13234 Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Proposed Rules 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 4, 12, and 52 

[FAR Case 2006–029; Docket No. 2007–

0001; Sequence 5] 

RIN 9000–AK72 

Federal Acquisition Regulation; FAR 

Case 2006–029, Federal Funding 

Accountability and Transparency Act 

(FFATA)—Reporting Requirement of 

Subcontractor Award Data 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Proposed rule. 

SUMMARY: The Civilian Agency 

Acquisition Council and the Defense 

Acquisition Regulations Council 

(Councils) are proposing to amend the 

Federal Acquisition Regulation (FAR) to 

require that contractors report specific 

subcontract awards to a public database. 

The Federal Funding Accountability 

and Transparency Act of 2006 (FFATA) 

(Pub. L. 109–282) requires the existence 

and operation of a searchable website 

that provides public access to 

information about Federal expenditures. 

The FFATA specifically requires that a 

pilot program be established to test the 

collection and accession of subcontract 

award data. As a result, subcontracts 

awarded and funded with Federal 

appropriated funds will be disclosed to 

the public in a single searchable 

website. 

DATES: Interested parties should submit 

written comments to the FAR 

Secretariat on or before May 21, 2007 to 

be considered in the formulation of a 

final rule. 

ADDRESSES: Submit comments 

identified by FAR case 2006–029 by any 

of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Search for any 

document by first selecting the proper 

document types and selecting ‘‘Federal 

Acquisition Regulation’’ as the agency 

of choice. At the ‘‘Keyword’’ prompt, 

type in the FAR case number (for 

example, FAR Case 2006–001) and click 

on the ‘‘Submit’’ button. Please include 

any personal and/or business 

information inside the document. You 

may also search for any document by 

clicking on the ‘‘Advanced search/ 

document search’’ tab at the top of the 

screen, selecting from the agency field 

‘‘Federal Acquisition Regulation’’, and 

typing the FAR case number in the 

keyword field. Select the ‘‘Submit’’

button. 

• Fax: 202–501–4067. 

• Mail: General Services 

Administration, Regulatory Secretariat 

(VIR), 1800 F Street, NW, Room 4035, 

ATTN: Laurieann Duarte, Washington, 

DC 20405. 

Instructions: Please submit comments 

only and cite FAR case 2006–029 in all 

correspondence related to this case. All 

comments received will be posted 

without change to http:// 

www.regulations.gov, including any 

personal and/or business confidential 

information provided. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Ernest Woodson, Procurement Analyst, 

at (202) 501–3775 for clarification of 

content. For information pertaining to 

status or publication schedules, contact 

the FAR Secretariat at (202) 501–4755. 

Please cite FAR case 2006–029. 

SUPPLEMENTARY INFORMATION: 

A. Background 

The FFATA requires the existence 

and operation of a searchable website 

that provides public access to 

information about Federal expenditures. 

Section 2(d) of the FFATA requires that 

a pilot program be established to test the 

collection and accession of subcontract 

award data. 

In order to implement Section 2(d) of 

the FFATA, the Councils propose to add 

a new subpart to FAR Part 4, with an 

associated clause in FAR Part 52, which 

addresses reporting subcontract awards. 

The pilot program will begin no later 

than July 1, 2007 and will terminate no 

later than January 1, 2009. 

This rule applies to contracts with 

values equal to or greater than 

$500,000,000 awarded and performed in 

the United States, and requires the 

awardees to report all first tier 

subcontract awards exceeding 

$1,000,000 to the FFATA database at 

www.federalspending.gov. The Councils 

chose these thresholds to ensure that a 

sufficient number of subcontract award 

reports will be entered in the database 

to permit assessment of its effectiveness 

without imposing a significant burden 

on contractors during the pilot program. 

