Part 4 - Administrative and Information

Matters

4.000 Scope of part.

4.001 Definitions.

Subpart 4.1 - Contract Execution

4.101 Contracting officer’s signature.

4.102 Contractor’s signature.

4.103 Contract clause.

Subpart 4.2 - Contract Distribution

4.201 Procedures.

4.202 Agency distribution requirements.

4.203 Taxpayer identification information.

Subpart 4.3 - Paper Documents

4.300 Scope of subpart.

4.301 Definition.

4.302 Policy.

4.303 Contract clause.

Subpart 4.4 - Safeguarding Classified Information Within Industry

4.401 [Reserved]

4.402 General.

4.403 Responsibilities of contracting officers.

4.404 Contract clause.

Subpart 4.5 - Electronic Commerce in Contracting

4.500 Scope of subpart.

4.501 [Reserved]

4.502 Policy.

Subpart 4.6 - Contract Reporting
4.600 Scope of subpart.

4.601 Definitions.

4.602 General.

4.603 Policy.

4.604 Responsibilities.

4.605 Procedures.

4.606 Reporting Data.

4.607 Solicitation provisions and contract clause.

Subpart 4.7 - Contractor Records Retention

4.700 Scope of subpart.

4.701 Purpose.

4.702 Applicability.

4.703 Policy.

4.704 Calculation of retention periods.

4.705 Specific retention periods.

4.705-1 Financial and cost accounting records.

4.705-2 Pay administration records.

4.705-3 Acquisition and supply records.

Subpart 4.8 - Government Contract Files

4.800 Scope of subpart.

4.801 General.

4.802 Contract files.

4.803 Contents of contract files.

4.804 Closeout of contract files.

4.804-1 Closeout by the office administering the contract.

4.804-2 Closeout of the contracting office files if another office administers the contract.

4.804-3 Closeout of paying office contract files.

4.804-4 Physically completed contracts.
4.804-5 Procedures for closing out contract files.

4.805 Storage, handling, and contract files.

Subpart 4.9 - Taxpayer Identification Number Information

4.900 Scope of subpart.

4.901 Definition.

4.902 General.

4.903 Reporting contract information to the IRS.

4.904 Reporting payment information to the IRS.

4.905 Solicitation provision.

Subpart 4.10 - Uniform Use of Line Items

4.1000 Scope.

4.1001 Policy.

4.1002 Applicability.

4.1003 Establishing line items.

4.1004 Establishing subline items.

4.1005 Data elements for line items and subline items.

4.1005-1 Required data elements.

4.1005-2 Exceptions.

4.1006 Modifications.

4.1007 Solicitation alternative line item proposal.

4.1008 Solicitation provision.

Subpart 4.11 - System for Award Management

4.1100 Scope.

4.1101 Definition.

4.1102 Policy.

4.1103 Procedures.

4.1104 Disaster Response Registry.

4.1105 Solicitation provision and contract clauses.
Subpart 4.12 - Representations and Certifications

4.1200 Scope.

4.1201 Policy.

4.1202 Solicitation provision and contract clause.

Subpart 4.13 - Personal Identity Verification

4.1300 Scope of subpart.

4.1301 Policy.

4.1302 Acquisition of approved products and services for personal identity verification.

4.1303 Contract clause.

Subpart 4.14 - Reporting Executive Compensation and First-Tier Subcontract Awards

4.1400 Scope of subpart.

4.1401 Applicability.

4.1402 Procedures.

4.1403 Contract clause.

Subpart 4.15 - [Reserved]

4.1500 [Reserved]

4.1501 [Reserved]

4.1502 [Reserved]

Subpart 4.16 - Unique Procurement Instrument Identifiers

4.1600 Scope of subpart.

4.1601 Policy.

4.1602 Identifying the PIID and supplementary PIID.

4.1603 Procedures.

Subpart 4.17 - Service Contracts Inventory

4.1700 Scope of subpart.

4.1701 Definitions.

4.1702 Applicability.

4.1703 Reporting requirements.
4.1704 Contracting officer responsibilities.

4.1705 Contract clauses.

Subpart 4.18 - Commercial and Government Entity Code

4.1800 Scope of subpart.

4.1801 Definitions.

4.1802 Policy.

4.1803 Verifying CAGE codes prior to award.

4.1804 Solicitation provisions and contract clause.

Subpart 4.19 - Basic Safeguarding of Covered Contractor Information Systems

4.1901 Definitions.

4.1902 Applicability.

4.1903 Contract clause.

Subpart 4.20 Prohibition on Contracting for Hardware, Software, and Services Developed or

Provided by Kaspersky Lab

4.2001 Definitions.

4.2002 Prohibition.

4.2003 Notification.

4.2004 Contract clause.

Subpart 4.21 Prohibition on Contracting for Certain Telecommunications and Video Surveillance

Services or Equipment

4.2100 Scope of part.

4.2101 Definitions.

4.2102 Prohibition.

4.2103 Procedures.

4.2104 Waivers.

4.2105 Solicitation provisions and contract clause.

Subpart 4.22 Prohibition on a ByteDance Covered Application.

4.2201 Definitions.

4.2202 Prohibition.
4.2203 Contract clause.

Subpart 4.23 Federal Acquisition Security Council.

4.2300 Scope of subpart.

4.2301 Definitions.

4.2302 Sharing supply chain risk information.

4.2303 FASCSA orders.

4.2304 Procedures.

4.2305 Waivers.

4.2306 Solicitation provision and contract clauses.

Parent topic: Federal Acquisition Regulation

4.000 Scope of part.

This part prescribes policies and procedures relating to the administrative aspects of contract

execution, contractor-submitted paper documents, distribution, reporting, retention, and files.

4.001 Definitions.

As used in this partProcurement Instrument Identifier (PIID) means the Government-unique identifier for each

solicitation, contract, agreement, or order. For example, an agency may use as its PIID for

procurement actions, such as delivery and task orders or basic ordering agreements, the order or

agreement number in conjunction with the contract number (see 4.1602).

Supplementary procurement instrument identifier means the non-unique identifier for a

procurement action that is used in conjunction with the Government-unique identifier. For example,

an agency may use as its PIID for an amended solicitation, the Government-unique identifier for a

solicitation number (e.g., N0002309R0009) in conjunction with a non-unique amendment number

(e.g., 0001). The non-unique amendment number represents the supplementary PIID.

Subpart 4.1 - Contract Execution

4.101 Contracting officer’s signature.

Only contracting officers shall sign contracts on behalf of the United States. The contracting

officer’s name and official title shall be typed, stamped, or printed on the contract. The contracting

officer normally signs the contract after it has been signed by the contractor. The contracting officer
shall ensure that the signer(s) have authority to bind the contractor (see specific requirements in

4.102 of this subpart).

4.102 Contractor’s signature.

(a) Individuals. A contract with an individual shall be signed by that individual. A contract with an

individual doing business as a firm shall be signed by that individual, and the signature shall be

followed by the individual’s typed, stamped, or printed name and the words ", an individual doing

business as _________" [insert name of firm].

(b) Partnerships. A contract with a partnership shall be signed in the partnership name. Before

signing for the Government, the contracting officer shall obtain a list of all partners and ensure that

the individual(s) signing for the partnership have authority to bind the partnership.

(c) Corporations. A contract with a corporation shall be signed in the corporate name, followed by

the word "by" and the signature and title of the person authorized to sign. The contracting officer

shall ensure that the person signing for the corporation has authority to bind the corporation.

(d) Joint venturers. A contract with joint venturers may involve any combination of individuals,

partnerships, or corporations. The contract shall be signed by each participant in the joint venture in

the manner prescribed in paragraphs (a) through (c) of this section for each type of participant.

When a corporation is participating, the contracting officer shall verify that the corporation is

authorized to participate in the joint venture.

(e) Agents. When an agent is to sign the contract, other than as stated in paragraphs (a) through (d)

of this section, the agent’s authorization to bind the principal must be established by evidence

satisfactory to the contracting officer.

4.103 Contract clause.

The contracting officer shall insert the clause at 52.204-1 Approval of Contract, in solicitations and

contracts if required by agency procedures.

Subpart 4.2 - Contract Distribution

4.201 Procedures.

Contracting officers shall distribute copies of contracts or modifications within 10 working days

after execution by all parties. As a minimum, the contracting officer shall-

(a) Distribute simultaneously one signed copy or reproduction of the signed contract to the

contractor and the paying office;

(b) When a contract is assigned to another office for contract administration (see subpart 42.2),

provide to that office-

(1) One copy or reproduction of the signed contract and of each modification; and
(2) A copy of the contract distribution list, showing those offices that should receive copies of

modifications, and any changes to the list as they occur;

(c) Distribute one copy to each accounting and finance office (funding office) whose funds are cited

in the contract;

(d) When the contract is not assigned for administration but contains a Cost Accounting Standards

clause, provide one copy of the contract to the cognizant administrative contracting officer and mark

the copy "For Cost Accounting Standards Administration Only" (see 30.601(b));

(e) Provide one copy of each contract or modification that requires audit service to the appropriate

field audit office listed in the "Directory of Federal Contract Audit Offices" (see 42.103); and

(f) Provide copies of contracts and modifications to those organizations required to perform contract

administration support functions (e.g., when manufacturing is performed at multiple sites, the

contract administration office cognizant of each location).

4.202 Agency distribution requirements.

Agencies shall limit additional distribution requirements to the minimum necessary for proper

performance of essential functions. When contracts are assigned for administration to a contract

administration office located in an agency different from that of the contracting office (see part 42),

the two agencies shall agree on any necessary distribution in addition to that prescribed in 4.201.

4.203 Taxpayer identification information.

(a) If the contractor has furnished a Taxpayer Identification Number (TIN) when completing the

solicitation provision at 52.204-3, Taxpayer Identification, or paragraph (l) of the solicitation

provision at 52.212-3, Offeror Representations and Certifications-Commercial Products and

Commercial Services, the contracting officer shall, unless otherwise provided in agency procedures,

attach a copy of the completed solicitation provision as the last page of the copy of the contract sent

to the payment office.

(b) If the TIN or type of organization is derived from a source other than the provision at 52.204-3 or

52.212-3(l), the contracting officer shall annotate the last page of the contract or order forwarded to

the payment office to state the contractor’s TIN and type of organization, unless this information is

otherwise provided to the payment office in accordance with agency procedures.

(c) If the contractor provides its TIN or type of organization to the contracting officer after award,

the contracting officer shall forward the information to the payment office within 7 days of its

receipt.

(d) Federal Supply Schedule contracts. Each contracting officer that places an order under a Federal

Supply Schedule contract (see subpart 8.4) shall provide the TIN and type of organization

information to the payment office in accordance with paragraph (b) of this section.

(e) Basic ordering agreements and indefinite-delivery contracts (other than Federal Supply Schedule

contracts).
(1) Each contracting officer that issues a basic ordering agreement or indefinite-delivery contract

(other than a Federal Supply Schedule contract) shall provide to contracting officers placing orders

under the agreement or contract (if the contractor is not required to provide this information to the

System for Award Management)-

(i) A copy of the agreement or contract with a copy of the completed solicitation provision at

52.204-3 or 52.212-3(l) as the last page of the agreement or contract; or

(ii) The contractor’s TIN and type of organization information.

(2) Each contracting officer that places an order under a basic ordering agreement or indefinitedelivery contract (other than a Federal Supply Schedule contract) shall provide the TIN and type of

organization information to the payment office in accordance with paragraph (a) or (b) of this

section.

Subpart 4.3 - Paper Documents

4.300 Scope of subpart.

This subpart provides policies and procedures on contractor-submitted paper documents.

4.301 Definition.

Printed or copied double-sided, as used in this subpart, means printing or reproducing a document

so that information is on both sides of a sheet of paper.

4.302 Policy.

(a) Section 3(a) of E.O. 13423, Strengthening Federal Environmental, Energy, and Transportation

Management, directs agencies to implement waste prevention. In addition, section 2(e) of E.O.

13514, Federal Leadership in Environmental, Energy, and Economic Performance, directs agencies

to eliminate waste. Electronic commerce methods (see 4.502) and double-sided printing and copying

are best practices for waste prevention.

(b) When electronic commerce methods (see 4.502) are not used, agencies shall require contractors

to submit paper documents to the Government relating to an acquisition printed or copied doublesided on at least 30 percent postconsumer fiber paper whenever practicable. If the contractor

cannot print or copy double-sided, it shall print or copy single-sided on at least 30 percent

postconsumer fiber paper.

4.303 Contract clause.

Insert the clause at 52.204-4, Printed or Copied Double-Sided on Recycled Paper, in solicitations and

contracts that exceed the simplified acquisition threshold.
Subpart 4.4 - Safeguarding Classified Information Within

Industry

4.401 [Reserved]

4.402 General.

(a) Executive Order12829, January 6, 1993 (58 FR3479, January 8, 1993), entitled "National

Industrial Security Program" (NISP), establishes a program to safeguard Federal Government

classified information that is released to contractors, licensees, and grantees of the United States

Government. Executive Order 12829 amends Executive Order 10865, February 20, 1960 (25

FR1583, February 25, 1960), entitled "Safeguarding Classified Information Within Industry," as

amended by Executive Order 10909, January 17, 1961 (26 FR508, January 20, 1961).

(b) The National Industrial Security Program Operating Manual (NISPOM) incorporates the

requirements of these Executive orders. The Secretary of Defense, in consultation with all affected

agencies and with the concurrence of the Secretary of Energy, the Chairman of the Nuclear

Regulatory Commission, the Director of National Intelligence, and the Secretary of Homeland

Security, is responsible for issuance and maintenance of this Manual. The following publications

implement the program:

(1) National Industrial Security Program Operating Manual (NISPOM) (32 CFR part 117).

(2) DoD Manual 5220.22, Volume 2, National Industrial Security Program: Industrial Security

Procedures for Government Activities.

(c) Procedures for the protection of information relating to foreign classified contracts awarded to

U.S. industry, and instructions for the protection of U.S. information relating to classified contracts

awarded to foreign firms, are prescribed in 32 CFR 117.19.

(d) Nondefense agencies that have industrial security services agreements with DoD, and DoD

components, shall use the DD Form 254, Contract Security Classification Specification, to provide

security classification guidance to U.S. contractors, and subcontractors as applicable, requiring

access to information classified as "Confidential", "Secret", or "Top Secret".

(1) Provided that the data submittal is unclassified, the DD Form 254 shall be completed

electronically in the NISP Contract Classification System (NCCS), which is accessible at

https://www.dcsa.mil/is/nccs/ . Nondefense agencies with an existing DD Form 254 information

system may use that system.

(2)

(i) A contractor, or subcontractor (if applicable), requiring access to classified information under a

contract shall be identified with a Commercial and Government Entity (CAGE) code on the DD Form

254 (see subpart 4.18 for information on obtaining and validating CAGE codes).

(ii) Each location of contractor or subcontractor performance listed on the DD Form 254 is required

to reflect a corresponding unique CAGE code for each listed location unless the work is being

performed at a Government facility, in which case the agency location code shall be used. Each
subcontractor location requiring access to classified information must be listed on the DD Form 254.

(iii) Contractor and subcontractor performance locations listed on the DD Form 254 are not required

to be separately registered in the System for Award Management (SAM) solely for the purposes of a

DD Form 254 (see subpart 4.11 for information on registering in SAM).

(e) Part 27, Patents, Data, and Copyrights, contains policy and procedures for safeguarding

classified information in patent applications and patents.

4.403 Responsibilities of contracting officers.

(a) Presolicitation phase. Contracting officers shall review all proposed solicitations to determine

whether access to classified information may be required by offerors, or by a contractor during

contract performance.

(1) If access to classified information of another agency may be required, the contracting officer

shall-

(i) Determine if the agency is covered by the NISP; and

(ii) Follow that agency’s procedures for determining the security clearances of firms to be solicited.

(2) If the classified information required is from the contracting officer’s agency, the contracting

officer shall follow agency procedures.

(b) Solicitation phase. Contracting officers shall-

(1) Ensure that the classified acquisition is conducted as required by the NISP or agency

procedures, as appropriate; and

(2) Include-

(i) An appropriate Security Requirements clause in the solicitation (see 4.404); and

(ii) As appropriate, in solicitations and contracts when the contract may require access to classified

information, a requirement for security safeguards in addition to those provided in the clause

(52.204-2, Security Requirements).

