51306 Federal Register / Vol. 72, No. 172 / Thursday, September 6, 2007 / Rules and Regulations 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Chapter 1 

[Docket FAR—2007–002, Sequence 5] 

Federal Acquisition Regulation; 

Federal Acquisition Circular 2005–20; 

Introduction 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Summary presentation of final 

rule. 

SUMMARY: This document summarizes 

the Federal Acquisition Regulation 

(FAR) rule agreed to by the Civilian 

Agency Acquisition Council and the 

Defense Acquisition Regulations 

Council in this Federal Acquisition 

Circular (FAC) 2005–20 as a pilot 

program. A companion document, the 

Small Entity Compliance Guide (SECG), 

follows this FAC. The FAC, including 

the SECG, is available via the Internet at 

http://www.regulations.gov/. 

DATES: For effective dates and comment 

dates, see the document following this 

notice. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact the 

analyst whose name appears in the table 

below in relation to the FAR case. 

Please cite FAC 2005–20, FAR Case 

2006–029. Interested parties may also 

visit our website at http:// 

www.regulations.gov. For information 

pertaining to status or publication 

schedules, contact the FAR Secretariat 

at (202) 501–4755. 

RULE LISTED IN FAC 2005–20 

Subject FAR case Analyst 

Federal Funding Accountability and Transparency Act (FFATA) - Reporting Requirement of Subcontractor 

Award Data 

2006–029 Woodson. 

SUPPLEMENTARY INFORMATION: A 

summary of the FAR rule follows. For 

the actual revisions and/or amendments 

to this FAR case, refer to FAR Case 

2006–029. 

FAC 2005–20 amends the FAR as 

specified below: 

Federal Funding Accountability and 

Transparency Act (FFATA) - Reporting 

Requirement of Subcontractor Award 

Data (FAR Case 2006–029) 

This final rule amends 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. 

This final rule establishes a pilot 

program to test the collection and 

accession of subcontract award data. As 

a result, subcontracts awarded and 

funded with Federal appropriated funds 

will eventually be disclosed to the 

public in a single searchable website. 

However, information reported under 

the pilot program will not be disclosed 

to the public. 

Dated: August 29, 2007. 

Al Matera, 

Director, Office of Acquisition Policy. 

Federal Acquisition Circular 

Federal Acquisition Circular (FAC) 

2005-20 is issued under the authority of 

the Secretary of Defense, the 

Administrator of General Services, and 

the Administrator for the National 

Aeronautics and Space Administration. 

Unless otherwise specified, all 

Federal Acquisition Regulation (FAR) 

and other directive material contained 

in FAC 2005-20 is effective September 

6, 2007. 

Dated: August 27, 2007. 

Shay D. Assad, 

Director, Defense Procurement and 

Acquisition Policy. 

Dated: August 29, 2007. 

Al Matera, 

Acting Senior Procurement Executive, 

General Services Administration. 

Dated: August 28, 2007. 

Sheryl Goddard, 

Acting Assistant Administrator for 

Procurement, National Aeronautics and 

Space Administration. 

[FR Doc. 07–4338 Filed 9–5–07; 8:45 am] 

BILLING CODE 6820–EP–S 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 4, 12, and 52 

[FAC 2005–20; FAR Case 2006–029;Docket 

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: Final rule. 

SUMMARY: The Civilian Agency 

Acquisition Council and the Defense 

Acquisition Regulations Council 

(Councils) have agreed on a final rule 

amending the Federal Acquisition 

Regulation (FAR) to require that 

contractors report specific subcontract 

awards to a public database as a pilot 

program. 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. 

DATES: Effective Date: September 6, 

2007. 

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Federal Register / Vol. 72, No. 172 / Thursday, September 6, 2007 / Rules and Regulations 51307 

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 FAC 2005–20, FAR case 

2006–029. 

SUPPLEMENTARY INFORMATION: 

A. Background 

This final rule amends the FAR to 

establish a pilot program 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. However, information reported 

under the pilot program will not be 

disclosed to the public. 