The Government does not guarantee the 

reliability of the data reported. The 

Government has no mechanism to verify 

the data submitted. Before completion 

of the pilot program, the Councils will 

initiate a separate rulemaking process to 

establish the requirements for the final 

subcontract reporting database pursuant 

to the statute. The Councils anticipate 

that the final reporting requirement will 

apply to contracts with values equal to 

or greater than the simplified 

acquisition threshold and will require 

the reporting of subcontracts with 

values greater than $25,000, regardless 

of the award or performance locations of 

the prime contract or subcontracts. This 

rule does not apply to classified 

contracts or commercial item contracts 

issued under FAR Part 12. FFATA did 

not explicitly apply its provisions to 

commercial items, and the statute will 

be added to the list of laws inapplicable 

to commercial contracts at 12.503(a), 

under 41 U.S.C. 430. 

The Councils specifically invite 

comments on the following—

(a) The pilot program—

(1) The burden imposed; 

(2) Whether making this information 

publicly available will affect the 

contractor’s competitiveness; and 

(3) Whether availability of this 

information on a public website raises 

industrial, national or other security 

concerns. 

(b) Possible final reporting 

requirements—

(1) Whether the final reporting 

requirements (after the pilot program) 

should apply to contracts and 

subcontracts; 

(i) Awarded or performed outside the 

United States; 

(ii) With values greater than $25,000; 

and 

(iii) Awards below the first tier. 

(2) Whether the reporting period 

should be 30 days after award of a 

subcontract as expressed in the statute 

or a longer period; and 

(3) Whether the unique subcontractor 

identifier should be the DUNS number, 

the Taxpayer Identification Number 

(TIN) some other number, or a nonnumerical unique identifier. 

This is not a significant regulatory 

action and, therefore, was not subject to 

review under Section 6(b) of Executive 

Order 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

rule is not a major rule under 5 U.S.C. 

804. 

B. Regulatory Flexibility Act 

The Councils do not expect this 

proposed rule to have a significant 

economic impact on a substantial 

number of small entities within the 

meaning of the Regulatory Flexibility 

Act, 5 U.S.C. 601, et seq., because the 

contract dollar threshold chosen for 

application of the pilot program 

($500,000,000) ensures that any small 

businesses receiving such large prime 

contract awards are estimated to be 

minuscule to none. An Initial 

Regulatory Flexibility Analysis has, 


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Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Proposed Rules 13235 

therefore, not been performed. We invite 

comments from small businesses and 

other interested parties. The Councils 

will consider comments from small 

entities concerning the affected FAR 

Parts 4, 12, and 52 in accordance with 

5 U.S.C. 610. Interested parties must 

submit such comments separately and 

should cite 5 U.S.C. 601, et seq. (FAR 

case 2006–029), in correspondence. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act (Pub. 

L. 104–13) applies because the proposed 

rule contains information collection 

requirements. Accordingly, the FAR 

Secretariat will submit a request for 

approval of a new information 

collection requirement concerning OMB 

Control Number 9000–00XX, FFATA—

Reporting Requirement of Subcontractor 

Award Data to the Office of 

Management and Budget under 44 

U.S.C. 3501, et seq. 

Annual Reporting Burden: 

Public reporting burden for this 

collection of information is estimated to 

average 1 hour per response, including 

the time for reviewing instructions, 

searching existing data sources, 

gathering and maintaining the data 

needed, and completing and reviewing 

the collection of information. 

The annual reporting burden is 

estimated as follows: 

Respondents: 143 

Responses per respondent: 28 

Total annual responses: 4,004 

Preparation hours per response: 1 

Total response burden hours: 4,004. 

D. Request for Comments Regarding 

Paperwork Burden 

Submit comments, including 

suggestions for reducing this burden, 

not later than May 21, 2007 to: FAR 

Desk Officer, OMB, Room 10102, NEOB, 

Washington, DC 20503, and a copy to 

the General Services Administration, 

FAR Secretariat (VIR), 1800 F Street, 

NW, Room 4035, Washington, DC 

20405. 

Public comments are particularly 

invited on: whether this collection of 

information is necessary for the proper 

performance of functions of the FAR, 

and will have practical utility; whether 

our estimate of the public burden of this 

collection of information is accurate, 

and based on valid assumptions and 

methodology; ways to enhance the 

quality, utility, and clarity of the 

information to be collected; and ways in 

which we can minimize the burden of 

the collection of information on those 

who are to respond, through the use of 

appropriate technological collection 

techniques or other forms of information 

technology. 