(c) Award phase. Contracting officers shall inform contractors and subcontractors of the security

classifications and requirements assigned to the various documents, materials, tasks, subcontracts,

and components of the classified contract as identified in the requirement documentation as follows:

(1) Nondefense agencies that have industrial security services agreements with DoD, and DoD

components, shall use the Contract Security Classification Specification, DD Form 254. The

contracting officer, or authorized agency representative, is the approving official for the DD Form

254 associated with the prime contract and shall ensure the DD Form 254 is properly prepared,

distributed by and coordinated with requirements and security personnel in accordance with agency

procedures, see 4.402(d)(1).

(2) Contracting officers in agencies not covered by the NISP shall follow agency procedures.
4.404 Contract clause.

(a) The contracting officer shall insert the clause at 52.204-2, Security Requirements, in solicitations

and contracts when the contract may require access to classified information, unless the conditions

specified in paragraph (d) of this section apply.

(b) If a cost contract (see 16.302) for research and development with an educational institution is

contemplated, the contracting officer shall use the clause with its Alternate I.

(c) If a construction or architect-engineer contract where employee identification is required for

security reasons is contemplated, the contracting officer shall use the clause with its Alternate II.

(d) If the contracting agency is not covered by the NISP and has prescribed a clause and alternates

that are substantially the same as those at 52.204-2, the contracting officer shall use the agencyprescribed clause as required by agency procedures.

Subpart 4.5 - Electronic Commerce in Contracting

4.500 Scope of subpart.

This subpart provides policy and procedures for the establishment and use of electronic commerce

in Federal acquisition as required by 41 U.S.C. 2301.

4.501 [Reserved]

4.502 Policy.

(a) The Federal Government shall use electronic commerce whenever practicable or cost-effective.

The use of terms commonly associated with paper transactions (e.g.,"copy," "document," "page,"

"printed," "sealed envelope," and "stamped") shall not be interpreted to restrict the use of electronic

commerce. Contracting officers may supplement electronic transactions by using other media to

meet the requirements of any contract action governed by the FAR (e.g., transmit hard copy of

drawings).

(b) Agencies may exercise broad discretion in selecting the hardware and software that will be used

in conducting electronic commerce. However, as required by 41 U.S.C. 2301, the head of each

agency, after consulting with the Administrator of OFPP, shall ensure that systems, technologies,

procedures, and processes used by the agency to conduct electronic commerce-

(1) Are implemented uniformly throughout the agency, to the maximum extent practicable;

(2) Are implemented only after considering the full or partial use of existing infrastructures;

(3) Facilitate access to Government acquisition opportunities by small business concerns, small

disadvantaged business concerns, women-owned, veteran-owned, HUBZone, and service-disabled

veteran-owned small business concerns;
(4) Include a single means of providing widespread public notice of acquisition opportunities

through the Governmentwide point of entry and a means of responding to notices or solicitations

electronically; and

(5) Comply with nationally and internationally recognized standards that broaden interoperability

and ease the electronic interchange of information, such as standards established by the National

Institute of Standards and Technology.

(c) Before using electronic commerce, the agency head shall ensure that the agency systems are

capable of ensuring authentication and confidentiality commensurate with the risk and magnitude of

the harm from loss, misuse, or unauthorized access to or modification of the information.

(d) Agencies may accept electronic signatures and records in connection with Government contracts.

Subpart 4.6 - Contract Reporting

4.600 Scope of subpart.

This subpart prescribes uniform reporting requirements for the Federal Procurement Data System

(FPDS).

4.601 Definitions.

As used in this subpart—

Contract action means any oral or written action that results in the purchase, rent, or lease of

supplies or equipment, services, or construction using appropriated dollars over the micro-purchase

threshold, or modifications to these actions regardless of dollar value. Contract action does not

include grants, cooperative agreements, other transactions, real property leases, requisitions from

Federal stock, training authorizations, or other non-FAR based transactions.

Contract action report (CAR) means contract action data required to be entered into the Federal

Procurement Data System (FPDS).

Definitive contract means any contract that must be reported to FPDS other than an indefinite

delivery vehicle. This definition is only for FPDS, and is not intended to apply to part 16.

Entitlement program means a Federal program that guarantees a certain level of benefits to persons

or other entities who meet requirements set by law, such as Social Security, farm price supports, or

unemployment benefits.

Generic entity identifier means a number or other identifier assigned to a category of vendors and

not specific to any individual or entity.

Indefinite delivery vehicle (IDV) means an indefinite delivery contract or agreement that has one or

more of the following clauses:

(1) 52.216-18, Ordering.
(2) 52.216-19, Order Limitations.

(3) 52.216-20, Definite Quantity.

(4) 52.216-21, Requirements.

(5) 52.216-22, Indefinite Quantity.

(6) Any other clause allowing ordering.

4.602 General.

(a) The FPDS provides a comprehensive web-based tool for agencies to report contract actions. The

resulting data provides-

(1) A basis for recurring and special reports to the President, the Congress, the Government

Accountability Office, Federal executive agencies, and the general public;

(2) A means of measuring and assessing the effect of Federal contracting on the Nation's economy

and the extent to which small, veteran-owned small, service-disabled veteran-owned small,

HUBZone small, small disadvantaged, women-owned small business concerns, and AbilityOne

nonprofit agencies operating under 41 U.S.C. chapter 85, Committee for Purchase from People Who

Are Blind or Severely Disabled, are sharing in Federal contracts;

(3) A means of measuring and assessing the effect of Federal contracting for promoting sustainable

technologies, materials, products, and high-performance sustainable buildings. This is accomplished

by collecting and reporting agency data on sustainable acquisition, including types of products

purchased, the purchase costs, and the exceptions used for other than sustainable acquisition; and

(4) A means of measuring and assessing the effect of other policy and management initiatives (e.g.,

performance based acquisitions and competition).

(b) FPDS does not provide reports for certain acquisition information used in the award of a contract

action (e.g., subcontracting data, funding data, or accounting data).

(c) The FPDS Web site, https://www.fpds.gov, provides instructions for submitting data. It also

provides-

(1) A complete list of departments, agencies, and other entities that submit data to the FPDS;

(2) Technical and end-user guidance;

(3) A computer-based tutorial; and

(4) Information concerning reports not generated in FPDS.

4.603 Policy.

(a) In accordance with the Federal Funding Accountability and Transparency Act of 2006 (Pub. L.

109-282), all unclassified Federal award data must be publicly accessible.
(b) Executive agencies shall use FPDS to maintain publicly available information about all

unclassified contract actions exceeding the micro-purchase threshold, and any modifications to those

actions that change previously reported contract action report data, regardless of dollar value.

(c) Agencies awarding assisted acquisitions or direct acquisitions must report these actions and

identify the Program/Funding Agency and Office Codes from the applicable agency codes maintained

by each agency at FPDS. These codes represent the agency and office that has provided the

predominant amount of funding for the contract action. For assisted acquisitions, the requesting

agency will receive socioeconomic credit for meeting agency small business goals, where applicable.

Requesting agencies shall provide the appropriate agency/bureau component code as part of the

written interagency agreement between the requesting and servicing agencies (see 17.502-1(a)(1)).

(d) Agencies awarding contract actions with a mix of appropriated and non-appropriated funding

shall only report the full appropriated portion of the contract action in FPDS.

4.604 Responsibilities.

(a) The Senior Procurement Executive in coordination with the head of the contracting activity is

responsible for developing and monitoring a process to ensure timely and accurate reporting of

contractual actions to FPDS.

(b)

(1) The responsibility for the completion and accuracy of the individual contract action report (CAR)

resides with the contracting officer who awarded the contract action. CARs in a draft or error status

in FPDS are not considered complete.

(2) The CAR must be confirmed for accuracy by the contracting officer prior to release of the

contract award. The CAR must then be completed in FPDS within three business days after contract

award.

(3) For any action awarded in accordance with FAR 6.302-2 or pursuant to any of the authorities

listed at subpart 18.2, the CAR must be completed in FPDS within 30 days after contract award.

(4) When the contracting office receives written notification that a contractor has changed its size

status in accordance with the clause at 52.219-28, Post-Award Small Business Program

Rerepresentation, the contracting officer shall update the size status in FPDS within 30 days after

receipt of contractor’s notification of rerepresentation.

(5) If after award of a contract, the contracting officer receives written notification of SBA’s final

decision on a protest concerning a size determination, the contracting officer shall update FPDS to

reflect the final decision.

(c) The chief acquisition officer of each agency required to report its contract actions must submit to

the General Services Administration (GSA), in accordance with FPDS guidance, within 120 days

after the end of each fiscal year, an annual certification of whether, and to what degree, agency CAR

data for the preceding fiscal year is complete and accurate.
4.605 Procedures.

(a) Procurement Instrument Identifier (PIID). Agencies shall have in place a process that ensures

that each PIID reported to FPDS is unique Governmentwide, for all solicitations, contracts, blanket

purchase agreements, basic agreements, basic ordering agreements, or orders in accordance with

4.1601 to 4.1603, and will remain so for at least 20 years from the date of contract award. Other

pertinent PIID instructions for FPDS reporting can be found at https://www.fpds.gov.

(b) Unique entity identifier. The contracting officer shall identify and report a unique entity identifier

for the successful offeror on a contract action. The unique entity identifier shall correspond to the

successful offeror's name and address as stated in the offer and resultant contract, and as registered

in the System for Award Management in accordance with the provision at 52.204-7, System for

Award Management. The contracting officer shall ask the offeror to provide its unique entity

identifier by using either the provision at 52.204-6, Unique Entity Identifier, the provision at

52.204-7, System for Award Management, or the provision at 52.212-1, Instructions to OfferorsCommercial Products and Commercial Services. (For a discussion of the Commercial and

Government Entity (CAGE) Code, which is a different identifier, see subpart 4.18.)

(c) Generic entity identifier.

(1) The use of a generic entity identifier should be limited, and only used in the situations described

in paragraph (c)(2) of this section. Use of a generic entity identifier does not supersede the

requirements of provisions 52.204-6, Unique Entity Identifier or 52.204-7 System for Award

Management (if present in the solicitation) for the contractor to have a unique entity identifier

assigned.

(2) Authorized generic entity identifiers, maintained by the Integrated Award Environment (IAE)

program office (http://www.gsa.gov/portal/content/105036), may be used to report contracts in lieu

of the contractor's actual unique entity identifier only for—

(i) Contract actions valued at or below $30,000 that are awarded to a contractor that is-

(A) A student;

(B) A dependent of either a veteran, foreign service officer, or military member assigned outside the

United States and its outlying areas (as defined in 2.101); or

(C) Located outside the United States and its outlying areas for work to be performed outside the

United States and its outlying areas and the contractor does not otherwise have a unique entity

identifier;

(ii) Contracts valued above $30,000 awarded to individuals located outside the United States and its

outlying areas for work to be performed outside the United States and its outlying areas; or

(iii) Contracts when specific public identification of the contracted party could endanger the mission,

contractor, or recipients of the acquired goods or services. The contracting officer must include a

written determination in the contract file of a decision applicable to authority under this paragraph

(c)(2)(iii).

(d) American Recovery and Reinvestment Act actions. The contracting officer, when entering data in

FPDS, shall use the instructions at https://www.fpds.gov to identify any action funded in whole or in
part by the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5).

(e) Office codes. Agencies shall by March 31, 2016—

(1) Use the Activity Address Code (AAC), as defined in 2.101, assigned to the issuing contracting

office as the contracting office code, and

(2) Use the AAC assigned to the program/funding office providing the predominance of funding for

the contract action as the program/funding office code.

4.606 Reporting Data.

(a) Actions required to be reported to FPDS.

(1) As a minimum, agencies must report the following contract actions over the micro-purchase

threshold, regardless of solicitation process used, and agencies must report any modification to

these contract actions that change previously reported contract action data, regardless of dollar

value:

(i) Definitive contracts, including purchase orders and imprest fund buys over the micro-purchase

threshold awarded by a contracting officer.

(ii) Indefinite delivery vehicle (identified as an "IDV" in FPDS). Examples of IDVs include the

following:

(A) Task and Delivery Order Contracts (see subpart 16.5), including–

(1) Government-wide acquisition contracts.

(2) Multi-agency contracts.

(B) GSA Federal supply schedules.

(C) Blanket Purchase Agreements (see 13.303).

(D) Basic Ordering Agreements (see 16.703).

(E) Any other agreement or contract against which individual orders or purchases may be placed.

(iii) All calls and orders awarded under the indefinite delivery vehicles identified in paragraph

(a)(1)(ii) of this section.

(2) The GSA Office of Charge Card Management will provide the Government purchase card data, at

a minimum annually, and GSA will incorporate that data into FPDS for reports.

(3) Agencies may use the FPDS Express Reporting capability for consolidated multiple action reports

for a vendor when it would be overly burdensome to report each action individually. When used,

Express Reporting should be done at least monthly.

(b) Reporting other actions. Agencies may submit actions other than those listed at paragraph (a)(1)

of this section only if they are able to be segregated from FAR-based actions and this is approved in
writing by the FPDS Program Office. Prior to the commencement of reporting, agencies must

contact the FPDS Program Office if they desire to submit any of the following types of activity:

(1) Transactions at or below the micro-purchase threshold, except as provided in paragraph (a)(2) of

this section.

(2) Any non-appropriated fund (NAF) or NAF portion of a contract action using a mix of appropriated

and non-appropriated funding.

(3) Lease and supplemental lease agreements for real property.

(4) Grants and entitlement actions.

(c) Actions not reported. The following types of contract actions are not to be reported to FPDS:

(1) Imprest fund transactions below the micro-purchase threshold, including those made via the

Government purchase card (unless specific agency procedures prescribe reporting these actions).

(2) Orders from GSA stock and the GSA Global Supply Program.

(3) Purchases made at GSA or AbilityOne service stores, as these items stocked for resale have

already been reported by GSA.

(4) Purchases made using non-appropriated fund activity cards, chaplain fund cards, individual

Government personnel training orders, and Defense Printing orders.

(5) Actions that, pursuant to other authority, will not be entered in FPDS (e.g., reporting of the

information would compromise national security).

(6) Contract actions in which the required data would constitute classified information.

(7) Resale activity (i.e., commissary or exchange activity).

(8) Revenue generating arrangements (i.e., concessions).

(9) Training expenditures not issued as orders or contracts.

(10) Interagency agreements other than inter-agency acquisitions required to be reported at

4.606(a)(1).

(11) Letters of obligation used in the A-76 process.

(d) Agencies not subject to the FAR. Agencies not subject to the FAR may be required by other

authority (e.g., statute, OMB, or internal agency policy) to report certain information to FPDS. Those

agencies not subject to the FAR must first receive approval from the FPDS Program Office prior to

reporting to FPDS.

4.607 Solicitation provisions and contract clause.

(a) Insert the provision at 52.204-5, Women-Owned Business (Other Than Small Business), in all

solicitations that-
(1) Are not set aside for small business concerns;

(2) Exceed the simplified acquisition threshold; and

(3) Are for contracts that will be performed in the United States or its outlying areas.

(b) Insert the provision at 52.204-6, Unique Entity Identifier, in solicitations that do not contain the

provision at 52.204-7, System for Award Management, or meet a condition at 4.605(c)(2).

(c) Insert the clause at 52.204-12, Unique Entity Identifier Maintenance, in solicitations and

resulting contracts that contain the provision at 52.204-6, Unique Entity Identifier.

Subpart 4.7 - Contractor Records Retention

4.700 Scope of subpart.

This subpart provides policies and procedures for retention of records by contractors to meet the

records review requirements of the Government. In this subpart, the terms "contracts" and

"contractors" include "subcontracts" and "subcontractors."

4.701 Purpose.

The purpose of this subpart is to generally describe records retention requirements and to allow

reductions in the retention period for specific classes of records under prescribed circumstances.

4.702 Applicability.

(a) This subpart applies to records generated under contracts that contain one of the following

clauses:

(1) Audit and Records-Sealed Bidding (52.214-26).

(2) Audit and Records-Negotiation (52.215-2).

(b) This subpart is not mandatory on Department of Energy contracts for which the Comptroller

General allows alternative records retention periods. Apart from this exception, this subpart applies

to record retention periods under contracts that are subject to 10 U.S.C. chapter 137 legacy

provisions ( 10 U.S.C. 3064) and 10 U.S.C. 3016 and chapter 203, or 40 U.S.C. 101, et seq.

