The Catholic University of America

Summary of Federal Laws



The Federal Funding Accountability and Transparency Act (FFATA)

 Public Law 109-282, as amended by Section 6205 (a) of Public Law 110-252 (see 31 USC 6101 note)
2 CFR Part 170;   2 CFR 170.320:   48 CFR Parts 4, 12, 42, and 52;

This law was signed Sept. 26, 2006. The intent is to assure transparency in government spending. To that end, information on  federal awards will be made available to the public via a single web page, www.USASpending.gov.

The FFATA Subaward Reporting System (FSRS) will collect data from Federal prime contractors on subcontracts they award.

For contracts, based on the FAR Interim Final Rule published on July 8, 2010 (see below)

  •  Until September 30, 2010, any newly awarded subcontract must be reported if the primecontract award amount was $20,000,000 or more.
  • From October 1, 2010, until February 28, 2011, any newly awarded subcontract must be reported if the prime contract award amount was $550,000 or more.
  •  Starting March 1, 2011, any newly awarded subcontract must be reported if the prime contract award amount was $25,000 or more.

For grants, both mandatory and discretionary grants, equal to or over $25,000, and awarded on or after October 1, 2010 must be reported by the prime awardee. The following are not subject to the Transparency Act’s reporting requirements:
• Grants, whether existing or new as of October 1, 2010, that are funded by the Recovery Act. Rather, such awards will continue to report those awards and related subawards through FederalReporting.gov;
• Transfers of title between Federal agencies of Federally owned property;
• Federal inter-agency transfers of award funds;
• Cooperative Research and Development Agreements (CRDAs), as defined under 15 U.S.C. 3710a;
• Federal awards to individuals who apply for or receive Federal awards as natural persons (i.e., unrelated to any business or non-profit organization he or she may own or operate in his or her name);
• Federal awards to entities that had a gross income, from all sources, of less than $300,000 in the entities' previous tax year; and
• Federal awards, if the required reporting would disclose classified information.

75 Fed. Reg. 39414 (July 8, 2010) Federal Acquisition Regulation; FAR Case 2008-039, Reporting Executive Compensation and First-Tier Subcontract Awards, Interim Rule. Effective July 8, 2010. (Contracts)

Contracting officers shall include the FAR clause at 48 CFR 52.204-10, Reporting Executive Compensation and First-Tier Subcontract Awards, in accordance with FAR 4.1403, in solicitations issued on or after the effective date of this rule, and resultant contracts. Contracting officers shall modify existing indefinite- delivery indefinite-quantity (IDIQ) contracts on a bilateral basis in accordance with FAR 1.108(d)(3) to include the clause for future orders. This includes modifying blanket purchase agreements under IDIQ contracts. IDIQ contracts include Federal Supply Schedule contracts and task- and delivery-order contracts such as Governmentwide acquisition contracts.

75 Fed. Reg. 55663 Sept. 14, 2010, Requirements for Federal Funding Accountability and Transparency Act Implementation; Effective Sept. 14, 2010; Interim Final Guidance (Grants)
OMB is issuing interim final guidance to agencies to establish requirements for Federal financial assistance applicants, recipients, and subrecipients that are necessary for the implementation of the Federal Funding Accountability and Transparency Act of 2006, hereafter referred to as ``the Transparency Act'' or ``the Act''. This interim final guidance provides standard wording for an award term that each agency must include in grant and cooperative agreement awards it makes on or after October 1, 2010, to require recipients to report information about first-tier subawards and executive compensation under only those awards. This implementation of the requirement for reporting of subawards and executive compensation under Federal assistance awards parallels the implementation for subcontracts and executive compensation under Federal procurement contracts, which is in the Federal Acquisition Regulation.This section will be codified at 2 CFR Part 170. This part applies to an agency's grants, cooperative agreements, loans, and other forms of Federal financial assistance subject to the Transparency Act, as defined in Sec. 170.320.

Through an agency's implementation of the guidance in this part, this part applies to all entities, other than those excepted in paragraph (b) of this section, that-- (1) Apply for or receive agency awards; or (2) Receive subawards under those awards. (b) Exceptions. (1) None of the requirements in this part apply to an individual who applies for or receives an award as a natural person (i.e., unrelated to any business or non-profit organization he or she may own or operate in his or her name). (2) None of the requirements regarding reporting names and total compensation of an entity's five most highly compensated executives apply unless in the entity's preceding fiscal year, it received-- (i) 80 percent or more of its annual gross revenue in Federal procurement contracts (and subcontracts) and Federal financial assistance awards subject to the Transparency Act, as defined at Sec. 170.320 (and subawards); and (ii) $25,000,000 or more in annual gross revenue from Federal procurement contracts (and subcontracts) and Federal financial assistance awards subject to the Transparency Act, as defined at Sec. 170.320; and (3) The public does not have access to information about the compensation of the senior executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.

Reporting is required unless the entity receiving grant or K (contract)  had gross income in previous tax year of under $300,000.

Note that for now only grants and cooperative agreements are covered under this interim rule, even though the statutory directive is broader. See this note in the federal register above at page 55666: 

Although the 2008 Federal Register notice proposed applicability of the guidance broadly to all of the types of financial assistance subject to the Transparency Act, we revised the interim final guidance to implement at this time only the reporting requirements specifically for first-tier subawards under grants and cooperative agreements in light of these public comments and concerns. We are deferring to a later date the implementation of subaward reporting under other financial assistance subject to the Act, which includes loans and loan guarantees, as well as lower-tier subawards. We understand the legitimate concern that additional administrative requirements can have an impact on financial assistance applicants and recipients under any Federal program. .

When to report

Subaward information must be reported no later than the end of the month following the month in which the obligation was made. For example, if the obligation was made Nov. 7, 2010, report due no later than Dec. 31, 2010.

Beginning October 29, 2010, the grants subaward reporting functionality will be available for prime grant awardees to report subawards against new grants $25,000 or over, awarded on or after October 1, 2010. See http:// www.fsrs.gov

What to report: Required Subaward Data Elements to collect

  • DUNS number (may need the DUNS +4 extension created in CCR when a need for more than one bank/ETF account for a location)  
  • Name of the subaward org.
  • DBA name.
  • Address.
  • Parent Org DUNS number.
  • Amount of subaward (net dollars of federal funds awarded to subawardee including modifications.
  • Date the Subaward Agreement signed with university
  • Principal place of performance.
  • Subaward number (# university  gives to track subawards)
  • Ask the subawardee if they org received 80% or more of annual gross revenue in US federal contracts, subcontracts, grants, loans, subgrants, and/or cooperative agreements and $25,000,000 or more in annual gross revenues from the above. If yes, then you have to report names and total compensation of the top 5 highly compensated officials of the subawardee org.
  • Subaward project description.

How to make it easier for prime contractors: 

COGR suggests amending your subrecipient agreements to require  your subcontractors to register in CCR, and then the fields required will automatically populate when you enter the DUNS number for the subcontractor.

Resources

OMB memo August 27, 2010 Memorandum for Senior Accountable Officials From: Jeffrey D. Zients on Open Government Directive-Federal Spending Transparency and Subaward and Compensation Data Reporting

Grants Blog on OMB 133 and Details on Subaward Reporting
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CCR updated CFR links 6/15/15