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Government Contracts Monitor

Short Take: FAPIIS Reporting Requirements Expanded to Include Information about Affiliates and Predecessors

April 11, 2016

By: Hopewell Darneille

Effective April 6, 2016, the Federal Acquisition Regulation (FAR) has been amended to require reporting in the Federal Awardee Performance and Integrity Information System (FAPIIS) to include, to the extent practicable, identification of any immediate owner or subsidiary, and all predecessors of an offeror that held a Federal contract or grant within the last three years.

The final rule implements section 852 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2013, which requires that the FAPIIS include, to the extent practicable, information on any parent, subsidiary, or successor entities to a corporation in a manner designed to give the acquisition officials using the database a comprehensive understanding of the performance and integrity of the corporation in carrying out Federal contracts and grants. The rule addresses the collection of information with regard to offerors that are responding to a solicitation for a Federal contract.

The new information on the immediate owner and direct subsidiaries of an entity will be available through FAPIIS, based on the data from offerors’ responses to the FAR provision 52.204–17, Ownership or Control of Offeror and a new clause, FAR 52.204-20, Predecessor of Offeror. The intent of the final rule is to provide a more comprehensive understanding of the performance and integrity of the corporation before awarding a Federal contract. In addition to establishing the new clause, the rule modifies parts of FAR Subpart 9.1 and FAR 52.212-3, Offeror Representations and Certifications -- Commercial Items.

The new requirements apply to all solicitations and resultant contracts, including contracts and subcontracts for acquisitions in amounts not greater than the simplified acquisition threshold, and contracts and subcontracts for the acquisition of commercial items, (including commercially available off-the-shelf items).

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