4.703 Policy.

(a) Except as stated in 4.703(b), contractors shall make available records, which includes books,

documents, accounting procedures and practices, and other data, regardless of type and regardless

of whether such items are in written form, in the form of computer data, or in any other form, and

other supporting evidence to satisfy contract negotiation, administration, and audit requirements of

the contracting agencies and the Comptroller General for-
(1) 3 years after final payment; or

(2) For certain records the period specified in 4.705 through 4.705-3, whichever of these periods

expires first.

(b) Contractors shall make available the foregoing records and supporting evidence for a longer

period of time than is required in 4.703(a) if-

(1) A retention period longer than that cited in 4.703(a) is specified in any contract clause; or

(2) The contractor, for its own purposes, retains the foregoing records and supporting evidence for a

longer period. Under this circumstance, the retention period shall be the period of the contractor’s

retention or 3 years after final payment, whichever period expires first.

(3) The contractor does not meet the original due date for submission of final indirect cost rate

proposals specified in paragraph (d)(2) of the clause at 52.216-7, Allowable Cost and Payment.

Under these circumstances, the retention periods in 4.705 shall be automatically extended one day

for each day the proposal is not submitted after the original due date.

(c) Nothing in this section shall be construed to preclude a contractor from duplicating or storing

original records in electronic form unless they contain significant information not shown on the

record copy. Original records need not be maintained or produced in an audit if the contractor or

subcontractor provides photographic or electronic images of the original records and meets the

following requirements:

(1) The contractor or subcontractor has established procedures to ensure that the imaging process

preserves accurate images of the original records, including signatures and other written or graphic

images, and that the imaging process is reliable and secure so as to maintain the integrity of the

records.

(2) The contractor or subcontractor maintains an effective indexing system to permit timely and

convenient access to the imaged records.

(3) The contractor or subcontractor retains the original records for a minimum of one year after

imaging to permit periodic validation of the imaging systems.

(d) If the information described in paragraph (a) of this section is maintained on a computer,

contractors shall retain the computer data on a reliable medium for the time periods prescribed.

Contractors may transfer computer data in machine readable form from one reliable computer

medium to another. Contractors’ computer data retention and transfer procedures shall maintain the

integrity, reliability, and security of the original computer data. Contractors shall also retain an

audit trail describing the data transfer. For the record retention time periods prescribed, contractors

shall not destroy, discard, delete, or write over such computer data.

4.704 Calculation of retention periods.

(a) The retention periods in 4.705 are calculated from the end of the contractor’s fiscal year in which

an entry is made charging or allocating a cost to a Government contract or subcontract. If a specific

record contains a series of entries, the retention period is calculated from the end of the contractor’s

fiscal year in which the final entry is made. The contractor should cut off the records in annual

blocks and retain them for block disposal under the prescribed retention periods.
(b) When records generated during a prior contract are relied upon by a contractor for certified cost

or pricing data in negotiating a succeeding contract, the prescribed periods shall run from the date

of the succeeding contract.

(c) If two or more of the record categories described in 4.705 are interfiled and screening for

disposal is not practical, the contractor shall retain the entire record series for the longest period

prescribed for any category of records.

4.705 Specific retention periods.

The contractor shall retain the records identified in 4.705-1 through 4.705-3 for the periods

designated, provided retention is required under 4.702. Records are identified in this subpart in

terms of their purpose or use and not by specific name or form number. Although the descriptive

identifications may not conform to normal contractor usage or filing practices, these identifications

apply to all contractor records that come within the description.

4.705-1 Financial and cost accounting records.

(a) Accounts receivable invoices, adjustments to the accounts, invoice registers, carrier freight bills,

shipping orders, and other documents which detail the material or services billed on the related

invoices: Retain 4 years.

(b) Material, work order, or service order files, consisting of purchase requisitions or purchase

orders for material or services, or orders for transfer of material or supplies: Retain 4 years.

(c) Cash advance recapitulations, prepared as posting entries to accounts receivable ledgers for

amounts of expense vouchers prepared for employees’ travel and related expenses: Retain 4 years.

(d) Paid, canceled, and voided checks, other than those issued for the payment of salary and wages:

Retain 4 years.

(e) Accounts payable records to support disbursements of funds for materials, equipment, supplies,

and services, containing originals or copies of the following and related documents: remittance

advices and statements, vendors’ invoices, invoice audits and distribution slips, receiving and

inspection reports or comparable certifications of receipt and inspection of material or services, and

debit and credit memoranda: Retain 4 years.

(f) Labor cost distribution cards or equivalent documents: Retain 2 years.

(g) Petty cash records showing description of expenditures, to whom paid, name of person

authorizing payment, and date, including copies of vouchers and other supporting documents:

Retain 2 years.

4.705-2 Pay administration records.

(a) Payroll sheets, registers, or their equivalent, of salaries and wages paid to individual employees

for each payroll period; change slips; and tax withholding statements: Retain 4 years.
(b) Clock cards or other time and attendance cards: Retain 2 years.

(c) Paid checks, receipts for wages paid in cash, or other evidence of payments for services rendered

by employees: Retain 2 years.

4.705-3 Acquisition and supply records.

(a) Store requisitions for materials, supplies, equipment, and services: Retain 2 years.

(b) Work orders for maintenance and other services: Retain 4 years.

(c) Equipment records, consisting of equipment usage and status reports and equipment repair

orders: Retain 4 years.

(d) Expendable property records, reflecting accountability for the receipt and use of material in the

performance of a contract: Retain 4 years.

(e) Receiving and inspection report records, consisting of reports reflecting receipt and inspection of

supplies, equipment, and materials: Retain 4 years.

(f) Purchase order files for supplies, equipment, material, or services used in the performance of a

contract; supporting documentation and backup files including, but not limited to, invoices, and

memoranda; e.g., memoranda of negotiations showing the principal elements of subcontract price

negotiations (see 52.244-2): Retain 4 years.

(g) Production records of quality control, reliability, and inspection: Retain 4 years.

(h) Property records (see FAR 45.101 and 52.245-1): Retain 4 years.

Subpart 4.8 - Government Contract Files

4.800 Scope of subpart.

This subpart prescribes requirements for establishing, maintaining, and disposing of contract files.

4.801 General.

(a) The head of each office performing contracting, contract administration, or paying functions shall

establish files containing the records of all contractual actions.

(b) The documentation in the files (see 4.803) shall be sufficient to constitute a complete history of

the transaction for the purpose of-

(1) Providing a complete background as a basis for informed decisions at each step in the acquisition

process;

(2) Supporting actions taken;
(3) Providing information for reviews and investigations; and

(4) Furnishing essential facts in the event of litigation or congressional inquiries.

(c) The files to be established include-

(1) A file for cancelled solicitations;

(2) A file for each contract; and

(3) A file such as a contractor general file, containing documents relating, for example-to-

(i) No specific contract;

(ii) More than one contract; or

(iii) The contractor in a general way (e.g., contractor’s management systems, past performance, or

capabilities).

4.802 Contract files.

(a) A contract file should generally consist of-

(1) The contracting office contract file that documents the basis for the acquisition and the award,

the assignment of contract administration (including payment responsibilities), and any subsequent

actions taken by the contracting office;

(2) The contract administration office contract file that documents actions reflecting the basis for

and the performance of contract administration responsibilities; and

(3) The paying office contract file that documents actions prerequisite to, substantiating, and

reflecting contract payments.

(b) Normally, each file should be kept separately; however, if appropriate, any or all of the files may

be combined; e.g., if all functions or any combination of the functions are performed by the same

office.

(c) Files must be maintained at organizational levels that ensure-

(1) Effective documentation of contract actions;

(2) Ready accessibility to principal users;

(3) Minimal establishment of duplicate and working files;

(4) The safeguarding of classified documents; and

(5) Conformance with agency regulations for file location and maintenance.

(d) If the contract files or file segments are decentralized (e.g., by type or function) to various

organizational elements or to other outside offices, responsibility for their maintenance must be

assigned. A central control and, if needed, a locator system should be established to ensure the

ability to locate promptly any contract files.
(e) Contents of contract files that are contractor bid or proposal information or source selection

information as defined in 2.101 must be protected from disclosure to unauthorized persons (see

3.104-4).

(f) Agencies may retain contract files in any medium (paper, electronic, microfilm, etc.) or any

combination of media, as long as the requirements of this subpart are satisfied.

4.803 Contents of contract files.

The following are examples of the records normally contained, if applicable, in contract files:

(a) Contracting office contract file.

(1) Purchase request, acquisition planning information, and other presolicitation documents.

(2) Justifications and approvals, determinations and findings, and associated documents.

(3) Evidence of availability of funds.

(4) Synopsis of proposed acquisition as required by part 5 or a reference to the synopsis.

(5) The list of sources solicited, and a list of any firms or persons whose requests for copies of the

solicitation were denied, together with the reasons for denial.

(6) Set-aside decision (see 19.1506) including the type and extent of market research conducted.

(7) Government estimate of contract price.

(8) A copy of the solicitation and all amendments thereto.

(9) Security requirements and evidence of required clearances.

(10) A copy of each offer or quotation, the related abstract, and records of determinations

concerning late offers or quotations. Unsuccessful offers or quotations may be maintained

separately, if cross-referenced to the contract file. The only portions of the unsuccessful offer or

quotation that need be retained are-

(i) Completed solicitation sections A, B, and K;

(ii) Technical and management proposals;

(iii) Cost/price proposals; and

(iv) Any other pages of the solicitation that the offeror or quoter has altered or annotated.

(11) Contractor’s representations and certifications (see 4.1201(c)).

(12) Preaward survey reports or reference to previous preaward survey reports relied upon.

(13) Source selection documentation.

(14) Contracting officer’s determination of the contractor’s responsibility.
(15) Small Business Administration Certificate of Competency.

(16) Records of contractor’s compliance with labor policies including equal employment opportunity

policies.

(17) Data and information related to the contracting officer’s determination of a fair and reasonable

price. This may include-

(i) Certified cost or pricing data;

(ii) Data other than certified cost or pricing data;

(iii) Justification for waiver from the requirement to submit certified cost or pricing data; or

(iv) Certificates of Current Cost or Pricing Data.

(18) Packaging and transportation data.

(19) Cost or price analysis.

(20) Audit reports or reasons for waiver.

(21) Record of negotiation.

(22) Justification for type of contract.

(23) Authority for deviations from this regulation, statutory requirements, or other restrictions.

(24) Required approvals of award and evidence of legal review.

(25) Notice of award.

(26) The original of-

(i) The signed contract or award;

(ii) All contract modifications; and

(iii) Documents supporting modifications executed by the contracting office.

(27) Synopsis of award or reference thereto.

(28) Notice to unsuccessful quoters or offerors and record of any debriefing.

(29) Acquisition management reports (see subpart 4.6).

(30) Bid, performance, payment, or other bond documents, or a reference thereto, and notices to

sureties.

(31) Report of postaward conference.

(32) Notice to proceed, stop orders, and any overtime premium approvals granted at the time of

award.

(33) Documents requesting and authorizing modification in the normal assignment of contract
administration functions and responsibility.

(34) Approvals or disapprovals of requests for waivers or deviations from contract requirements.

(35) Rejected engineering change proposals.

(36) Royalty, invention, and copyright reports (including invention disclosures) or reference thereto.

(37) Contract completion documents.

(38) Documentation regarding termination actions for which the contracting office is responsible.

(39) Cross-references to pertinent documents that are filed elsewhere.

(40) Any additional documents on which action was taken or that reflect actions by the contracting

office pertinent to the contract.

(41) A current chronological list identifying the awarding and successor contracting officers, with

inclusive dates of responsibility.

(42) When limiting competition, or awarding on a sole source basis, to economically disadvantaged

women-owned small business (EDWOSB) concerns or women-owned small business (WOSB)

concerns eligible under the WOSB Program in accordance with subpart 19.15, include

documentation-

(i) Of the type and extent of market research; and

(ii) That the NAICS code assigned to the acquisition is for an industry that SBA has designated as-

(A) Underrepresented for EDWOSB concerns; or

(B) Substantially underrepresented for WOSB concerns.

(b) Contract administration office contract file.

(1) Copy of the contract and all modifications, together with official record copies of supporting

documents executed by the contract administration office.

(2) Any document modifying the normal assignment of contract administration functions and

responsibility.

(3) Security requirements.

(4) Certified cost or pricing data, Certificates of Current Cost or Pricing Data, or data other than

certified cost or pricing data; cost or price analysis; and other documentation supporting contractual

actions executed by the contract administration office.

(5) Preaward survey information.

(6) Purchasing system information.

(7) Consent to subcontract or purchase.

(8) Performance and payment bonds and surety information.
(9) Postaward conference records.

(10) Orders issued under the contract.

(11) Notice to proceed and stop orders.

(12) Insurance policies or certificates of insurance or references to them.

(13) Documents supporting advance or progress payments.

(14) Progressing, expediting, and production surveillance records.

(15) Quality assurance records.

(16) Property administration records.

(17) Documentation regarding termination actions for which the contract administration office is

responsible.

(18) Cross reference to other pertinent documents that are filed elsewhere.

(19) Any additional documents on which action was taken or that reflect actions by the contract

administration office pertinent to the contract.

(20) Contract completion documents.

(c) Paying office contract file.

(1) Copy of the contract and any modifications.

(2) Bills, invoices, vouchers, and supporting documents.

(3) Record of payments or receipts.

(4) Other pertinent documents.

4.804 Closeout of contract files.

4.804-1 Closeout by the office administering the contract.

(a) Except as provided in paragraph (c) of this section, time standards for closing out contract files

are as follows:

(1) Files for contracts using simplified acquisition procedures should be considered closed when the

contracting officer receives evidence of receipt of property and final payment, unless otherwise

specified by agency regulations.

(2) Files for firm-fixed-price contracts, other than those using simplified acquisition procedures,

should be closed within 6 months after the date on which the contracting officer receives evidence of

physical completion.
(3) Files for contracts requiring settlement of indirect cost rates should be closed within 36 months

of the month in which the contracting officer receives evidence of physical completion.

(4) Files for all other contracts should be closed within 20 months of the month in which the

contracting officer receives evidence of physical completion.

(b) When closing out the contract files at 4.804-1(a)(2), (3), and (4), the contracting officer shall use

the closeout procedures at 4.804-5. However, these closeout actions may be modified to reflect the

extent of administration that has been performed. Quick closeout procedures (see 42.708) should be

used, when appropriate, to reduce administrative costs and to enable deobligation of excess funds.

(c) A contract file shall not be closed if-

(1) The contract is in litigation or under appeal; or

(2) In the case of a termination, all termination actions have not been completed.

4.804-2 Closeout of the contracting office files if another office administers the contract.

(a) Contract files for contracts using simplified acquisition procedures should be considered closed

when the contracting officer receives evidence of receipt of property and final payment, unless

otherwise specified by agency regulation.

(b) All other contract files shall be closed as soon as practicable after the contracting officer receives

a contract completion statement from the contract administration office. The contracting officer

shall ensure that all contractual actions required have been completed and shall prepare a statement

to that effect. This statement is authority to close the contract file and shall be made a part of the

official contract file.

4.804-3 Closeout of paying office contract files.

The paying office shall close the contract file upon issuance of the final payment voucher.

4.804-4 Physically completed contracts.

(a) Except as provided in paragraph (b) of this section, a contract is considered to be physically

completed when-

(1)

(i) The contractor has completed the required deliveries and the Government has inspected and

accepted the supplies;

(ii) The contractor has performed all services and the Government has accepted these services; and

(iii) All option provisions, if any, have expired; or

(2) The Government has given the contractor a notice of complete contract termination.
(b) Rental, use, and storage agreements are considered to be physically completed when-

(1) The Government has given the contractor a notice of complete contract termination; or

(2) The contract period has expired.

4.804-5 Procedures for closing out contract files.

(a) The contract administration office is responsible for initiating (automated or manual)

administrative closeout of the contract after receiving evidence of its physical completion. At the

outset of this process, the contract administration office must review the contract funds status and

notify the contracting office of any excess funds the contract administration office might deobligate.

When complete, the administrative closeout procedures must ensure that-

(1) Disposition of classified material is completed;

(2) Final patent report is cleared. If a final patent report is required, the contracting officer may

proceed with contract closeout in accordance with the following procedures, or as otherwise

prescribed by agency procedures:

(i) Final patent reports should be cleared within 60 days of receipt.