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 are adding a 

new Subpart to FAR Part 4, with an 

associated clause in FAR Part 52, which 

addresses reporting subcontract awards. 

The pilot program will terminate no 

later than January 1, 2009. 

This rule applies to contracts with 

values equal to or greater than $500 

million awarded and performed in the 

United States, and requires the 

awardees to report all first tier 

subcontract awards exceeding $1 

million to the FFATA database at 

www.esrs.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. This rule does not apply 

to classified contracts or commercial 

item contracts issued under FAR Part 

12. 

DoD, GSA, and NASA published a 

proposed rule in the Federal Register at 

72 FR 13234 on March 21, 2007. 

Seventeen respondents submitted 

comments in response to the proposed 

rule. A discussion of the comments is 

provided below. No changes were made 

to the rule as a result of those 

comments. 

1. Burden Imposed and Usefulness of 

Database. Thirteen comments were 

received concerning the burden that 

will be imposed on contractors in order 

to capture the required data in the final 

subcontract reporting database. Some 

contractors currently do not collect the 

specific subcontractor data and may 

need to create a new system of 

collection. Respondents were concerned 

about the cost of software modifications 

necessary to collect the information 

required by FFATA. In addition, the 

manual input is perceived to be labor 

intensive and the cost to ensure 

compliance, as well as cost to audit, will 

be significant to both the contractor and 

the Government. It was suggested that 

the pilot threshold of $1 million was a 

reasonable threshold and it should be 

maintained in final reporting 

requirements in order to relieve some of 

the burden associated with the rule. 

Another comment related to the 

threshold suggested that the threshold 

should balance the data aggregation 

costs with the resulting benefits of 

providing the data to the public. One 

respondent suggested that the contractor 

should not have to report to the public 

because there are sufficient Government 

agencies that already monitor contractor 

performance and, therefore, a public 

database would not be necessary. One 

respondent requested that the rule be 

clarified to require reporting at the task 

order level, as reporting the required 

information at the onset of the contract 

(IDIQ or requirements contracts) would 

not accomplish the goal of FFATA. No 

other comments were received regarding 

the proposed pilot program. Five 

respondents submitted comments 

regarding the impact and burden of 

FFATA final reporting requirements on 

small business indicating that the 

burden on small businesses would be 

particularly heavy. 

Response: The FFATA of 2006 

mandates the existence and operation of 

a single searchable website, accessible 

by the public to require full disclosure 

of all transactions of $25,000 or more 

involving Federal funds. The Councils 

must comply with the statute when the 

final reporting requirements are 

established. The definition of 

‘‘subcontract’’ in FAR clause 52.204–10 

refers to the definition of ‘‘contract’’

which would include all types of 

commitments that obligate the 

Government to an expenditure of 

appropriated funds, including task 

orders. According to the FFATA data 

definitions, available at the FFATA 

reporting website, ‘‘award amount’’ is 

defined as the amount of support 

provided in the award, based on 

obligations. The contractor should 

report a subcontract when the money is 

obligated. If obligation happens at the 

time the IDIQ is awarded then the 

contractor would report the amount of 

the award in the FFATA database at the 

time of the IDIQ award. If money is 

obligated at the time each task/delivery 

order is issued, then the contractor 

would report the amount of the award 

in the FFATA database at the time of 

award of the order. In addition, the 

clause provides a definition of 

‘‘subcontract,’’ which is based on the 

FAR definition at 2.1, and includes 

bilateral contract modifications. If 

additional money is obligated by a 

bilateral subcontract modification, then 

that amount must also be reported in the 

FFATA database as a separate record. 

The pilot program will not allow the 

modification of an existing record, but 

the respondents recommendation will 

be considered when establishing the 

final requirements. The comments 

regarding small business are addressed 

in paragraph B, Regulatory Flexibility 

Act, of this notice. 

2. Duplicate Collection Requirement. 

Five comments were received regarding 

the existence of current databases that 

would be viewed as providing sufficient 

information to comply with the law. 

