Office of General Counsel

Summary of Federal Laws

Government Contracts

Federal Acquisition Regulation (FAR)

48 C.F.R. Parts 1-99

Relevant cites to the FAR have been identified throughout this Summary of Federal Laws. Technically the FAR as a whole does not apply to non-profits. Instead, non-profits follow the rules in OMB Circulars a-110, a-133, and A-21.

However, indivdual clauses in the the FAR will be applicable to non-profits.

Proposed Rule, Federal Acquisition Regulation; FAR Case 2009-006, Labor Relations Costs, 75 Fed. Reg 19345, April 14, 2010. This order treats as unallowable the costs of any activities undertaken to persuade employees, whether employees of the recipient of Federal disbursements or of any other entity, to exercise or not to exercise, or concerning the manner of exercising, the right to organize and bargain collectively through representatives of the employee's own choosing.

Federal Awardee Performance and Integrity Information System, Final Rule, 75 Fed. Reg. 14059, March 23, 2010. This rule, effective April 22, 2010, will implement the Federal Awardee Performance and Integrity Information System (FAPIIS). This system is designed to improve the Government's ability to evaluate the business ethics and expected performance quality of prospective contractors and protect the Government from awarding contracts to contractors that are not responsible sources. Under the final rule, contracting officers will be required to review information in FAPIIS in connection with contracts over the simplified acquisition threshold and document in the contract file how information in FAPIIS was considered. Before making a non-responsibility determination based on information in FAPIIS, contracting officers must provide contract offerors with an opportunity to provide additional information demonstrating their responsibility. Vendors submitting proposals on federal contracts over $500,000 and having more than $10 million in active contracts and grants as of the time of proposal submission must report in FAPIIS certain information pertaining to criminal, civil or administrative proceedings resulting in a determination of fault. If a contract is awarded, the information must be updated by the contractor on a semi-annual basis. Contractors will be notified whenever the government post new information to the contractor's record in FAPIIS and contractors will have the ability to post comments on such information.

ARRA Interim Final Rules, 74 Fed. Reg. 14492-14652, March 31, 2009. See Defense Department for the complete text of Interim Final Rules implementing the ARRA provisions to the FAR. The interim final rules address Whistleblower Protections; Buy American Requirements for Construction Material; Quarterly Reporting Requirements; and Agency Inspector General and Comptroller General Access to Contractor Records and Personnel. The rules are effective March 31.

ARAA and Federal Acquisition Regulation Reporting Requirements, 74 Fed. Reg. 48971, Sept. 25, 2009

This notice affects Federal contractors who have contracts funded, in whole or in part, by the American Recovery and Reinvestment Act of 2009 (''Recovery Act''), and include the FAR clause 52.204-11. Quarterly reports must be filed on the use of awarded federal funds. This notice is being provided to offer assistance to Federal contractors in understanding the FederalReporting.gov centralized reporting requirements. Note the deadline for the first set of reports due has been extended until October 20 (and October 21 by some announcements). A one time registration is required bedore the school can submit reports.

Contractor Business and Ethics Compliance Program and Disclosure Requirements
72 Fed. Reg. 67064 Nov. 12, 2008. Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA). Effective Date: December 12, 2008.
The final rule requires federal government contractors to establish and maintain internal controls and compliance programs to detect and prevent improper conduct in connection with the award or performance of government contracts; and to timely disclose to the applicable agency Office of Inspector General whenever in connection with the award, performance or close-out of a government contract or subcontract the contractor has credible evidence of a violation of federal criminal law involving fraud, conflict of interest, bribery or gratuity found in Title 18 of the U.S. Code, or a violation of the civil False Claims Act.

Final Rule, Federal Acquisition Regulation; FAR Case 2006-007, Proposed Contractor Code of Ethics and Business Conduct, 72 Fed. Reg. 65873 (Nov. 23, 2007)

This final rule, effective December 24, 2007, affects government contractors with contracts of $5M and a performance period of 120 days or more. These contractors will need to implement an employee training and compliance program if one is not already in place. The program must be combined with an internal control system to facilitate discovery of improper contract. Contractors must also display Inspector General OIG Fraud Hotline Posters. The requirement for a formal training program and internal control system is not applicable to small businesses. All subcontractors meeting the threshold must also comply. This rule does not apply to contracts for commercial items or contracts performed outside the U.S. A Contractor Code of Business Ethics and Conduct clause (codified at 48 CFR 52.203-13 will have to be included in covered government contracts. The Council on Government Relations had urged deferral of this new requirement for R and D contracts to universities and non-profits pending completion of the National Science and Technology Council's initiative to develop government wide voluntary compliance guidance for schools that received federal funding.

See the article by Buchanan Ingersoll and Rooney PC (December 2007) titled New FAR Rule Requires Contractors, Both Large and Small, to Establish Code of Business Ethics for more information and a link to a related proposed rule at 72 Fed. Reg. 64019, Nov. 14, 2007.

Resources
Power Point on the FAR titled Federal Acquistion Regulations: FAR and Away by Norman Herbert, Brown University and Michael Corcoran, MIT

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updated 4-16-10 to add FAPIIS

updated mlo 4-26-10 to add 75 Fed. Reg. 19345
Links checked and updated June 28th, 2010, FJL.
Links checked 07/19/10 TOL