(ii) If the final patent report is not received, the contracting officer shall notify the contractor of the

contractor’s obligations and the Government’s rights under the applicable patent rights clause, in

accordance with 27.303. If the contractor fails to respond to this notification, the contracting officer

may proceed with contract closeout upon consultation with the agency legal counsel responsible for

patent matters regarding the contractor’s failure to respond.

(3) Final royalty report is cleared;

(4) There is no outstanding value engineering change proposal;

(5) Plant clearance report is received;

(6) Property clearance is received;

(7) All interim or disallowed costs are settled;

(8) Price revision is completed;

(9) Subcontracts are settled by the prime contractor;

(10) Prior year indirect cost rates are settled;

(11) Termination docket is completed;

(12) Contract audit is completed;

(13) Contractor’s closing statement is completed;

(14) Contractor’s final invoice has been submitted; and

(15) Contract funds review is completed and excess funds deobligated.
(b) When the actions in paragraph (a) of this section have been verified, the contracting officer

administering the contract must ensure that a contract completion statement, containing the

following information, is prepared:

(1) Contract administration office name and address (if different from the contracting office).

(2) Contracting office name and address.

(3) Contract number.

(4) Last modification number.

(5) Last call or order number.

(6) Contractor name and address.

(7) Dollar amount of excess funds, if any.

(8) Voucher number and date, if final payment has been made.

(9) Invoice number and date, if the final approved invoice has been forwarded to a disbursing office

of another agency or activity and the status of the payment is unknown.

(10) A statement that all required contract administration actions have been fully and satisfactorily

accomplished.

(11) Name and signature of the contracting officer.

(12) Date.

(c) When the statement is completed, the contracting officer must ensure that-

(1) The signed original is placed in the contracting office contract file (or forwarded to the

contracting office for placement in the files if the contract administration office is different from the

contracting office); and

(2) A signed copy is placed in the appropriate contract administration file if administration is

performed by a contract administration office.

4.805 Storage, handling, and contract files.

(a) Agencies must prescribe procedures for the handling, storing, and disposing of contract files, in

accordance with the National Archives and Records Administration (NARA) General Records

Schedule 1.1, Financial Management and Reporting Records. The Financial Management and

Reporting Records can be found at http://www.archives.gov/records-mgmt/grs.html. These

procedures must take into account documents held in all types of media, including microfilm and

various electronic media. Agencies may change the original medium to facilitate storage as long as

the requirements of the part, law, and other regulations are satisfied. The process used to create

and store records must record and reproduce the original document, including signatures and other

written and graphic images completely, accurately, and clearly. Data transfer, storage, and retrieval

procedures must protect the original data from alteration. Unless law or other regulations require

signed originals to be kept, they may be destroyed after the responsible agency official verifies that
record copies on alternate media and copies reproduced from the record copy are accurate,

complete, and clear representations of the originals. When original documents have been converted

to alternate media for storage, the requirements in Table 4-1 of this section also apply to the record

copies in the alternate media.

(b) If administrative records are mixed with program records and cannot be economically

segregated, the entire file should be kept for the period of time approved for the program records.

Similarly, if documents described in the following table are part of a subject or case file that

documents activities that are not described in the table, they should be treated in the same manner

as the files of which they are a part.

(c) An agency that requires a shorter retention period than those identified in Table 4-1 shall request

approval from NARA through the agency’s records officer.

Table 4-1 - Retention Periods

Record Retention period

(1) Contracts (and related records or documents,

including successful and unsuccessful proposals, except

see paragraph (c)(2) of this section regarding

contractor payrolls submitted under construction

contracts).

6 years after final payment.

(2) Contractor’s payrolls submitted under construction

contracts in accordance with Department of Labor

regulations (29 CFR 5.5(a)(3)), with related

certifications, anti-kickback affidavits, and other related

records.

3 years after contract completion

unless contract performance is the

subject of an enforcement action

on that date (see paragraph (c)(8)

of this section).

(3) Unsolicited proposals not accepted by a department

or agency.

Retain in accordance with agency

procedures.

(4) Files for canceled solicitations. 6 years after cancellation.

(5) Other copies of procurement file records used for

administrative purposes. When business use ceases.

(6) Documents pertaining generally to the contractor as

described at 4.801(c)(3). Until superseded or obsolete.

(7) Data submitted to the Federal Procurement Data

System (FPDS). Electronic data file maintained by fiscal

year, containing unclassified records of all

procurements exceeding the micro-purchase threshold,

and information required under 4.603.

6 years after submittal to FPDS.
Record Retention period

(8) Investigations, cases pending or in litigation

(including protests), or similar matters (including

enforcement actions).

Until final clearance or settlement,

or, if related to a document

identified in paragraphs (c)(1)

through (7) of this section, for the

retention period specified for the

related document, whichever is

later.

Subpart 4.9 - Taxpayer Identification Number Information

4.900 Scope of subpart.

This subpart provides policies and procedures for obtaining-

(a) Taxpayer Identification Number (TIN) information that may be used for debt collection purposes;

and

(b) Contract information and payment information for submittal to the payment office for Internal

Revenue Service (IRS) reporting purposes.

4.901 Definition.

Common parent, as used in this subpart, means that corporate entity that owns or controls an

affiliated group of corporations that files its Federal income tax returns on a consolidated basis, and

of which the offeror is a member.

4.902 General.

(a) Debt collection. 31 U.S.C.7701(c) requires each contractor doing business with a Government

agency to furnish its TIN to that agency. 31 U.S.C.3325(d) requires the Government to include, with

each certified voucher prepared by the Government payment office and submitted to a disbursing

official, the TIN of the contractor receiving payment under the voucher. The TIN may be used by the

Government to collect and report on any delinquent amounts arising out of the contractor’s

relationship with the Government.

(b) Information reporting to the IRS. The TIN is also required for Government reporting of certain

contract information (see 4.903) and payment information (see 4.904) to the IRS.

4.903 Reporting contract information to the IRS.

(a) 26 U.S.C.6050M, as implemented in 26 CFR, requires heads of Federal executive agencies to

report certain information to the IRS.
(b)

(1) The required information applies to contract modifications-

(i) Increasing the amount of a contract awarded before January 1,1989, by $50,000 or more; and

(ii) Entered into on or after April 1,1990.

(2) The reporting requirement also applies to certain contracts and modifications thereto in excess

of $25,000 entered into on or after January 1,1989.

(c) The information to report is-

(1) Name, address, and TIN of the contractor;

(2) Name and TIN of the common parent (if any);

(3) Date of the contract action;

(4) Amount obligated on the contract action; and

(5) Estimated contract completion date.

(d) Transmit the information to the IRS through the Federal Procurement Data System (see subpart 

4.6 and implementing instructions).

4.904 Reporting payment information to the IRS.

26 U.S.C. 6041 and 6041 A, as implemented in 26 CFR, in part, require payors, including

Government agencies, to report to the IRS, on Form 1099, payments made to certain contractors. 26

U.S.C. 6109 requires a contractor to provide its TIN if a Form 1099 is required. The payment office

is responsible for submitting reports to the IRS.

4.905 Solicitation provision.

The contracting officer shall insert the provision at 52.204-3, Taxpayer Identification, in solicitations

that-

(a) Do not include the provision at 52.204-7, System for Award Management; and

(b) Are not conducted under the procedures of part 12.

Subpart 4.10 - Uniform Use of Line Items

4.1000 Scope.

This subpart prescribes policies and procedures for assigning line items and subline items and their

identifiers. However, in order to provide agencies with time to transition their information systems,
agencies have until October 1, 2019, to apply the requirements of 4.1002 through 4.1008.

4.1001 Policy.

In order to improve the accuracy, traceability, and usability of procurement data, procurement

instruments shall identify the supplies or services to be acquired as separately identified line items

and, as needed, subline items.

(a) Line items are established to define deliverables or organize information about deliverables.

Each line item describes characteristics for the item purchased, e.g., pricing, delivery, and funding

information.

(b) Each line item may be subdivided into separate unique subsets (called subline items) to ease

administration. If a line item has deliverable subline items, the line item is informational. Subline

items differentiate between or among certain characteristics of the line item, such as colors or sizes,

dates of delivery, destinations, or places of performance. Subline items are established to define

deliverables or organize information about deliverables.

4.1002 Applicability.

The policies of this subpart shall apply to the following procurement instruments, to include

amendments, modifications, and change orders thereto:

(a) Solicitations.

(b) Contracts, including, but not limited to, Governmentwide acquisition contracts (GWACs), multiagency contracts (MACs), Federal Supply Schedule (FSS) contracts, indefinite-delivery contracts,

and purchase orders.

(c) Agreements that include pre-priced supplies or services.

(d) Task and delivery orders.

4.1003 Establishing line items.

Establish separate line items for deliverables that have the following characteristics except as

provided at 4.1005-2:

(a) Separately identifiable.

(1) A supply is separately identifiable if it has its own identification (e.g., national stock number

(NSN), item description, manufacturer's part number).

(2) Services are separately identifiable if they have no more than one statement of work or

performance work statement.

(3) If the procurement instrument involves a first article (see subpart 9.3), establish a separate line

item for each item requiring a separate approval. If the first article consists of a lot composed of a

mixture of items that will be approved as a single lot, a single line item may be used.
(b) Single unit price or total price.

(c) Single accounting classification citation. A single deliverable may be funded by multiple

accounting classifications when the deliverable effort cannot be otherwise subdivided.

(d) Separate delivery schedule, destination, period of performance, or place of performance.

(e) Single contract pricing type (e.g., fixed-price or cost-reimbursement).

4.1004 Establishing subline items.

Subline items may be used to facilitate tracking of performance, deliverables, payment, and contract

funds accounting or for other management purposes. Subline items may be either deliverable or

informational. The list of characteristics at 4.1003 applies to deliverable subline items, but it is not

applicable to informational subline items. A line item with subline items shall contain only that

information that is common to all subline items thereunder. All subline items under one line item

shall be the same contract type as the line item.

(a) Deliverable subline items. Deliverable subline items may be used for several related items that

require separate identification. For example, instead of establishing multiple separate line items,

subline items may be established for-

(1) Items that are basically the same, except for minor variations such as–

(i) Size or color;

(ii) Accounting classification, but see also 4.1005-1(a)(4); or

(iii) Date of delivery, destination, or period or place of performance;

(2) Separately priced collateral functions that relate to the primary product, such as packaging and

handling, or transportation; or

(3) Items to be separately identified at the time of shipment or performance.

(b) Informational subline items.

(1) Informational subline items may be used by agencies for administrative purposes. This type of

subline item identifies information that relates directly to the line item and is an integral part of it

(e.g., parts of an assembly or parts of a kit).

(2) Position informational subline items within the line item description, not in the quantity or price

fields.

4.1005 Data elements for line items and subline items.

4.1005-1 Required data elements.

(a) Except as provided in 4.1005-2, each line item or subline item shall include in the schedule

(described at 12.303(b)(4), 14.201-2, or 15.204-2, or in a comparable section of the procurement
instrument), at a minimum, the following information as separate, distinct data elements:

(1) Line item or subline item number established in accordance with agency procedures.

(2) Description of what is being purchased.

(3) Product or Service Code (PSC).

(4) Accounting classification citation.

(i) Line items or deliverable subline items. If multiple accounting classifications for a single

deliverable apply, include the dollar amount for each accounting classification in the schedule (or a

comparable section of the procurement instrument).

(ii) Informational subline items. An accounting classification citation is not required. (See 4.1004).

(5)

(i) For fixed-price line items:

(A) Unit of measure.

(B) Quantity.

(C) Unit price.

(D) Total price.

(ii) For cost-reimbursement line items:

(A) Unit of measure.

(B) Quantity.

(C) Estimated cost.

(D) Fee (if any).

(E) Total estimated cost plus any fee.

(b) If a contract contains a combination of fixed-price, time-and-materials, labor-hour, or costreimbursable line items, identify the contract type for each line item in the schedule (or a

comparable section of the procurement instrument) to facilitate payment.

(c) Each deliverable line item or deliverable subline item shall have its own delivery schedule,

destination, period of performance, or place of performance expressly stated in the appropriate

section of the procurement instrument ("as required" constitutes an expressly stated delivery term).

When a line item has deliverable subline items, the delivery schedule, destination, period of

performance, or place of performance shall be identified at the subline item level, rather than the

line item level.

(d) Terms and conditions in other sections of the contract (such as contract clauses or payment

instructions) shall also specify applicability to individual line items if not applicable to the contract
as a whole.

4.1005-2 Exceptions.

(a) Indefinite-delivery contracts-

(1) General. The following required data elements are not known at time of issuance of an indefinitedelivery contract, but shall be provided in each order at the time of issuance: accounting

classification, delivery date and destination, or period and place of performance.

(2) Indefinite-delivery indefinite-quantity (IDIQ) and requirements contracts.

(i) IDIQ and requirements contracts may omit the quantity at the line item level for the base award

provided that the total contract minimum and maximum, or the estimate, respectively, is stated.

(ii) Multiple-award IDIQ contracts awarded using the procedures at 13.106-1(a)(2)(iv)(A) or

15.304(c)(1)(ii)(A) may omit price or cost at the line item or subline item level for the contract

award, provided that the total contract minimum and maximum is stated (see 16.504(a)(1)).

(b) Item description and PSC. These data elements are not required in the line item if there are

associated deliverable subline items that include the actual detailed identification. When this

exception applies, use a general narrative description for the line item.

(c) Single unit price or single total price. The requirement for a single unit price or single total price

at the line item level does not apply if any of the following conditions are present:

(1) There are associated deliverable subline items that are priced.

(2) The line item or subline item is not separately priced.

(3) The supplies or services are being acquired on a cost-reimbursement, time-and-materials, or

labor-hour basis.

(4) The procurement instrument is for services and firm prices have been established for elements of

the total price, but the actual number of the elements is not known until performance (e.g., a laborhour contract for maintenance/repair). The contracting officer may structure these procurement

instruments to reflect a firm or estimated total amount for each line item.

4.1006 Modifications.

(a) When a new item (such as an increased quantity) is added to the procurement instrument, assign

a new line item number.

(b) If the modification relates to existing line items, the modification shall refer to those items.

4.1007 Solicitation alternative line item proposal.

Solicitations should be structured to allow offerors to propose alternative line items (see 4.1008 and
52.212-1(e)). For example, when soliciting certain items using units of measure such as kit, set, or

lot, the offeror may not be able to group and deliver all items in a single shipment.

4.1008 Solicitation provision.

Insert the provision at 52.204-22, Alternative Line Item Proposal, in all solicitations.

Subpart 4.11 - System for Award Management

4.1100 Scope.

This subpart prescribes policies and procedures for requiring contractor registration in the System

for Award Management (SAM) to—

(a) Increase visibility of vendor sources (including their geographical locations) for specific supplies

and services; and

(b) Establish a common source of vendor data for the Government.

4.1101 Definition.

As used in this subpartAgreement means basic agreement, basic ordering agreement, or blanket purchase agreement.

4.1102 Policy.

(a) Offerors and quoters are required to be registered in SAM at the time an offer or quotation is

submitted in order to comply with the annual representations and certifications requirements except

for—

(1) Purchases under the micro-purchase threshold that use a Governmentwide commercial purchase

card as both the purchasing and payment mechanism, as opposed to using the purchase card for

payment only;

(2) Classified contracts (see 2.101) when registration in SAM, or use of SAM data, could compromise

the safeguarding of classified information or national security;

(3) Contracts awarded by–

(i) Deployed contracting officers in the course of military operations, including, but not limited to,

contingency operations as defined in 10 U.S.C.101(a)(13) or humanitarian or peacekeeping

operations as defined in 10 U.S.C. 3015(2);

(ii) Contracting officers located outside the United States and its outlying areas, as defined in 2.101,

for work to be performed in support of diplomatic or developmental operations, including those
performed in support of foreign assistance programs overseas, in an area that has been designated

by the Department of State as a danger pay post (see https://aoprals.state.gov/);or

(iii) Contracting officers in the conduct of emergency operations, such as responses to natural or

environmental disasters or national or civil emergencies, e.g., Robert T. Stafford Disaster Relief and

Emergency Assistance Act (42 U.S.C.5121);

(4) Contracts with individuals for performance outside the United States and its outlying areas;

(5) Contracts awarded without providing for full and open competition due to unusual or compelling

urgency (see 6.302-2);

(6) Contract actions at or below $30,000 awarded to foreign vendors for work performed outside the

United States, if it is impractical to obtain SAM registration; and

(7) Micro-purchases that do not use the electronic funds transfer (EFT) method for payment and are

not required to be reported (see subpart 4.6).

