIQs, GWACs, and GSA Schedules).
- Identification Requirements: All notices must include the word "Recovery" as the first word in the title field and must have the "Recovery Act" radio button selected on SAM.gov.
- Plain Language: Descriptions of goods and services must be written in clear, concise language understandable by the general public, strictly avoiding technical jargon or internal government acronyms.
- Rationale for Non-Competitive/Non-Fixed-Price: Regardless of dollar value, if an action is not both fixed-price and competitively awarded, the Contracting Officer must publicize a rationale for the award method used.
- Modification Reporting: Modifications to contracts or orders must be publicized if they exceed $500,000 or if they apply to an original action that required a rationale (non-fixed-price/non-competitive).
Responsibilities
- Contracting Officers (COs):
- Ensuring the "Recovery" designation is correctly applied to all GPE (Governmentwide Point of Entry) notices.
- Drafting public-friendly procurement descriptions that omit proprietary or national security information.
- Posting "informational only" preaward notices for orders under existing contracts.
- Providing and posting the specific rationale when a contract action is not fixed-price or was not awarded via full and open competition.
- Program Managers/Requirements Owners:
- Providing the CO with clear, non-technical descriptions of the requirements to meet transparency standards.
- Identifying which funding streams are tied to the Recovery Act to ensure compliance with this subpart.
Practical Implications
This subpart represents a significant departure from "business as usual" by stripping away many common exemptions found in FAR Part 5. In a real-world scenario, a Contracting Officer cannot simply issue a task order under a GSA Schedule and remain silent; they must post an informational notice to SAM.gov so the public is aware of the spend.
Furthermore, the requirement to publish the rationale for non-competitive or non-fixed-price awards creates a higher level of accountability. Contracting offices must be prepared for increased public and media scrutiny, as these justifications are readily accessible to the general public. For contractors, this means that their involvement in stimulus-funded projects is highly visible, and the "Recovery" keyword makes these opportunities and awards easily searchable for oversight bodies.