The existing databases or system of 

collecting subcontract information 

include the Federal Procurement Data 

System (FPDS), the Electronic 

Subcontracting Reporting System, small 

business subcontracting plans, and IRS 

Form 1099. It was also suggested that 

the Councils consider coordinating with 

other unspecified financial mechanisms 

that are currently under development. 

Response: The Councils agree that 

information contained in existing data 

collection systems/databases should be 

utilized as much as possible to fulfill 

the requirements of FFATA. However, 

required subcontract information is not 

available from existing Federal systems/ 

databases. Therefore, a certain amount 

of data must be provided by the 

contractor through a single searchable 

website as prescribed by Section 2(b)(1) 

of FFATA. Accordingly, the final rule 

remains unchanged. 

3. Verification and Validation of Data 

in the FFATA Database. Three 

respondents question the usefulness of 

a system that the Government cannot 

validate. Four comments were received 

suggesting that the Government needs to 

establish a means of ensuring 

compliance and accuracy of the data 

available in the FFATA database. 

Response: While the Government 

does not have a mechanism to verify or 

validate subcontract data input by a 

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51308 Federal Register / Vol. 72, No. 172 / Thursday, September 6, 2007 / Rules and Regulations 

contractor, the Government will use 

routine contract administration 

oversight to ensure contractor 

compliance with the FAR clause at 

52.204–10, Reporting Subcontract 

Awards. The final rule therefore 

remains unchanged. 

4. Reporting Period. Six comments 

were received requesting clarification of 

the reporting requirements for the pilot 

program and suggesting alternative 

timeframes for reporting data. 

Clarification was requested regarding 

reporting of the initial award of a 

subcontract and subsequent extensions 

in the period of performance or an 

exercise of an option for the same 

subcontract. It was suggested that the 

FFATA database allow for updates of 

existing records. One respondent 

believes that quarterly reporting would 

be burdensome. Another respondent 

suggested changing the reporting 

requirement to 90 days after subcontract 

award. 

Response: The reporting periods for 

the pilot program are sufficient to allow 

contractors to successfully report 

subcontract awards. The suggestion to 

have the FFATA database allow for 

updates of existing records, including 

the suggestion to tie the reporting 

periods to the period of performance, 

will be given consideration when the 

final reporting requirements are 

established. 

5. Security Issues. Nine comments 

were received expressing concerns 

about industrial, national, and other 

security issues. Since the database will 

be public, anyone, including terrorists, 

will have access to the information. 

Providing names and addresses of 

contractors/subcontractors in a public 

database creates unnecessary risks in a 

national, operational, and human 

security sense and will undermine the 

Government mission and national 

security. It was suggested that reporting 

requirements exclude any item 

constituting a weapon system or 

components thereof and any item 

subject to the International Traffic in 

Arms Regulation. One respondent 

believes that security will not be 

compromised because the requirement 

clearly exempts classified solicitations 

and contracts. 

Response: FFATA mandates the 

existence and operation of a single 

searchable website, accessible by the 

public to require full disclosure of 

transactions of $25,000 or more 

involving Federal funds. The specific 

data elements, including names and 

addresses, are required for each Federal 

award, including subcontracts. 

However, Section 3 of FFATA stipulates 

that the Act does not require disclosure 

of classified information, and the FAR 

rule exempts classified contracts that 

may be applicable to industrial, 

national, and other security issues, and 

the pilot database only applies to prime 

contracts awarded and performed in the 

United States. Accordingly, the 

Councils have determined that no 

change is necessary. 

6. Competition. Eleven respondents 

expressed concerns regarding 

competition. In general, disclosure of 

information will provide unwarranted 

competitive advantages to competitors. 