(b) If practical, the contracting officer shall modify the contract or agreement awarded under

paragraph (a)(3) of this section to require SAM registration.

(c) Contracting officers shall use the legal business name or "doing business as" name and physical

address from the contractor's SAM registration for the provided unique entity identifier to identify

the contractor in section A of the contract schedule, similar sections of non-uniform contract formats

and agreements, and all corresponding forms and data exchanges. Contracting officers shall make

no changes to the data retrieved from SAM.

(d)

(1)

(i) If a contractor has legally changed its business name or "doing business as" name (whichever is

shown on the contract), or has transferred the assets used in performing the contract, but has not

completed the necessary requirements regarding novation and change-of-name agreements in

subpart 42.12, the contractor is required to provide the responsible contracting officer a minimum

of one business day's written notification of its intention to change the name in SAM, comply with

the requirements of subpart 42.12, and agree in writing to the timeline and procedures specified by

the responsible contracting officer. Along with the notification, the contractor is required to provide

the contracting officer sufficient documentation to support the legally changed name.

(ii) If the contractor fails to comply with the requirements of paragraph (d)(1)(i) of the clause at

52.204-13, System for Award Management Maintenance, or fails to perform the agreement at

52.204-13, paragraph (d)(1)(i)(C), and, in the absence of a properly executed novation or change-ofname agreement, the SAM information that shows the contractor to be other than the contractor

indicated in the contract will be considered to be incorrect information within the meaning of the

"Suspension of Payment" paragraph of the EFT clause of the contract.

(2) The contractor shall not change the name or address for electronic funds transfer payments

(EFT) or manual payments, as appropriate, in the SAM record to reflect an assignee for the purpose

of assignment of claims (see subpart 32.8, Assignment of Claims).

(3) Assignees shall be separately registered in SAM. Information provided to the contractor’s SAM
record that indicates payments, including those made by EFT, to an ultimate recipient other than

that contractor will be considered to be incorrect information within the meaning of the "Suspension

of payment" paragraph of the EFT clause of the contract.

4.1103 Procedures.

(a) Unless the acquisition is exempt under 4.1102(a), the contracting officer—

(1) Shall verify that the offeror or quoter is registered in SAM (see paragraph (b) of this section) at

the time an offer or quotation is submitted;

(2) Should use the unique entity identifier to verify SAM registration–

(i) Via https://www.sam.gov; or

(ii) As otherwise provided by agency procedures; or

(3) Need not verify SAM registration before placing an order or call if the contract or agreement

includes the clause at 52.204-13, System for Award Management Maintenance, or a similar agency

clause, except when use of the Governmentwide commercial purchase card is contemplated as a

method of payment. (See 32.1108(b)(2).)

(b) If the contract action is being awarded in accordance with 4.1102(a)(5), the contractor is

required to be registered in SAM within 30 days after contract award, or at least three days prior to

submission of the first invoice, whichever occurs first.

(c) Agencies shall protect against improper disclosure of information contained in SAM.

(d) The contracting officer shall, on contractual documents transmitted to the payment office,

provide the unique entity identifier, or, if applicable, the Electronic Funds Transfer indicator, in

accordance with agency procedures.

4.1104 Disaster Response Registry.

Contracting officers shall consult the Disaster Response Registry via https://www.sam.gov, Search

Records, Advanced Search, Disaster Response Registry Search when contracting for debris removal,

distribution of supplies, reconstruction, and other disaster or emergency relief activities inside the

United States and outlying areas. (See 26.205).

4.1105 Solicitation provision and contract clauses.

(a)

(1) Insert the provision at 52.204-7, System for Award Management, in all solicitations except when

the conditions in 4.1102(a) apply.

(2) Insert the provision at 52.204-7, System for Award Management, with its Alternate I when the

solicitation is anticipated to be awarded in accordance with 4.1102(a)(5).
(b) Insert the clause at 52.204-13, System for Award Management Maintenance, in solicitations that

contain the provision at 52.204-7, and resulting contracts.

Subpart 4.12 - Representations and Certifications

4.1200 Scope.

This subpart prescribes policies and procedures for requiring submission and maintenance of

representations and certifications via the System for Award Management (SAM) to-

(a) Eliminate the administrative burden for contractors of submitting the same information to

various contracting offices;

(b) Establish a common source for this information to procurement offices across the Government;

and

(c) Incorporate by reference the contractor’s representations and certifications in the awarded

contract.

4.1201 Policy.

(a) Offerors and quoters are required to complete electronic annual representations and

certifications in SAM accessed via https://www.sam.gov as a part of required registration (see FAR

4.1102).

(b)

(1) All registrants are required to review and update the representations and certifications

submitted to SAM as necessary, but at least annually, to ensure they are kept current, accurate, and

complete. The representations and certifications are effective until one year from date of submission

or update to SAM.

(2) A contractors that represented itself as a small business prior to award of a contract must update

the representations and certifications in SAM in accordance with 52.219-28, A contractor that

represented itself as other than small business before contract award and qualifies as a small

business may update its representations and certifications in SAM in accordance with 52.219-28.

(c) Data in SAM is archived and is electronically retrievable. Therefore, when a prospective

contractor has completed representations and certifications electronically in SAM, the contracting

officer must reference the date of SAM verification in the contract file to satisfy contract file

documentation requirements of 4.803(a)(11). However, if an offeror identifies changes to SAM data

pursuant to the FAR provisions at 52.204-8(d) or 52.212-3(b), the contracting officer must include a

copy of the changes in the contract file.

(d) The contracting officer shall incorporate the representations and certifications by reference in

the contract (see 52.204-19, or for acquisitions of commercial products or commercial services see

52.212-4(v)).
4.1202 Solicitation provision and contract clause.

(a) Insert the provision at 52.204-8, Annual Representations and Certifications, in solicitations,

except for solicitations for commercial products or commercial services issued under part 12. The

contracting officer shall check the applicable provisions at 52.204-8(c)(2). Use the provision with its

Alternate I in solicitations issued after October 1, 2025, that will result in a multiple-award contract

with more than one North American Industry Classification System code assigned (see 19.102(b)).

When the provision at 52.204-7, System for Award Management, is included in the solicitation, do

not separately include the following representations and certifications:

(1) 52.203-2, Certificate of Independent Price Determination.

(2) 52.203-11, Certification and Disclosure Regarding Payments to Influence Certain Federal

Transactions.

(3) 52.203-18, Prohibition on Contracting with Entities that Require Certain Internal Confidentiality

Agreements or Statements-Representation.

(4) 52.204-3, Taxpayer Identification.

(5) 52.204-5, Women-Owned Business (Other Than Small Business).

(6) 52.204-17, Ownership or Control of Offeror.

(7) 52.204-20, Predecessor of Offeror.

(8) 52.204-26, Covered Telecommunications Equipment or Services-Representation.

(9) 52.209-2, Prohibition on Contracting with Inverted Domestic Corporations-Representation.

(10) 52.209-5, Certification Regarding Responsibility Matters.

(11) 52.209-11, Representation by Corporations Regarding Delinquent Tax Liability or a Felony

Conviction under any Federal Law.

(12) 52.214-14, Place of Performance-Sealed Bidding.

(13) 52.215-6, Place of Performance.

(14) 52.219-1, Small Business Program Representations (Basic, Alternates I, and II).

(15) 52.219-2, Equal Low Bids.

(16) [Reserved]

(17) 52.222-18, Certification Regarding Knowledge of Child Labor for Listed End Products.

(18) 52.222-22, Previous Contracts and Compliance Reports.

(19) 52.222-25, Affirmative Action Compliance.

(20) 52.222-38, Compliance with Veterans’ Employment Reporting Requirements.
(21) 52.222-48, Exemption from Application of the Service Contract Labor Standards to Contracts

for Maintenance, Calibration, or Repair of Certain Equipment–Certification.

(22) 52.222-52, Exemption from Application of the Service Contract Labor Standards to Contracts

for Certain Services-Certification.

(23) 52.223-1, Biobased Product Certification.

(24) 52.223-4, Recovered Material Certification.

(25) 52.223-9, Estimate of Percentage of Recovered Material Content for EPA-Designated Items

(Alternate I only).

(26) 52.223-22, Public Disclosure of Greenhouse Gas Emissions and Reduction Goals-Representation.

(27) 52.225-2, Buy American Certificate.

(28) 52.225-4, Buy American-Free Trade Agreements-Israeli Trade Act Certificate (Basic, Alternates

II, and III).

(29) 52.225-6, Trade Agreements Certificate.

(30) 52.225-20, Prohibition on Conducting Restricted Business Operations in Sudan-Certification.

(31) 52.225-25, Prohibition on Contracting with Entities Engaging in Certain Activities or

Transactions Relating to Iran-Representation and Certifications.

(32) 52.226-2, Historically Black College or University and Minority Institution Representation.

(33) 52.227-6, Royalty Information (Basic & Alternate I).

(34) 52.227-15, Representation of Limited Rights Data and Restricted Computer Software.

(b) The contracting officer shall insert the clause at 52.204-19, Incorporation by Reference of

Representations and Certifications, in solicitations and contracts.

Subpart 4.13 - Personal Identity Verification

4.1300 Scope of subpart.

This subpart provides policy and procedures associated with Personal Identity Verification as

required by-

(a) Federal Information Processing Standards Publication (FIPS PUB) Number 201, "Personal

Identity Verification of Federal Employees and Contractors"; and

(b) Office of Management and Budget (OMB) Guidance M-05-24, dated August 5, 2005,

"Implementation of Homeland Security Presidential Directive (HSPD) 12-Policy for a Common

Identification Standard for Federal Employees and Contractors."
4.1301 Policy.

(a) Agencies must follow FIPS PUB Number 201 and the associated OMB implementation guidance

for personal identity verification for all affected contractor and subcontractor personnel when

contract performance requires contractors to have routine physical access to a Federally-controlled

facility and/or routine access to a Federally-controlled information system.

(b) Agencies must include their implementation of FIPS PUB 201 and OMB Guidance M-05-24 in

solicitations and contracts that require the contractor to have routine physical access to a Federallycontrolled facility and/or routine access to a Federally-controlled information system.

(c) Agencies must designate an official responsible for verifying contractor employee personal

identity.

(d)

(1) Agency procedures for the return of Personal Identity Verification (PIV) products shall ensure

that Government contractors account for all forms of Government-provided identification issued to

Government contractor employees under a contract, i.e., the PIV cards or other similar badges, and

shall ensure that contractors return such identification to the issuing agency as soon as any of the

following occurs, unless otherwise determined by the agency:

(i) When no longer needed for contract performance.

(ii) Upon completion of a contractor employee’s employment.

(iii) Upon contract completion or termination.

(2) The contracting officer may delay final payment under a contract if the contractor fails to comply

with these requirements.

4.1302 Acquisition of approved products and services for personal identity

verification.

(a) In order to comply with FIPS PUB 201, agencies must purchase only approved personal identity

verification products and services.

(b) Agencies may acquire the approved products and services from the GSA, Federal Supply

Schedule 70, Special Item Number (SIN) 132-62, HSPD-12 Product and Service Components, in

accordance with ordering procedures outlined in FAR subpart 8.4.

(c) When acquiring personal identity verification products and services not using the process in

paragraph (b) of this section, agencies must ensure that the applicable products and services are

approved as compliant with FIPS PUB 201 including-

(1) Certifying the products and services procured meet all applicable Federal standards and

requirements;

(2) Ensuring interoperability and conformance to applicable Federal standards for the lifecycle of

the components; and
(3) Maintaining a written plan for ensuring ongoing conformance to applicable Federal standards for

the lifecycle of the components.

(d) For more information on personal identity verification products and services see

http://www.idmanagement.gov.

4.1303 Contract clause.

The contracting officer shall insert the clause at 52.204-9, Personal Identity Verification of

Contractor Personnel, in solicitations and contracts when contract performance requires contractors

to have routine physical access to a Federally-controlled facility and/or routine access to a Federallycontrolled information system. The clause shall not be used when contractors require only

intermittent access to Federally-controlled facilities.

Subpart 4.14 - Reporting Executive Compensation and FirstTier Subcontract Awards

4.1400 Scope of subpart.

This subpart implements section 2 of the Federal Funding Accountability and Transparency Act of

2006 (Pub.L.109-282), as amended by section 6202 of the Government Funding Transparency Act of

2008 (Pub. L. 110-252), which requires contractors to report subcontract award data and the total

compensation of the five most highly compensated executives of the contractor and subcontractor.

The public may view first-tier subcontract award data at http://www.usaspending.gov.

4.1401 Applicability.

(a) This subpart applies to all contracts with a value of $30,000 or more. Nothing in this subpart

requires the disclosure of classified information.

(b) Reporting of subcontract information will be limited to the first-tier subcontractor.

4.1402 Procedures.

(a) Agencies shall ensure that contractors comply with the reporting requirements of 52.204-10,

Reporting Executive Compensation and First-Tier Subcontract Awards. Agencies shall review

contractor reports on a quarterly basis to ensure the information is consistent with contract

information. The agency is not required to address data for which the agency would not normally

have supporting information, such as the compensation information required of contractors and

first-tier subcontractors. However, the agency shall inform the contractor of any inconsistencies with

the contract information and require that the contractor correct the report, or provide a reasonable

explanation as to why it believes the information is correct. Agencies may review the reports at

http://www.fsrs.gov.
(b) When contracting officers report the contract action to the Federal Procurement Data System

(FPDS) in accordance with FAR subpart 4.6, certain data will then pre-populate from FPDS, to assist

contractors in completing and submitting their reports. If data originating from FPDS is found by the

contractor to be in error when the contractor completes the subcontract report, the contractor

should notify the Government contracting officer, who is responsible for correcting the data in

FPDS. Contracts reported using the generic entity identifier allowed at FAR 4.605(c)(2) will interfere

with the contractor’s ability to comply with this reporting requirement, because the data will not

pre-populate from FPDS.

(c) If the contractor fails to comply with the reporting requirements, the contracting officer shall

exercise appropriate contractual remedies. In addition, the contracting officer shall make the

contractor’s failure to comply with the reporting requirements a part of the contractor’s

performance information under subpart 42.15.

(d) There is a reporting exception in 52.204-10(g) for contractors and subcontractors who had gross

income in the previous tax year under $300,000.

4.1403 Contract clause.

(a) Except as provided in paragraph (b) of this section, the contracting officer shall insert the clause

at 52.204-10, Reporting Executive Compensation and First-Tier Subcontract Awards, in all

solicitations and contracts of $30,000 or more.

(b) The clause is not prescribed for contracts that are not required to be reported in the Federal

Procurement Data System (FPDS) (see subpart 4.6).

Subpart 4.15 - [Reserved]

4.1500 [Reserved]

4.1501 [Reserved]

4.1502 [Reserved]

Subpart 4.16 - Unique Procurement Instrument Identifiers

4.1600 Scope of subpart.

This subpart prescribes policies and procedures for assigning unique Procurement Instrument

Identifiers (PIID) for each solicitation, contract, agreement, or order and related procurement

instrument.
4.1601 Policy.

(a) Establishment of a Procurement Instrument Identifier (PIID). Agencies shall have in place a

process that ensures that each PIID used to identify a solicitation or contract action is unique

Governmentwide, and will remain so for at least 20 years from the date of contract award. The PIID

shall be used to identify all solicitation and contract actions. The PIID shall also be used to identify

solicitation and contract actions in designated support and reporting systems (e.g., Federal

Procurement Data System, System for Award Management), in accordance with regulations,

applicable authorities, and agency policies and procedures.)

(b) Transition of PIID numbering. No later than October 1, 2017, agencies shall comply with

paragraph (a) of this section and use the requirements in 4.1602 and 4.1603 for all new solicitations

and contract awards. Until an agency’s transition is complete, it shall maintain its 2013 PIID format

that is on record with the General Services Administration’s Integrated Award Environment Program

Office (which maintains a registry of the agency unique identifier scheme). The 2013 PIID format

consisted of alpha characters in the first positions to indicate the agency, followed by alpha-numeric

characters; the 2017 format instead has the AAC in the beginning 6 positions.

(c) Change in the Procurement Instrument Identifier after its assignment.

(1) Agencies shall not change the PIID unless one of the following two circumstances apply:

(i) The PIID serial numbering system is exhausted. In this instance, the contracting officer may

assign a new PIID by issuing a contract modification.