Requester may obtain a copy of the 

justification from the General Services 

Administration, FAR Secretariat (VIR), 

Room 4035, Washington, DC 20405, 

telephone (202) 501–4755. Please cite 

OMB Control Number 9000–00XX, 

FFATA—Reporting Requirement of 

Subcontractor Award Data, in all 

correspondence. 

List of Subjects in 48 CFR Parts 4, 12, 

and 52 

Government procurement. 

Dated: March 13, 2007. 

Al Matera 

Acting Director, Contract Policy Division. 

Therefore, DoD, GSA, and NASA 

propose amending 48 CFR parts 4, 12, 

and 52 as set forth below: 

1. The authority citation for 48 CFR 

parts 4, 12, and 52 continues to read as 

follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 42 U.S.C. 2473(c). 

PART 4—ADMINISTRATIVE MATTERS 

2. Add Subpart 4.14 to read as 

follows: 

Subpart 4.14—Reporting Subcontract 

Awards 

4.1400 Scope of subpart. 

This subpart implements Section 2(d) 

of the Federal Funding Accountability 

and Transparency Act of 2006 (Pub. L. 

109–282) by establishing a pilot 

program for a single searchable website, 

available to the public at no charge, that 

includes information on Federal 

subcontracts. This pilot program will 

expire not later than January 1, 2009. 

4.1401 Contract clause. 

(a) Except as provided in paragraph 

(b) of this section, insert the clause at 

52.204–10, Reporting Subcontract 

Awards, in all solicitations and 

contracts with values of $500,000,000 or 

more when the contract will be awarded 

and performed in the United States. 

(b) The clause is not required in—

(1) Solicitations and contracts for 

commercial items issued under FAR 

Part 12; or 

(2) Classified solicitations and 

contracts. 

PART 12—ACQUISITION OF 

COMMERCIAL ITEMS 

3. Amend section 12.503 by adding 

paragraph (a)(7) to read as follows: 

12.503 Applicability of certain laws to 

Executive agency contracts for the 

acquisition of commercial services. 

(a) * * * 

(7) 31 U.S.C. 6101 Note, P. L. 109–282 

Federal Funding Accountability and 

Transparency Act of 2006, requirement 

to report subcontract data. 

* * * * * 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

4. Add section 52.204–10 to read as 

follows: 

52.204–10 Reporting Subcontract Awards. 

As prescribed in 4.1401(a), insert the 

following clause: 

REPORTING SUBCONTRACT AWARDS 

(DATE) 

(a) Definition. Subcontract, as used in 

this clause, means any contract as defined in 

FAR Subpart 2.1 entered into by the 

Contractor to furnish supplies or services for 

performance of this contract. It includes, but 

is not limited to, purchase orders and 

changes and modifications to purchase 

orders, but does not include contracts that 

provide supplies or services benefiting two or 

more contracts. 

(b) Section 2(d) of the Federal Funding 

Accountability and Transparency Act of 2006 

(Pub. L. No. 109–282) requires establishment 

of a pilot program for a single searchable 

website, available to the public at no charge, 

that includes information on Federal 

subcontracts. 

(c) Within thirty days after the end of 

March, June, September, and December of 

each year through 2008, the Contractor shall 

report the following information at 

www.federalspending.gov for each 

subcontract award with a value greater than 

$1,000,000 made during that quarter. The 

Contractor shall follow the instructions at 

www.federalspending.govto report the data: 

(1) Name of the subcontractor. 

(2) Amount of the award. 

(3) Date of award. 

(4) The applicable North American 

Industry Classification System code. 

(5) Funding agency or agencies. 

(6) Award title descriptive of the purpose 

of the action. 

(7) Contract number. 

(8) Subcontractor location including 

address. 

(9) Subcontract primary performance 

location including address. 

(10) Unique identifier for the 

subcontractor. 

(End of clause) 

[FR Doc. 07–1318 Filed 3–20–07; 8:45 am] 

BILLING CODE 6820–EP–S 


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