Comments received stated that the name 

and location of subcontractors is 

considered confidential proprietary 

business information and should not be 

provided to the public. Longstanding 

laws (e.g., Freedom of Information Act 

(FOIA) and Trade Secrets Act) are 

designed to protect contractors’ and 

subcontractors’ confidential and 

proprietary business information. Courts 

have interpreted Exemption 4 of FOIA 

to preclude the disclosure of certain 

contractor pricing information, finding 

that the release of pricing information, 

particularly line item prices and option 

year prices, may result in substantial 

competitive harm to a contractor. The 

FFATA database will provide 

competitors with source and price 

information that could be used to 

develop procurement strategies that 

undermine future business. In addition, 

posting pilot program information goes 

beyond the requirements of FFATA and 

could present serious risks to both 

contractors and subcontractors (e.g., 

competitors may gain insight into a 

contractor’s team partners). It is 

believed that the public will 

misunderstand the basis of awards (e.g., 

a contract awarded on a basis other than 

lowest price). One respondent believes 

that the rule went beyond the FFATA 

requirements and suggests that the 

Councils work with the Office of 

Management and Budget (OMB) to 

establish the pilot program. One 

respondent believes that FFATA 

infringes on important commercial 

business practices, making it difficult to 

continue beneficial relationships that 

serve both commercial and Government 

customers. 

Response: FFATA requires the 

existence and operation of a single 

searchable website, accessible by the 

public that includes specific 

information for Federal awards. The 

Councils must comply with the 

requirements of the law when the final 

reporting requirements are established. 

Under 41 U.S.C. 405 and 421, the Office 

of Federal Procurement Policy at OMB 

oversees the issuance of the FAR. OMB 

approves all FAR rules before 

publication, including this final rule 

and its proposed rule. The information 

reported under the pilot program will 

not be disclosed to the public. 

7. Applicability. Six comments were 

received regarding applicability of the 

rule. Some required clarification of 

applicability and others suggested 

changes in the application of the rule. 

Clarification was requested as to 

whether the reference to the term 

‘‘contract number’’ in the FAR clause at 

52.204–10 applied to the prime contract 

number or subcontract number/ 

purchase order number, and whether 

‘‘subcontractor location including 

address’’ applied to the billing address 

of the subcontractor. It was also 

requested that clarification be provided 

regarding the assumption that a contract 

was classified when it contained a 

Department of Defense, Contract 

Security Classification Specification 

(DD Form 254). 

Certain respondents strongly 

suggested that final reporting 

requirements be limited to first tier 

subcontracts because no privity of 

contract relationship exists between 

subcontractors and the Government, 

while a single respondent believed that 

the requirement to report all 

subcontracts, regardless of tier, was 

reasonable and would ensure 

consistency in reporting and maximize 

visibility into Federal spending. In 

addition, two respondents indicated 

that the final reporting requirements 

should not apply to commercial 

contractors because it will be 

excessively burdensome for them to 

identify and report on Government 

contracts and items purchased as 

company inventory should not be 

reportable. Concerns that commercial 

subcontractors might have their 

subcontract prices and other sensitive 

information disclosed on a public 

website raises concerns regarding the 

Federal Acquisition Streamlining Act of 

1994 (FASA). FASA generally exempts 

laws from applying to commercial item 

subcontracts unless the statute 

specifically refers to that section. The 

respondent further stated that the final 

reporting requirements should not apply 

to contracts awarded or performed 

outside the United States. Extending the 

reporting requirements to contracts 

awarded or performed outside the 

United States will stretch the resources 

of an already overtaxed acquisition 

workforce in foreign countries. In 

addition, certain foreign countries may 

prohibit release of financial information 

outside the country. One respondent 

suggested that a limited set of data 

should be reported for sensitive but 

unclassified contracts (e.g., do not 

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Federal Register / Vol. 72, No. 172 / Thursday, September 6, 2007 / Rules and Regulations 51309 

include the place of performance 

location). 