(ii) Continued use of a PIID is administratively burdensome (e.g., for implementations of new agency

contract writing systems). In this instance, the contracting officer may assign a new PIID by issuing

a contract modification.

(2) The modification shall clearly identify both the original and the newly assigned PIID. Issuance of

a new PIID is an administrative change (see 43.101).

4.1602 Identifying the PIID and supplementary PIID.

(a) Identifying the PIID in solicitation and contract award documentation (including forms and

electronic generated formats). Agencies shall include all PIIDs for all related procurement actions as

identified in paragraphs (a)(1) through (5) of this section.

(1) Solicitation. Identify the PIID for all solicitations. For amendments to solicitations, identify a

supplementary PIID, in conjunction with the PIID for the solicitation.

(2) Contracts and purchase orders. Identify the PIID for contracts and purchase orders.

(3) Delivery and task orders. For delivery and task orders placed by an agency under a contract

(e.g., indefinite delivery indefinite quantity (IDIQ) contracts, multi-agency contracts (MAC),

Governmentwide acquisition contracts (GWACs), or Multiple Award Schedule (MAS) contracts),

identify the PIID for the delivery and task order and the PIID for the contract.

(4) Blanket purchase agreements and basic ordering agreements. Identify the PIID for blanket

purchase agreements issued in accordance with 13.303, and for basic agreements and basic
ordering agreements issued in accordance with subpart 16.7. For blanket purchase agreements

issued in accordance with subpart 8.4 under a MAS contract, identify the PIID for the blanket

purchase agreement and the PIID for the MAS contract.

(i) Orders. For orders against basic ordering agreements or blanket purchase agreements issued in

accordance with 13.303, identify the PIID for the order and the PIID for the blanket purchase

agreement or basic ordering agreement.

(ii) Orders under subpart 8.4. For orders against a blanket purchase agreement established under a

MAS contract, identify the PIID for the order, the PIID for the blanket purchase agreement, and the

PIID for the MAS contract.

(5) Modifications. For modifications to actions described in paragraphs (a)(2) through (4) of this

section, and in accordance with agency procedures, identify a supplementary PIID for the

modification in conjunction with the PIID for the contract, order, or agreement being modified.

(b) Placement of the PIID on forms. When the form (including electronic generated format) does not

provide spaces or fields for the PIID or supplementary PIID required in paragraph (a) of this section,

identify the PIID in accordance with agency procedures.

(c) Additional agency specific identification information. If agency procedures require additional

identification information in solicitations, contracts, or other related procurement instruments for

administrative purposes, separate and clearly identify the additional information from the PIID.

4.1603 Procedures.

(a) Elements of a PIID. The PIID consists of a combination of thirteen to seventeen alpha and/or

numeric characters sequenced to convey certain information. Do not use special characters (such as

hyphens, dashes, or spaces).

(1) Positions 1 through 6. The first six positions identify the department/agency and office issuing

the instrument. Use the AAC assigned to the issuing office for positions 1 through 6. Civilian agency

points of contact for obtaining an AAC are on the AAC Contact list maintained by the General

Services Administration and can be found at https://community.max.gov/x/24foL. For Department of

Defense (DoD) inquiries, contact the service/agency Central Service Point or DoD AAC Monitor, or if

unknown, email DODAADHQ@DLA.MIL for assistance.

(2) Positions 7 through 8. The seventh and eighth positions are the last two digits of the fiscal year in

which the procurement instrument is issued or awarded. This is the date the action is signed, not the

effective date if the effective date is different.

(3) Position 9. Indicate the type of instrument by entering one of the following upper case letters in

position nine. Departments and independent agencies may assign those letters identified for

department use below in accordance with their agency policy; however, any use must be applied to

the entire department or agency.

Instrument Letter

designation
Instrument Letter

designation

(i) Blanket purchase agreements A

(ii) invitations for bids B

(iii)Contracts of all types except indefinite-delivery contracts (see

subpart 16.5)

C

(iv) Indefinite-delivery contracts (including Federal Supply Schedules,

Governmentwide acquisition contracts (GWACs), and multi-agency

contracts)

D

(v) Reserved for future Federal Governmentwide use E

(vi) Task orders, delivery orders or calls under–

Indefinite-delivery contracts (including Federal Supply Schedules,

Governmentwide acquisition contracts (GWACs), and multi-agency

contracts);

Blanket purchase agreements; or

Basic ordering agreements

F

(vii) Basic ordering agreements. G

(viii) Agreements, including basic agreements and loan agreements, but

excluding blanket purchase agreements, basic ordering agreements,

and leases. Do not use this code for contracts or agreements with

provisions for orders or calls

H

(ix) Do not use this letter I

(x) Reserved for future Federal Governmentwide use J

(xi) Reserved for departmental or agency use K

(xii) Lease agreements L

(xiii) Reserved for departmental or agency use M

(xiv) Reserved for departmental or agency use N

(xv) Do not use this letter O
Instrument Letter

designation

(xvi) Purchase orders (assign V if numbering capacity of P is exhausted

during a fiscal year) P

(xvii) Requests for quotations (assign U if numbering capacity of Q is

exhausted during a fiscal year) Q

(xviii) Requests for proposals R

(xix) Reserved for departmental or agency use S

(xx) Reserved for departmental or agency use T

(xxi) See Q, requests for quotations U

(xxii) See P, purchase orders V

(xxiii) Reserved for future Federal Governmentwide use W

(xxiv) Reserved for future Federal Governmentwide use X

(xxv) Imprest fund Y

(xxvi) Reserved for future Federal Governmentwide use Z

(4) Positions 10 through 17. Enter the number assigned by the issuing agency in these positions.

Agencies may choose a minimum of four characters up to a maximum of eight characters to be used,

but the same number of characters must be used agency-wide. If a number less than the maximum is

used, do not use leading or trailing zeroes to make it equal the maximum in any system or data

transmission. A separate series of numbers may be used for any type of instrument listed in

paragraph (a)(3) of this section. An agency may reserve blocks of numbers or alpha-numeric

numbers for use by its various components.

(5) Illustration of PIID. The following illustrates a properly configured PIID using four characters in

the final positions:
(b) Elements of a supplementary PIID. Use the supplementary PIID to identify amendments to

solicitations and modifications to contracts, orders, and agreements. The supplementary PIID is

reported as a separate data element used in conjunction with, but not appended to, the PIID.

(1) Amendments to solicitations. Number amendments to solicitations sequentially using a four

position numeric serial number added to the 13-17 character PIID beginning with 0001.

(2) Modifications to contracts, orders, and agreements. Number modifications to contracts, orders,

and agreements using a six position alpha or numeric, or a combination thereof, added to the 13-17

character PIID. For example, a modification could be numbered P00001. This would be added to the

end of the 13-17 character PIID illustrated in (a)(5) of this section.

(i) Position 1. Identify the office issuing the modification. The letter P shall be designated for

modifications issued by the procuring contracting office. The letter A shall be used for modifications

issued by the contract administration office (if other than the procuring contracting office).

(ii) Positions 2 through 6. These positions may be alpha, numeric, or a combination thereof, in

accordance with agency procedures.

(iii) Each office authorized to issue modifications shall assign the supplementary identification

numbers in sequence (unless provided otherwise in agency procedures). Do not assign the numbers

until it has been determined that a modification is to be issued.

Subpart 4.17 - Service Contracts Inventory

4.1700 Scope of subpart.

This subpart implements section 743(a) of Division C of the Consolidated Appropriations Act, 2010
(Pub. L. 111-117), which requires agencies to report annually to the Office of Management and

Budget (OMB) on activities performed by service contractors. Section 743(a) applies to executive

agencies, other than the Department of Defense (DoD), covered by the Federal Activities Inventory

Reform Act (Pub. L. 105-270) (FAIR Act). The information reported in the inventory will be publicly

accessible.

4.1701 Definitions.

As used in this subpart–

FAIR Act agencies means the agencies required under the FAIR Act to submit inventories annually

of the activities performed by Government personnel.

First-tier subcontract means a subcontract awarded directly by the contractor for the purpose of

acquiring supplies or services (including construction) for performance of a prime contract. It does

not include the contractor’s supplier agreements with vendors, such as long-term arrangements for

materials or supplies that benefit multiple contracts and/or the costs of which are normally applied

to a contractor’s general and administrative expenses or indirect costs.

4.1702 Applicability.

(a) This subpart applies to–

(1) All FAIR Act agencies, except DoD as specified in 4.1705;

(2) Solicitations, contracts, and orders for services (including construction) that meet or exceed the

thresholds at 4.1703; and

(3) Contractors and first-tier subcontractors.

(b) Procedures for compiling and submitting agency service contract inventories are governed by

section 743(a)(3) of Division C of Pub. L. 111-117 and Office of Federal Procurement Policy (OFPP)

guidance. The guidance is available at the following Web site:

https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/procurement/memo/service-contract-inv

entory-guidance.pdf.

(c) This subpart addresses requirements for obtaining information from, and reporting by, agency

service contractors.

4.1703 Reporting requirements.

(a) Thresholds.

(1) Except as exempted by OFPP guidance, service contractor reporting shall be required for

contracts and first-tier subcontracts for services based on type of contract and estimated total value.

For indefinite-delivery contracts, reporting shall be determined based on the type and estimated

total value of each order under the contract. Indefinite-delivery contracts include, but are not limited
to, contracts such as indefinite-delivery indefinite-quantity (IDIQ) contracts, Federal Supply

Schedule contracts (FSSs), Governmentwide acquisition contracts (GWACs), and multi-agency

contracts.

(2) Reporting is required according to the following thresholds:

(i) All cost-reimbursement, time-and-materials, and labor-hour service contracts and orders with an

estimated total value above the simplified acquisition threshold.

(ii) All fixed-price service contracts awarded and orders issued according to the following thresholds:

(A) Awarded or issued in Fiscal Year 2014, with an estimated total value of $2.5 million or greater.

(B) Awarded or issued in Fiscal Year 2015, with an estimated total value of $1 million or greater.

(C) Awarded or issued in Fiscal Year 2016, and subsequent years, with an estimated total value of

$500,000 or greater.

(3) Reporting is required for all first-tier subcontracts for services as prescribed in paragraphs

(a)(2)(i) and (ii) of this section.

(b) Agency reporting responsibilities.

(1) Agencies shall ensure that contractors comply with the reporting requirements of 52.204-14,

Service Contract Reporting Requirements and 52.204-15, Service Contract Reporting Requirements

for Indefinite-Delivery Contracts. Agencies shall review contractor reported information for

reasonableness and consistency with available contract information. The agency is not required to

address data for which the agency would not normally have supporting information. In the event the

agency believes that revisions to the contractor reported information are warranted, the agency

shall notify the contractor no later than November 15. By November 30, the contractor shall revise

the report, or document its rationale for the agency. Authorized agency officials may review the

reports at www.sam.gov.

(2) Agencies are required to compile annually an inventory of service contracts performed for, or on

behalf of, the agency during the prior fiscal year in order to determine the extent of the agency’s

reliance on service contractors. Agencies shall submit a service contract inventory to OMB by

January 15 annually. Then, each agency must post the inventory on its Web site and publish a

Federal Register Notice of Availability by February 15 annually.

(3) Most of the required information is already collected in the Federal Procurement Data System

(FPDS). Information not collected in FPDS will be provided by the contractor, as specified in

52.204-14, Service Contract Reporting Requirements and 52.204-15, Service Contract Reporting

Requirements for Indefinite-Delivery Contracts.

4.1704 Contracting officer responsibilities.

(a) For other than indefinite-delivery contracts, the contracting officer shall ensure that 52.204-14,

Service Reporting Requirement, is included in solicitations, contracts, and orders as prescribed at

4.1705. For indefinite-delivery contracts, the contracting officer who awarded the contract shall

ensure that 52.204-15 Service Contract Reporting Requirements for Indefinite-Delivery Contracts, is

included in solicitations and contracts as prescribed at 4.1705. The contracting officer at the order
level shall verify the clause’s inclusion in the contract.

(b) If the contractor fails to submit a report in a timely manner, the contracting officer shall exercise

appropriate contractual remedies. In addition, the contracting officer shall make the contractor’s

failure to comply with the reporting requirements a part of the contractor’s performance information

under subpart 42.15.

4.1705 Contract clauses.

(a) The contracting officer shall insert the clause at 52.204-14, Service Contract Reporting

Requirements, in solicitations and contracts for services (including construction) that meet or

exceed the thresholds at 4.1703, except for indefinite-delivery contracts. This clause is not required

for actions entirely funded by DoD, contracts awarded with a generic entity identifier, or in classified

solicitations, contracts, or orders.

(b) The contracting officer shall insert the clause at 52.204-15, Service Contract Reporting

Requirements for Indefinite-Delivery Contracts, in solicitations and indefinite-delivery contracts for

services (including construction) where one or more orders issued thereunder are expected to each

meet or exceed the thresholds at 4.1703. This clause is not required for actions entirely funded by

DoD, contracts awarded with a generic entity identifier, or in classified solicitations, contracts, or

orders.

Subpart 4.18 - Commercial and Government Entity Code

4.1800 Scope of subpart.

(a) This subpart prescribes policies and procedures for identification of commercial and government

entities. The Commercial and Government Entity (CAGE) code system may be used, among other

things, to–

(1) Exchange data with another contracting activity, including contract administration activities and

contract payment activities.

(2) Exchange data with another system that requires the unique identification of a contractor entity;

or

(3) Identify when offerors are owned or controlled by another entity.

(b) For information on the unique entity identifier, which is a different identifier, see 4.605 and the

provisions at 52.204-6, Unique Entity Identifier, and 52.204-7, System for Award Management.

4.1801 Definitions.

As used in this part–
Highest-level owner means the entity that owns or controls an immediate owner of the offeror, or

that owns or controls one or more entities that control an immediate owner of the offeror. No entity

owns or exercises control of the highest level owner.

Immediate owner means an entity, other than the offeror, that has direct control of the offeror.

Indicators of control include, but are not limited to, one or more of the following: ownership or

interlocking management, identity of interests among family members, shared facilities and

equipment, and the common use of employees.

4.1802 Policy.

(a) Commercial and Government Entity code.

(1) Offerors shall provide the contracting officer the CAGE code assigned to that offeror's location

prior to the award of a contract action above the micro-purchase threshold, when there is a

requirement to be registered in the System for Award Management (SAM) or a requirement to have

a unique entity identifier in the solicitation.

(2) The contracting officer shall include the contractor’s CAGE code in the contract and in any

electronic transmissions of the contract data to other systems when it is provided in accordance with

paragraph (a)(1) of this section.

(b) Ownership or control of offeror. Offerors, if owned or controlled by another entity, shall provide

the contracting officer with the CAGE code and legal name of that entity prior to the award of a

contract action above the micro-purchase threshold, when there is a requirement to be registered in

SAM or a requirement to have a unique entity identifier in the solicitation.

4.1803 Verifying CAGE codes prior to award.

(a) Contracting officers shall verify the offeror’s CAGE code by reviewing the entity’s registration in

the System for Award Management (SAM). Active registrations in SAM have had the associated

CAGE codes verified.

(b) For entities not required to be registered in SAM, the contracting officer shall validate the CAGE

code using the CAGE code search feature at https://cage.dla.mil.

4.1804 Solicitation provisions and contract clause.

(a) Insert the provision at 52.204-16, Commercial and Government Entity Code Reporting, in all

solicitations that include–

(1) 52.204-6, Unique Entity Identifier; or

(2) 52.204-7, System for Award Management.

(b) Insert the provision at 52.204-17, Ownership or Control of Offeror, in all solicitations that include

the provision at 52.204-16, Commercial and Government Entity Code Reporting.
(c) Insert the clause at 52.204-18, Commercial and Government Entity Code Maintenance, in all

solicitations and contracts when the solicitation contains the provision at 52.204-16, Commercial

and Government Entity Code Reporting.

(d) Insert the provision at 52.204-20, Predecessor of Offeror, in all solicitations that include the

provision at 52.204-16, Commercial and Government Entity Code Reporting.

Subpart 4.19 - Basic Safeguarding of Covered Contractor

Information Systems

4.1901 Definitions.

As used in this subpart–

Covered contractor information system means an information system that is owned or operated by a

contractor that processes, stores, or transmits Federal contract information.

Federal contract information means information, not intended for public release, that is provided by

or generated for the Government under a contract to develop or deliver a product or service to the

Government, but not including information provided by the Government to the public (such as that

on public Web sites) or simple transactional information, such as that necessary to process

payments.

