Subpart 4.17 - Service Contracts Inventory

Parent topic: Part 4 - Administrative and Information Matters

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.