Response: Regarding clarifications of 

applicability, the reference to ‘‘contract 

number’’ in FAR 52.204–10 refers to the 

prime contract number or purchase 

order number assigned by the 

Government, consistent with the FAR 

convention of all references to 

‘‘contractor’’ meaning the recipient of a 

Government contract. The subcontractor 

location including address refers to the 

principal business location of the 

subcontractor receiving the award. The 

Councils expect the FFATA database to 

include helpful information regarding 

field definitions. The DD Form 254 is 

the basic document for conveying to 

contractors the applicable classified 

areas of information involved in a 

classified effort. The classification may 

be related to various attachments or 

supplement documents or a facility and 

would be identified in the body of the 

DD Form 254. The rule does not apply 

to classified contracts. 

The FAR clause at 52.204–10 does not 

require reporting of subcontract awards 

below the first tier. In addition, the 

clause is not required in solicitations 

and contracts for commercial items 

issued under FAR Part 12. However, 

comments received regarding the 

applicability to commercial contractors 

and to contracts awarded or performed 

outside the United States will be 

considered in formation of the final 

requirements. Therefore, the final rule 

remains unchanged. 

8. Unique Identifier for 

Subcontractors. Eight comments were 

received regarding whether the unique 

subcontractor identifier should be the 

‘‘data universal numbering system 

(DUNS’’) number, the Taxpayer 

Identification Number (TIN), some other 

number, or a non-numerical unique 

identifier. One respondent requested 

clarification as to whether the unique 

identifier was the prime contract 

number. Six respondents favored the 

DUNS number because it is wellestablished as the unique identifier for 

tracking Federal prime contractors. 

Since many subcontractors are also 

prime contractors on other contracts, 

using the DUNS number would 

eliminate any confusion regarding what 

role they are playing, prime or 

subcontractor. Two respondents favored 

the use of the TIN as a unique identifier 

because subcontractors are not required 

to obtain a DUNS number. There are 

limited controls on the issuance of 

DUNS numbers and therefore they are 

considered to be less reliable than the 

TIN. 

Response: Use of the DUNS number is 

expected to be the most cost-effective 

identifier for reporting awards in the 

FFATA database. It is the common 

identifier used in most Federal systems/ 

databases to identify contractors. Any 

contractor or subcontractor needing to 

obtain a DUNS number may do so by 

visiting www.dnb.com/us. For the Pilot 

Program, the unique identifier for the 

subcontractor will be defined in the 

FFATA pilot database. Therefore, the 

final rule remains unchanged. 

9. Definition of Subcontract. One 

comment was received stating that the 

proposed definition of ‘‘subcontract’’

(see FAR clause 52.204–10) would lead 

to confusion over which business entity 

is entering into the subcontract. The 

respondent suggested that the definition 

be revised to be more closely aligned to 

the definition found at FAR 44.101. 

Response: The definition at FAR 

clause 52.204–10 was adapted from the 

FAR 44.101 definition of ‘‘subcontract’’

and means ‘‘* * * any contract entered 

into by the Contractor to furnish 

supplies or services for performance of 

this contract * * *.’’ The definition is 

clear and, therefore, remains unchanged 

in the final rule. 

10. Conflict with DFARS 252.204– 

7000, Disclosure of Information. Two 

comments were received regarding the 

apparent conflict of FFATA with 

Defense Federal Acquisition Regulation 

Supplement (DFARS) Clause 252.204–

7000, Disclosure of Information. The 

DFARS clause prohibits the disclosure 

of any part of the contract unless the 

contracting officer provides written 

approval. Clarification is requested as to 

whether the FFATA clause supersedes 

DFARS 252.204–7000. 

Response: This comment is outside 

the scope of this FAR rule. 

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 

DoD, GSA, and NASA certify that this 

final rule will not 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 for the 

application of the pilot program is $500 

million. The number of small businesses 

receiving such large prime contract 

awards is estimated to be miniscule to 

none. 

Comments were received regarding 

the impact of FFATA final reporting 

requirements on small business. One 

respondent stated that historically, 

small businesses have not been required 

to track subcontract awards by contract 

and implementing the final reporting 

requirements of FFATA would mean 

that they would need to develop a 

tracking system. A respondent stated 

that FFATA would increase costs 

associated with hiring resources to track 

and input data. In addition, another 

respondent stated that many small 

businesses may not be familiar with 

regulations and laws related to 

subcontract reporting. 

