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FAC Establishes Performance and Integrity Information System

The Civilian Agency Acquisition and Defense Acquisition Regulations Councils have issued Federal Acquisition Circular 2005-40, which contains one rule amending the Federal Acquisition Regulation. The rule (FAR Case 2008-027) addresses the creation of the Federal Awardee Performance and Integrity Information System. This final rule goes into effect April 22, 2010. The FAC also contains a Small Entity Compliance Guide. For the text of FAC 2005-40, see 70,002.119.

Integrity and Performance

The rule finalizes, with changes, a proposed rule (70,006.235) to implement Section 872 of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (PL 110-417). Section 872 requires the establishment of a data system, the Federal Awardee Performance and Integrity Information System, containing specific information on the integrity and performance of covered federal agency contractors and grantees. FAPIIS is designed to improve the government's ability to evaluate the business ethics and expected performance quality of prospective contractors and to protect the government from awarding contracts to contractors that are not responsible sources. FAPIIS is available for use in award decisions at www.ppirs.gov. Government input to FAPIIS is accomplished at www.cpars.csd.disa.mil. This rulemaking and the associated launch of FAPIIS are part of an ongoing government initiative to increase consideration of contractor integrity and the quality of a contractor's performance in awarding federal contracts.


This final rule impacts both contracting officers and contractors. The COs will be required to check the FAPIIS website before awarding a contract over the simplified acquisition threshold, consider all the information in FAPIIS and PPIRS when making a responsibility determination, and notify the agency official responsible for initiating debarment or suspension action if the information appears appropriate for the official's consideration. COs must also enter a non-responsibility determination into FAPIIS. Contractors will be required to confirm, at the time of offer submission, information pertaining to criminal, civil and administrative proceedings through which a requisite determination of fault was made, and report this information into FAPIIS. Contractors must also update the information in FAPIIS on a semi-annual basis, throughout the life of the contract, by entering the required information into FAPIIS via the Central Contractor Registration database, available at http://www.ccr.gov. To implement these requirements, the rule adds two new contract clauses at FAR 52.209-7, "Information Regarding Responsibility Matters," and FAR 52.209-8, "Updates of Information Regarding Responsibility Matters." This final rule also adds a new FAR 9.104-6, and amends the following provisions: FAR 2.101, FAR 9.101, FAR 9.104-3, FAR 9.104-7, FAR 9.105-1, FAR 9.105-2, FAR 9.404, FAR 9.406-3, FAR 9.407-3, FAR 12.301, and FAR 42.1503, and the clauses at FAR 52.203-13, FAR 52.209-5, FAR 52.212-5, FAR 52.213-4, and FAR 52.244-6.




(The news featured above is a selection from the news covered in the Government Contracts Report Letter, which is published weekly and distributed to subscribers of the Government Contracts Reporter. )


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