FAR 32.006-5—Reporting.
Plain-English Summary
FAR 32.006-5 establishes the annual reporting requirement that follows a remedy coordination official’s recommendation under FAR 32.006-4(a). It tells agencies when a report must be prepared, distinguishes between civilian agencies and the Department of Defense, and ties the reporting duty to the statutory requirements in 41 U.S.C. 4506(h) and 10 U.S.C. 3806(h). The section also specifies exactly what the report must contain: each recommendation made, the action taken on each recommendation and the reasons for that action, and an assessment of the effect of each action on the Government. In practice, this is a transparency and accountability requirement for contract financing remedy decisions, ensuring there is a documented record of how the Government responded to recommended actions and what impact those responses had. For contracting officers and agency leadership, the rule means that remedy-related decisions cannot be handled informally; they must be captured in a formal annual report when a recommendation has been received.
Key Rules
Annual report required
If a recommendation is received under FAR 32.006-4(a), the agency must prepare a report for that fiscal year. The reporting obligation is triggered by the receipt of a recommendation, not by whether the recommendation is accepted or implemented.
Civilian agency reporting
For agencies other than the Department of Defense, the head of the agency is responsible for preparing the report. The requirement is grounded in 41 U.S.C. 4506(h).
DoD reporting standard
Within the Department of Defense, reports must be prepared in accordance with 10 U.S.C. 3806(h). The DoD follows its own statutory reporting framework, though the core content requirements remain aligned.
Required report contents
Each report must include every recommendation made by the remedy coordination official, the actions taken on each recommendation, and the reasons for those actions. This ensures the report shows both the recommendation and the Government’s response.
Assess government impact
The report must also assess the effects of each action on the Government. This requires more than a procedural summary; it calls for an evaluation of the practical consequences of the decision.
Responsibilities
Head of Agency (non-DoD)
Prepare the annual report for each fiscal year in which a recommendation was received under FAR 32.006-4(a), and ensure the report includes all required content.
Department of Defense
Prepare reports in accordance with 10 U.S.C. 3806(h) for fiscal years in which a recommendation was received, following the DoD-specific statutory reporting process.
Remedy Coordination Official
Issue recommendations under FAR 32.006-4(a) that become the basis for reporting; the recommendations must be captured in the report.
Contracting/Acquisition Officials
Support the documentation of actions taken on recommendations, provide the reasons for those actions, and help assess the effects on the Government so the report is complete and accurate.
Practical Implications
This section creates a formal paper trail for remedy-related decisions, so agencies should preserve the recommendation, the decision, the rationale, and the impact analysis as the year unfolds.
A common pitfall is treating the report as optional or waiting until year-end without maintaining records; that can lead to incomplete reporting or weak explanations for actions taken.
Another risk is omitting the effect-on-Government assessment, which is expressly required and often the most substantive part of the report.
Contracting officers should expect that remedy coordination recommendations may be reviewed at a higher level and summarized in a report that can be scrutinized for consistency, justification, and outcomes.
For contractors, the practical significance is indirect but important: decisions affecting contract financing remedies may be documented in a formal agency report, so the underlying facts and communications should be clear and well supported.
Official Regulatory Text
(a) In accordance with 41 U.S.C. 4506(h) , the head of an agency, other than the Department of Defense, shall prepare a report for each fiscal year in which a recommendation has been received pursuant to 32.006-4 (a). Reports within the Department of Defense shall be prepared in accordance with 10 U.S.C. 3806(h) . (b) In accordance with 41 U.S.C. 4506(h) and 10 U.S.C. 3806(h) , each report shall contain- (1) Each recommendation made by the remedy coordination official; (2) The actions taken on the recommendation(s), with reasons for such actions; and (3) An assessment of the effects of each action on the Government.