The public comments and results of 

the pilot program will be considered 

when the final reporting requirements 

are established, with a goal of 

minimizing burdens imposed on small 

businesses. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act (Pub. 

L. 104–13) applies because the final rule 

contains information collection 

requirements. Accordingly, the FAR 

Secretariat has forwarded a request for 

approval of a new information 

collection requirement concerning OMB 

Control Number 9000–00XX, FFATA 

Reporting Requirement of Subcontractor 

Award Data, to OMB under 44 U.S.C. 

3501, et seq. Public comments 

concerning this request will be invited 

through a subsequent Federal Register 

notice. 

List of Subjects in 48 CFR Parts 4, 12, 

and 52 

Government procurement. 

Dated: August 29, 2007. 

Al Matera, 

Director, Office of Acquisition Policy. 

■ Therefore, DoD, GSA, and NASA 

amend 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. 

No. 109–282) by establishing a pilot 

program for a single searchable website, 

which will eventually be available to 

the public at no charge, that includes 

information on Federal subcontracts. 

This pilot program will expire not later 

than January 1, 2009. Information 

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51310 Federal Register / Vol. 72, No. 172 / Thursday, September 6, 2007 / Rules and Regulations 

reported under the pilot program will 

not be disclosed to the public. 

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 

new paragraph (a)(6) to read as follows: 

12.503 Applicability of certain laws to 

Executive agency contracts for the 

acquisition of commercial services. 

(a) * * * 

(6) 31 U.S.C. 6101 note, Pub. 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 

(SEP 2007) 

(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.esrs.gov for each subcontract award 

with a value greater than $1 million made 

during that quarter. (The Contractor shall 

follow the instructions at www.esrs.gov to 

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. 07–4336 Filed 9–5–07; 8:45 am] 

BILLING CODE 6820–EP–S 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Chapter 1 

[Docket FAR—2007—002; Sequence 5] 

Federal Acquisition Regulation; 

Federal Acquisition Circular 2005–20; 

Small Entity Compliance Guide 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Small Entity Compliance Guide. 

SUMMARY: This document is issued 

under the joint authority of the 

Secretary of Defense, the Administrator 

of General Services and the 

Administrator of the National 

Aeronautics and Space Administration. 

This Small Entity Compliance Guide 

has been prepared in accordance with 

Section 212 of the Small Business 

Regulatory Enforcement Fairness Act of 

1996. It consists of a summary of the 

rule appearing in Federal Acquisition 

Circular (FAC) 2005–20 which amends 

the FAR. An asterisk (*) next to a rule 

indicates that a regulatory flexibility 

analysis has been prepared. Interested 

parties may obtain further information 

regarding this rule by referring to FAC 

2005–20 which precedes this document. 

These documents are also available via 

the Internet at http:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Laurieann Duarte, FAR Secretariat, (202) 

501–4755. For clarification of content, 

contact the analyst whose name appears 

in the table below. 

RULE LISTED IN FAC 2005–20 

Subject FAR case Analyst 

Federal Funding Accountability and Transparency Act (FFATA) - Reporting Requirement of Subcontractor 

Award Data 

2006–029 Woodson. 

SUPPLEMENTARY INFORMATION: A 

summary of the FAR rule follows. For 

the actual revisions and/or amendments 

to this FAR case, refer to FAR Case 

2006–029. 

FAC 2005–20 amends the FAR as 

specified below: 

Federal Funding Accountability and 

Transparency Act (FFATA) - Reporting 

Requirement of Subcontractor Award 

Data (FAR Case 2006–029) 

This final rule amends 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. 

This final rule establishes a pilot 

program to test the collection and 

accession of subcontract award data. As 

a result, subcontracts awarded and 

funded with Federal appropriated funds 

will eventually be disclosed to the 

public in a single searchable website. 

However, information reported under 

the pilot program will not be disclosed 

to the public. 

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