Type: Law Bulletins
Date: 07/22/2010

How to Report Subcontractor and Executive Compensation Information to the Federal Government to Comply with the New Mandatory Disclosure Rule

Taft’s Government Contracts practice group recently distributed an e-Bulletin about a new regulation that requires prime contractors receiving federal contracts to provide information about their first-tier subcontractors and certain executives’ compensation. The regulation, although issued as an “interim” regulation, is effective immediately, with a phased-in applicability. 

In response to the inquiries we received requesting more details, we are providing the following additional information about the subcontracting reporting requirements. 

What is a first-tier subcontractor?

  • A subcontract awarded directly by a contractor to furnish supplies or services (including construction) for performance of a prime contract.
  • It does not include long term supplier or vendor agreements if the charges for those materials or supplies would normally be applied to the prime contractor’s general and administrative expenses (G&A) or indirect cost.

What information about my first-tier subcontractors do I need to report?

  • DUNS Number for subcontractor, and any parent company of that subcontractor.
  • Name of the subcontractor.
  • Amount of the award made to the subcontractor.
  • Date the award was made to the subcontractor.
  • Description of products or services to be provided under subcontract, to include “overall purpose and expected outcomes or results.”
  • Subcontractor number assigned by the contractor.
  • Physical address, including 9-digit ZIP code and congressional district.
  • Prime contract number and any applicable order number.
  • Awarding agency (name and code).
  • Funding agency (name and code).
  • Government contracting office code.
  • Treasury account symbol (TAS) as reported in FPDS.
  • Applicable NAICS (“North American Industry Classification System”) Code.

When do I report it?

  • Information must be reported by the end of the month following the month of award for any first-tier subcontract with a value of $25,000 or more. 
  • Any subsequent modifications that change previously reported information must also be reported.

Where do I report it? 

  • All information must be reported at www.fsrs.gov for each first-tier subcontractor. 
  • If a subcontractor’s executive compensation must be reported (see previous e-Bulletin), then that information must be reported at www.fsrs.gov
  • If a prime contractor must report its own executives’ compensation, it will do so at www.ccr.gov
  • Keep in mind that subcontractor executive compensation, if required, must be updated annually for the previous fiscal year, even though the other subcontractor information must only be updated when there are modifications. 

For More Information

If you have additional questions, please contact any member of the Taft Government Contracts team or your primary Taft attorney.

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