Information means any communication or representation of knowledge such as facts, data, or

opinions in any medium or form, including textual, numerical, graphic, cartographic, narrative, or

audiovisual (Committee on National Security Systems Instruction (CNSSI) 4009).

Information system means a discrete set of information resources organized for the collection,

processing, maintenance, use, sharing, dissemination, or disposition of information (44 U.S.C. 3502).

Safeguarding means measures or controls that are prescribed to protect information systems.

4.1902 Applicability.

This subpart applies to all acquisitions, including acquisitions of commercial products or commercial

services other than commercially available off-the-shelf items, when a contractor's information

system may contain Federal contract information.

4.1903 Contract clause.

The contracting officer shall insert the clause at 52.204-21, Basic Safeguarding of Covered

Contractor Information Systems, in solicitations and contracts when the contractor or a

subcontractor at any tier may have Federal contract information residing in or transiting through its

information system.
Subpart 4.20 Prohibition on Contracting for Hardware,

Software, and Services Developed or Provided by Kaspersky

Lab

4.2001 Definitions.

As used in this subpart—

Kaspersky Lab covered article means any hardware, software, or service that–

(1) Is developed or provided by a Kaspersky Lab covered entity

(2) Includes any hardware, software, or service developed or provided in whole or in part by a

Kaspersky Lab covered entity; or

(3) Contains components using any hardware or software developed in whole or in part by a

Kaspersky Lab covered entity.

Kaspersky Lab covered entity means–

(1) Kaspersky Lab;

(2) Any successor entity to Kaspersky Lab, including any change in name, e.g., “Kaspersky”;

(3) Any entity that controls, is controlled by, or is under common control with Kaspersky Lab; or

(4) Any entity of which Kaspersky Lab has a majority ownership.

4.2002 Prohibition.

Section 1634 of Division A of the National Defense Authorization Act for Fiscal Year 2018 (Pub. L.

115-91) prohibits Government use on or after October 1, 2018, of any hardware, software, or

services developed or provided, in whole or in part, by a covered entity. Contractors are prohibited

from—

(a) Providing any Kaspersky Lab covered article that the Government will use on or after October 1,

2018; and

(b) Using any Kaspersky Lab covered article on or after October 1, 2018, in the development of data

or deliverables first produced in the performance of the contract.

4.2003 Notification.

When a contractor provides notification pursuant to 52.204-23, follow agency procedures.
4.2004 Contract clause.

The contracting officer shall insert the clause at 52.204-23, Prohibition on Contracting for

Hardware, Software, and Services Developed or Provided by Kaspersky Lab Covered Entities, in all

solicitations and contracts.

Subpart 4.21 Prohibition on Contracting for Certain

Telecommunications and Video Surveillance Services or

Equipment

4.2100 Scope of part.

This subpart implements paragraphs (a)(1)(A) and (a)(1)(B) of section 889 of the John S. McCain

National Defense Authorization Act for Fiscal Year 2019 (Pub. L. 115-232).

4.2101 Definitions.

As used in this subpart—

Backhaul means intermediate links between the core network, or backbone network, and the small

subnetworks at the edge of the network (e.g., connecting cell phones/towers to the core telephone

network). Backhaul can be wireless (e.g., microwave) or wired (e.g., fiber optic, coaxial cable,

Ethernet).

Covered foreign country means The People’s Republic of China.

Covered telecommunications equipment or services means–

(1) Telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation,

(or any subsidiary or affiliate of such entities);

(2) For the purpose of public safety, security of Government facilities, physical security surveillance

of critical infrastructure, and other national security purposes, video surveillance and

telecommunications equipment produced by Hytera Communications Corporation, Hangzhou

Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate

of such entities);

(3) Telecommunications or video surveillance services provided by such entities or using such

equipment; or

(4) Telecommunications or video surveillance equipment or services produced or provided by an

entity that the Secretary of Defense, in consultation with the Director of National Intelligence or the

Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or

controlled by, or otherwise connected to, the government of a covered foreign country.

Critical technology means–
(1) Defense articles or defense services included on the United States Munitions List set forth in the

International Traffic in Arms Regulations under subchapter M of chapter I of title 22, Code of

Federal Regulations;

(2) Items included on the Commerce Control List set forth in Supplement No. 1 to part 774 of the

Export Administration Regulations under subchapter C of chapter VII of title 15, Code of Federal

Regulations, and controlled-

(i) Pursuant to multilateral regimes, including for reasons relating to national security, chemical and

biological weapons proliferation, nuclear nonproliferation, or missile technology; or

(ii) For reasons relating to regional stability or surreptitious listening;

(3) Specially designed and prepared nuclear equipment, parts and components, materials, software,

and technology covered by part 810 of title 10, Code of Federal Regulations (relating to assistance to

foreign atomic energy activities);

(4) Nuclear facilities, equipment, and material covered by part 110 of title 10, Code of Federal

Regulations (relating to export and import of nuclear equipment and material);

(5) Select agents and toxins covered by part 331 of title 7, Code of Federal Regulations, part 121 of

title 9 of such Code, or part 73 of title 42 of such Code; or

(6) Emerging and foundational technologies controlled pursuant to section 1758 of the Export

Control Reform Act of 2018 (50 U.S.C. 4817).

Interconnection arrangements means arrangements governing the physical connection of two or

more networks to allow the use of another's network to hand off traffic where it is ultimately

delivered (e.g., connection of a customer of telephone provider A to a customer of telephone

company B) or sharing data and other information resources.

Reasonable inquiry means an inquiry designed to uncover any information in the entity's possession

about the identity of the producer or provider of covered telecommunications equipment or services

used by the entity that excludes the need to include an internal or third-party audit.

Roaming means cellular communications services (e.g., voice, video, data) received from a visited

network when unable to connect to the facilities of the home network either because signal coverage

is too weak or because traffic is too high.

Substantial or essential component means any component necessary for the proper function or

performance of a piece of equipment, system, or service.

4.2102 Prohibition.

(a) Prohibited equipment, systems, or services. 

(1) On or after August 13, 2019, agencies are prohibited from procuring or obtaining, or extending

or renewing a contract to procure or obtain, any equipment, system, or service that uses covered

telecommunications equipment or services as a substantial or essential component of any system, or

as critical technology as part of any system, unless an exception at paragraph (b) of this section

applies or the covered telecommunications equipment or services are covered by a waiver described
in 4.2104.

(2) On or after August 13, 2020, agencies are prohibited from entering into a contract, or extending

or renewing a contract, with an entity that uses any equipment, system, or service that uses covered

telecommunications equipment or services as a substantial or essential component of any system, or

as critical technology as part of any system, unless an exception at paragraph (b) of this section

applies or the covered telecommunications equipment or services are covered by a waiver described

in 4.2104. This prohibition applies to the use of covered telecommunications equipment or services,

regardless of whether that use is in performance of work under a Federal contract.

(b) Exceptions. This subpart does not prohibit agencies from procuring or contractors from

providing-

(1) A service that connects to the facilities of a third-party, such as backhaul, roaming, or

interconnection arrangements; or

(2) Telecommunications equipment that cannot route or redirect user data traffic or permit visibility

into any user data or packets that such equipment transmits or otherwise handles.

(c) Contracting Officers. Unless an exception at paragraph (b) of this section applies or the covered

telecommunications equipment or service is covered by a waiver described in 4.2104, Contracting

Officers shall not—

(1) Procure or obtain, or extend or renew a contract (e.g., exercise an option) to procure or obtain,

any equipment, system, or service that uses covered telecommunications equipment or services as a

substantial or essential component of any system, or as critical technology as part of any system; or

(2) Enter into a contract, or extend or renew a contract, with an entity that uses any equipment,

system, or service that uses covered telecommunications equipment or services as a substantial or

essential component of any system, or as critical technology as part of any system.

(d) Recording prohibitions in the System for Award Management (SAM).

(1) Prohibitions on purchases of products or services produced or provided by entities identified in

paragraphs (1) and (2) of the definition of "covered telecommunications equipment or services"

(including known subsidiaries or affiliates) at 4.2101 will be recorded in SAM (see 9.404).

(2) Prohibitions on purchases of products or services produced or provided by entities identified

pursuant to paragraph (4) of the definition of "covered telecommunications equipment or services"

(including known subsidiaries or affiliates) at 4.2101 are recorded by the Department of Defense in

SAM (see 9.404).

4.2103 Procedures.

(a) Representations.

(1)

(i) If the offeror selects "does not" in paragraphs (c)(1) and/or (c)(2) of the provision at 52.204-26 or

in paragraphs (v)(2)(i) and/or (v)(2)(ii) of the provision at 52.212-3, the contracting officer may rely

on the "does not" representation(s), unless the contracting officer has reason to question the
representation. If the contracting officer has a reason to question the representation, the contracting

officer shall follow agency procedures.

(ii) If the offeror selects "does" in paragraph (c)(1) of the provision at 52.204-26 or paragraph

(v)(2)(i) of the provision at 52.212-3, the offeror will be required to complete the representation in

paragraph (d)(1) of the provision at 52.204-24.

(iii) If the offeror selects "does" in paragraph (c)(2) of the provision at 52.204-26 or paragraph

(v)(2)(ii) of the provision at 52.212-3, the offeror will be required to complete the representation in

paragraph (d)(2) of the provision at 52.204-24.

(2)

(i) If the offeror selects "will not" in paragraph (d)(1) of the provision at 52.204-24 or "does not" in

paragraph (d)(2) of the provision at 52.204-24, the contracting officer may rely on the

representations, unless the contracting officer has reason to question the representations. If the

contracting officer has a reason to question the representations, the contracting officer shall follow

agency procedures.

(ii) If an offeror selects "will" in paragraph (d)(1) of the provision at 52.204-24, the offeror must

provide the information required by paragraph (e)(1) of the provision at 52.204-24, and the

contracting officer shall follow agency procedures.

(iii) If an offeror selects "does" in paragraph (d)(2) of the provision at 52.204-24, the offeror must

complete the disclosure at paragraph (e)(2) of the provision at 52.204-24, and the contracting officer

shall follow agency procedures.

(b) Reporting. If a contractor provides a report pursuant to paragraph (d) of the clause at 52.204-25,

Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or

Equipment, follow agency procedures.

4.2104 Waivers.

(a) Executive agencies. The head of an executive agency may, on a one-time basis, waive the

prohibition at 4.2102(a) with respect to a Government entity (e.g., requirements office, contracting

office) that requests such a waiver.

(1) Waiver. The waiver may be provided, for a period not to extend beyond August 13, 2021 for the

prohibition at 4.2102(a)(1), or beyond August 13, 2022 for the prohibition at 4.2102(a)(2), if the

Government official, on behalf of the entity, seeking the waiver submits to the head of the executive

agency–

(i) A compelling justification for the additional time to implement the requirements under 4.2102(a),

as determined by the head of the executive agency; and

(ii) A full and complete laydown or description of the presences of covered telecommunications or

video surveillance equipment or services in the relevant supply chain and a phase-out plan to

eliminate such covered telecommunications or video surveillance equipment or services from the

relevant systems.

(2) Executive agency waiver requirements for the prohibition at 4.2102(a)(2). Before the head of an
executive agency can grant a waiver to the prohibition at 4.2102(a)(2), the agency must—

(i) Have designated a senior agency official for supply chain risk management, responsible for

ensuring the agency effectively carries out the supply chain risk management functions and

responsibilities described in law, regulation, and policy;

(ii) Establish participation in an information-sharing environment when and as required by the

Federal Acquisition Security Council (FASC) to facilitate interagency sharing of relevant acquisition

supply chain risk information;

(iii) Notify and consult with the Office of the Director of National Intelligence (ODNI) on the waiver

request using ODNI guidance, briefings, best practices, or direct inquiry, as appropriate; and

(iv) Notify the ODNI and the FASC 15 days prior to granting the waiver that it intends to grant the

waiver.

(3) Waivers for emergency acquisitions.

(i) In the case of an emergency, including a declaration of major disaster, in which prior notice and

consultation with the ODNI and prior notice to the FASC is impracticable and would severely

jeopardize performance of mission-critical functions, the head of an agency may grant a waiver

without meeting the notice and consultation requirements under 4.2104(a)(2)(iii) and

4.2104(a)(2)(iv) to enable effective mission critical functions or emergency response and recovery.

(ii) In the case of a waiver granted in response to an emergency, the head of an agency granting the

waiver must—

(A) Make a determination that the notice and consultation requirements are impracticable due to an

emergency condition; and

(B) Within 30 days of award, notify the ODNI and the FASC of the waiver issued under emergency

conditions in addition to the waiver notice to Congress under 4.2104(a)(4).

(4) Waiver notice.

(i) For waivers to the prohibition at 4.2102(a)(1), the head of the executive agency shall, not later

than 30 days after approval—

(A) Submit in accordance with agency procedures to the appropriate congressional committees the

full and complete laydown of the presences of covered telecommunications or video surveillance

equipment or services in the relevant supply chain; and

(B) The phase-out plan to eliminate such covered telecommunications or video surveillance

equipment or services from the relevant systems.

(ii) For waivers to the prohibition at 4.2102(a)(2), the head of the executive agency shall, not later

than 30 days after approval submit in accordance with agency procedures to the appropriate

congressional committees—

(A) An attestation by the agency that granting of the waiver would not, to the agency's knowledge

having conducted the necessary due diligence as directed by statute and regulation, present a

material increase in risk to U.S. national security;
(B) The full and complete laydown of the presences of covered telecommunications or video

surveillance equipment or services in the relevant supply chain, to include a description of each

category of covered technology equipment or services discovered after a reasonable inquiry, as well

as each category of equipment, system, or service used by the entity in which such covered

technology is found after conducting a reasonable inquiry; and

(C) The phase-out plan to eliminate such covered telecommunications or video surveillance

equipment or services from the relevant systems.

(b) Director of National Intelligence. The Director of National Intelligence may provide a waiver if

the Director determines the waiver is in the national security interests of the United States.

4.2105 Solicitation provisions and contract clause.

(a) The contracting officer shall insert the provision at 52.204-24, Representation Regarding Certain

Telecommunications and Video Surveillance Services or Equipment–

(1) In all solicitations for contracts; and

(2) Under indefinite delivery contracts, in all notices of intent to place an order, or solicitations for

an order (e.g., subpart 8.4 and 16.505).

(b) The contracting officer shall insert the clause at 52.204-25, Prohibition on Contracting for

Certain Telecommunications and Video Surveillance Services or Equipment, in all solicitations and

contracts.

(c) The contracting officer shall insert the provision at 52.204-26, Covered Telecommunications

Equipment or Services-Representation, in all solicitations.

Subpart 4.22 Prohibition on a ByteDance Covered

Application.

4.2201 Definitions.

As used in this subpart—

Covered application means the social networking service TikTok or any successor application or

service developed or provided by ByteDance Limited or an entity owned by ByteDance Limited.

Information technology, as defined in 40 U.S.C. 11101(6)—

(1)Means any equipment or interconnected system or subsystem of equipment, used in the

automatic acquisition, storage, analysis, evaluation, manipulation, management, movement, control,

display, switching, interchange, transmission, or reception of data or information by the executive

agency, if the equipment is used by the executive agency directly or is used by a contractor under a

contract with the executive agency that requires the use—

(i)Of that equipment; or
(ii)Of that equipment to a significant extent in the performance of a service or the furnishing of a

product;

(2)Includes computers, ancillary equipment (including imaging peripherals, input, output, and

storage devices necessary for security and surveillance), peripheral equipment designed to be

controlled by the central processing unit of a computer, software, firmware and similar procedures,

services (including support services), and related resources; but

(3)Does not include any equipment acquired by a Federal contractor incidental to a Federal

contract.

4.2202 Prohibition.

(a) Section 102 of Division R of the Consolidated Appropriations Act, 2023 (Pub. L. 117-328), the No

TikTok on Government Devices Act, and its implementing guidance under Office of Management and

Budget (OMB) Memorandum M-23-13, dated February 27, 2023, “No TikTok on Government

Devices” Implementation Guidance, collectively prohibit the presence or use of a covered application

on information technology, including certain equipment used by Federal contractors.

(b) This prohibition applies to the presence or use of a covered application on any information

technology owned or managed by the Government, or on any information technology used or

provided by the contractor under a contract, including equipment provided by the contractor’s

employees, unless an exception is granted in accordance with OMB Memorandum M-23-13.

4.2203 Contract clause.

The contracting officer shall insert the clause at 52.204-27, Prohibition on a ByteDance Covered

Application, in all solicitations and contracts, unless an exception is granted in accordance with

OMB Memorandum M-23-13.

Subpart 4.23 Federal Acquisition Security Council.

4.2300 Scope of subpart.

This subpart implements the Federal Acquisition Supply Chain Security Act of 2018 (title II of Pub.

L. 115–390) and the Federal Acquisition Security Council (FASC) regulation at 41 CFR part 201–1.

The authority provided in this subpart expires on December 31, 2033 (see 41 U.S.C. 1328).

4.2301 Definitions.

As used in this subpart—

Covered article as defined in 41 U.S.C. 4713(k), means—

(1) Information technology, as defined in 40 U.S.C. 11101, including cloud computing services of all
types;

(2) Telecommunications equipment or telecommunications service, as those terms are defined in

section 3 of the Communications Act of 1934 (47 U.S.C. 153);

(3) The processing of information on a Federal or non-Federal information system, subject to the

requirements of the Controlled Unclassified Information program (see 32 CFR part 2002); or

(4) Hardware, systems, devices, software, or services that include embedded or incidental

information technology.

FASCSA order means any of the following orders issued under the Federal Acquisition Supply Chain

Security Act (FASCSA) requiring the removal of covered articles from executive agency information

systems or the exclusion of one or more named sources or named covered articles from executive

agency procurement actions, as described in 41 CFR 201–1.303(d) and (e):

(1) The Secretary of Homeland Security may issue FASCSA orders applicable to civilian agencies, to

the extent not covered by paragraph (2) or (3) of this definition. This type of FASCSA order may be

referred to as a Department of Homeland Security (DHS) FASCSA order.

(2) The Secretary of Defense may issue FASCSA orders applicable to the Department of Defense

(DoD) and national security systems other than sensitive compartmented information systems. This

type of FASCSA order may be referred to as a DoD FASCSA order.

(3) The Director of National Intelligence (DNI) may issue FASCSA orders applicable to the

intelligence community and sensitive compartmented information systems, to the extent not covered

by paragraph (2) of this definition. This type of FASCSA order may be referred to as a DNI FASCSA

order.

Federal Acquisition Security Council (FASC) means the Council established pursuant to 41 U.S.C.

1322(a).

Intelligence community, as defined by 50 U.S.C. 3003(4), means the following—

(1) The Office of the Director of National Intelligence;

(2) The Central Intelligence Agency;

(3) The National Security Agency;

(4) The Defense Intelligence Agency;

(5) The National Geospatial-Intelligence Agency;

(6) The National Reconnaissance Office;

(7) Other offices within the Department of Defense for the collection of specialized national

intelligence through reconnaissance programs;

(8) The intelligence elements of the Army, the Navy, the Air Force, the Marine Corps, the Coast

Guard, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the

Department of Energy;

(9) The Bureau of Intelligence and Research of the Department of State;
(10) The Office of Intelligence and Analysis of the Department of the Treasury;

(11) The Office of Intelligence and Analysis of the Department of Homeland Security; or

(12) Such other elements of any department or agency as may be designated by the President, or

designated jointly by the Director of National Intelligence and the head of the department or agency

concerned, as an element of the intelligence community.

National security system, as defined in 44 U.S.C. 3552, means any information system (including any

telecommunications system) used or operated by an agency or by a contractor of an agency, or other

organization on behalf of an agency—

(1) The function, operation, or use of which involves intelligence activities; involves cryptologic

activities related to national security; involves command and control of military forces; involves

equipment that is an integral part of a weapon or weapons system; or is critical to the direct

fulfillment of military or intelligence missions, but does not include a system that is to be used for

routine administrative and business applications (including payroll, finance, logistics, and personnel

management applications); or

(2) Is protected at all times by procedures established for information that have been specifically

authorized under criteria established by an Executive order or an Act of Congress to be kept

classified in the interest of national defense or foreign policy.

Reasonable inquiry means an inquiry designed to uncover any information in the entity's possession

about the identity of any covered articles, or any products or services produced or provided by a

source. This applies when the covered article or the source is subject to an applicable FASCSA

order. A reasonable inquiry excludes the need to include an internal or third-party audit.

Sensitive compartmented information means classified information concerning or derived from

intelligence sources, methods, or analytical processes, which is required to be handled within formal

access control systems established by the Director of National Intelligence.

Sensitive compartmented information system means a national security system authorized to

process or store sensitive compartmented information.

Source means a non-Federal supplier, or potential supplier, of products or services, at any tier.

Supply chain risk, as defined in 41 U.S.C. 4713(k), means the risk that any person may sabotage,

maliciously introduce unwanted functionality, extract data, or otherwise manipulate the design,

integrity, manufacturing, production, distribution, installation, operation, maintenance, disposition,

or retirement of covered articles so as to surveil, deny, disrupt, or otherwise manipulate the

function, use, or operation of the covered articles or information stored or transmitted on the

covered articles.

Supply chain risk information includes, but is not limited to, information that describes or identifies:

(1) Functionality and features of covered articles, including access to data and information system

privileges;

(2) The user environment where a covered article is used or installed;

(3) The ability of a source to produce and deliver covered articles as expected;
(4) Foreign control of, or influence over, a source or covered article ( e.g., foreign ownership,

personal and professional ties between a source and any foreign entity, legal regime of any foreign

country in which a source is headquartered or conducts operations);

(5) Implications to government mission(s) or assets, national security, homeland security, or critical

functions associated with use of a covered source or covered article;

(6) Vulnerability of Federal systems, programs, or facilities;

(7) Market alternatives to the covered source;

(8) Potential impact or harm caused by the possible loss, damage, or compromise of a product,

material, or service to an organization's operations or mission; and

(9) Likelihood of a potential impact or harm, or the exploitability of a system;

(10) Security, authenticity, and integrity of covered articles and their supply and compilation chain;

(11) Capacity to mitigate risks identified;

(12) Factors that may reflect upon the reliability of other supply chain risk information; and

(13) Any other considerations that would factor into an analysis of the security, integrity, resilience,

quality, trustworthiness, or authenticity of covered articles or sources.

4.2302 Sharing supply chain risk information.

(a) Executive agencies are required to share relevant supply chain risk information with the FASC if

the executive agency has determined there is a reasonable basis to conclude a substantial supply

chain risk associated with a source or covered article exists (see 41 CFR 201–1.201).

(b) In support of information sharing described in paragraph (a) of this section, the contracting

officer shall work with the program office or requiring activity in accordance with agency

procedures regarding the sharing of relevant information on actual or potential supply chain risk

determined to exist during the procurement process.

4.2303 FASCSA orders.

(a) Executive agencies are prohibited from procuring or obtaining, or extending or renewing a

contract to procure or obtain, any covered article, or any products or services produced or provided

by a source, including contractor use of covered articles or sources, if that prohibition is established

by an applicable FASCSA order issued by the Director of National Intelligence, Secretary of Defense,

or Secretary of Homeland Security (the “issuing official”)(see 41 CFR 201–1.304(a)).

(b) If a covered article or the source is subject to an applicable Governmentwide FASCSA order

issued collectively by the Director of National Intelligence, Secretary of Defense, and Secretary of

Homeland Security, executive agencies responsible for management of the Federal Supply

Schedules, Governmentwide acquisition contracts, and multi-agency contracts shall facilitate

implementation of a collective FASCSA order by removing the covered articles or sources identified

in the FASCSA order from such contracts (see 41 CFR 201–1.303(g)).
(c)

(1) FASCSA orders regarding sources or covered articles will be found in the System for Award

Management (SAM), by searching for the phrase “FASCSA order”. SAM may be updated as new

FASCSA orders are issued.

(2) Some FASCSA orders will not be identified in SAM and will need to be identified in the

solicitation to be effective for that acquisition. The requiring activity or program office will identify

these FASCSA orders to the contracting officer (see 4.2304(d)).

(3) The contracting officer shall work with the program office or requiring activity to identify which

FASCSA orders apply to the acquisition.

4.2304 Procedures.

(a) Identifying applicable FASCSA orders. The applicability of FASCSA orders to a particular

acquisition depends on the contracting office's agency, the scope of the FASCSA order, the funding,

and whether the requirement involves certain types of information systems (see the definition of

FASCSA order at 4.2301). The contracting officer shall coordinate with the program office or

requiring activity to identify the FASCSA order(s) that apply to the acquisition as follows:

(1) Unless the program office or requiring activity instructs the contracting officer otherwise,

FASCSA orders apply as follows: contracts awarded by civilian agencies will be subject to DHS

FASCSA orders, and contracts awarded by the Department of Defense will be subject to DoD

FASCSA orders. See paragraph (b) of 52.204-30, Federal Acquisition Supply Chain Security Act

Orders-Prohibition.

(2) For acquisitions where the program office or the requiring activity instructs the contracting

officer to select specific FASCSA orders, the contracting officer must select “yes” or “no” for each

applicable type of FASCSA order ( i.e., “DHS FASCSA Order” “DoD FASCSA Order” or “DNI

FASCSA Order”). See paragraph (b)(1) of 52.204-30, Federal Acquisition Supply Chain Security Act

Orders—Prohibition, with its Alternate I.

(b) Federal Supply Schedules, Governmentwide acquisition contracts, multi-agency contracts

specific procedures—

(1) Applying FASCSA orders. An agency awarding this type of contract may choose to apply FASCSA

orders in accordance with agency policy as follows:

(i) Application at the contract level. The agency awarding the basic contract may choose to apply

FASCSA orders to the basic contract award. This is the preferred method, especially if small value

orders or orders without a request for quotation (RFQ) are expected. Ordering activity contracting

officers may use this contract vehicle without taking further steps to identify applicable FASCSA

orders in the order. The contracting officer awarding the basic contract would select “yes” for all

FASCSA orders ( i.e., “DHS FASCSA Order” “DoD FASCSA Order” and “DNI FASCSA Order”) (see

paragraph (b)(1) of 52.204-30, Federal Acquisition Supply Chain Security Act Orders—Prohibition,

with its Alternate I). If the contracting officer becomes aware of a newly issued applicable FASCSA

order, then the agency awarding the basic contract shall modify the basic contract to remove any

covered article, or any products or services produced or provided by a source, prohibited by the

newly issued FASCSA order.
(ii) Application at the order level. The agency awarding the basic contract may choose to apply

FASCSA orders at the order level, as implemented by the ordering activity contracting officer.

(2) Collective FASCSA orders. If a new FASCSA order is issued collectively by the Secretary of

Homeland Security, Secretary of Defense, and Director of National Intelligence, then the contracting

officer shall modify the basic contract based upon the requirements of the order, removing any

covered article, or any products or services produced or provided by a source (see 4.2303(b)).

(3) Interagency acquisitions. For an interagency acquisition (see subpart 17.5) where the funding

agency differs from the awarding agency, the funding agency shall determine the applicable

FASCSA orders.

(4) Inconsistencies. If any inconsistency is identified between the basic contract and the order, then

the FASCSA orders identified in the order will take precedence.

(c) Updating the solicitation or contract for new FASCSA orders. The contracting officer shall update

a solicitation or contract if the program office or requiring activity determines it is necessary to:

(1) Amend the solicitation to incorporate FASCSA orders in effect after the date the solicitation was

issued but prior to contract award; or

(2) Modify the contract to incorporate FASCSA orders issued after the date of contract award.

(i) Any such modification should take place within a reasonable amount of time, but no later than 6

months from the determination of the program office or requiring activity.

(ii) If the contract is not modified within the time specified in paragraph (c)(2)(i) of this section, then

the contract file shall be documented providing rationale why the contract could not be modified

within this timeframe.

(d) Agency specific procedures. The contracting officer shall follow agency procedures for

implementing FASCSA orders not identified in SAM (see 4.2303(c)(2)).

(e) Disclosures. If an offeror provides a disclosure pursuant to paragraph (e) of 52.204-29, Federal

Acquisition Supply Chain Security Act Orders—Representation and Disclosures, the contracting

officer shall engage with the program office or requiring activity to determine whether to pursue a

waiver, if available, in accordance with 4.2305 and agency procedures or not award to that offeror.

For FASCSA orders handled at the order level, the disclosures language is found at paragraph (b)(5)

of 52.204-30, Federal Acquisition Supply Chain Security Act Orders—Prohibition, with its Alternate

II.

(f) Waiver. An acquisition may be either fully or partially covered by a waiver. Partial waiver

coverage occurs when only portions of the products or services being procured or provided by a

source are covered by an applicable waiver. If the requiring activity notifies the contracting officer

that the acquisition is partially covered by an approved individual waiver or class waiver under

4.2305, then the contracting officer shall work with the program office or requiring activity to

identify in the solicitation, RFQ, or order, the covered articles or services produced by or provided

by a source that are subject to the waiver (see 41 CFR 201–1.304(b)).

(g) Reporting. If a contractor provides a report pursuant to paragraph (c) of 52.204-30, Federal

Acquisition Supply Chain Security Act Orders—Prohibition, the contracting officer shall engage with

the agency supply chain risk management program in accordance with agency procedures.
4.2305 Waivers.

(a) An executive agency required to comply with a FASCSA order may submit a request that the

order or some of its provisions not apply to—

(1) The agency;

(2) Specific actions of the agency or a specific class of acquisitions;

(3) Actions of the agency for a period of time before compliance with the order is practicable; or

(4) Other activities, as appropriate, that the requesting agency identifies.

(b) A request for waiver shall be submitted by the executive agency in writing to the official that

issued the order, unless other instructions for submission are provided by the applicable FASCSA

order.

(c) The request for waiver shall provide the following information for the issuing official to review

and evaluate the request, including—

(1) Identification of the applicable FASCSA order;

(2) A description of the exception sought, including, if limited to only a portion of the order, a

description of the order provisions from which an exception is sought;

(3) The name or a description sufficient to identify the covered article or the product or service

provided by a source that is subject to the order from which an exception is sought;

(4) Compelling justification for why an exception should be granted, such as the impact of the order

on the agency's ability to fulfill its mission-critical functions, or considerations related to the national

interest, including national security reviews, national security investigations, or national security

agreements;

(5) Any alternative mitigations to be undertaken to reduce the risks addressed by the FASCSA order;

and

(6) Any other information requested by the issuing official.

(d) The contracting officer, in accordance with agency procedures and working with the program

office or requiring activity, shall decide whether to pursue a waiver or to make award to an offeror

that does not require a waiver in accordance with the procedures at 4.2304(f). If a waiver is being

pursued, then the contracting officer may not make an award until written approval is obtained that

the waiver has been granted.

4.2306 Solicitation provision and contract clauses.

(a) In all Federal Supply Schedules, Governmentwide acquisition contracts, and multi-agency

contracts where FASCSA orders are applied at the order level, the contracting officer shall insert

the clause at 52.204-28, Federal Acquisition Supply Chain Security Act Orders—Federal Supply

Schedules, Governmentwide Acquisition Contracts, and Multi-Agency Contracts, in the basic

contract solicitation and resultant contract (see 4.2304(b)(1)(ii)).
(b) The contracting officer shall insert the provision at 52.204-29, Federal Acquisition Supply Chain

Security Act Orders—Representation and Disclosures—

(1) In all solicitations, except for Federal Supply Schedules, Governmentwide acquisition contracts,

and multi-agency contracts.

(2) In all solicitations for Federal Supply Schedules, Governmentwide acquisition contracts, and

multi-agency contracts, if FASCSA orders are applied at the contract level (see 4.2304(b)(1)(i)).

(c) The contracting officer shall insert the clause at 52.204-30, Federal Acquisition Supply Chain

Security Act Orders—Prohibition—

(1) In solicitations and contracts if the conditions specified at 4.2304(a)(1) apply, except for Federal

Supply Schedules, Governmentwide acquisition contracts, and multi-agency contracts. For

acquisitions where conditions specified at 4.2304(a)(2) apply, then the contracting officer shall use

the clause with its Alternate I.

(2) In Federal Supply Schedules, Governmentwide acquisition contracts, and multi-agency

contracts—

(i) Where FASCSA orders are applied at the contract level, with its Alternate I in all solicitations and

resultant contracts. See 4.2304(b)(1)(i).

(ii) Where FASCSA orders are applied at the order level, with its Alternate II in all RFQs, or in all

notices of intent to place an order. See 4.2304(b)(1)(ii).