FAR 4.1402—Procedures.
Plain-English Summary
FAR 4.1402 explains how agencies and contracting officers are to administer the executive compensation and first-tier subcontract award reporting requirements in FAR 52.204-10. It covers agency review of contractor submissions, how agencies should handle inconsistencies, the role of FPDS data in pre-populating subcontract reports, what happens when FPDS data is wrong, the consequences of contractor noncompliance, and the small-business-style reporting exception for entities with gross income under $300,000 in the prior tax year. In practice, this section is about making sure the government can collect accurate transparency data on executive compensation and subcontract awards while minimizing unnecessary burden and using existing procurement data to streamline reporting. It also makes clear that agencies are not expected to verify information they would not normally have supporting documentation for, such as compensation data, but they must still check for consistency with contract records and require corrections when discrepancies are found. For contractors, the section matters because reporting errors, missed submissions, or use of a generic entity identifier can create compliance problems and delay or complicate subcontract reporting. For contracting officers, it creates an active oversight and enforcement role, including FPDS data correction, contractual remedies, and performance-record consequences when reporting obligations are not met.
Key Rules
Quarterly agency review
Agencies must review contractor reports on a quarterly basis to confirm the reported information is consistent with contract information. The review is not a full audit of all reported data, but it must be regular and focused on consistency with what the agency already knows from the contract file.
Correct inconsistencies
If the agency finds a mismatch between the report and contract information, it must notify the contractor and require either a corrected report or a reasonable explanation supporting the reported data. Agencies are not required to verify information they would not normally have supporting documentation for, such as compensation data.
Use FPDS data to pre-populate
When the contracting officer reports the contract action in FPDS under FAR subpart 4.6, certain data will flow into the contractor’s reporting screen to help complete the report. This is intended to reduce burden and improve accuracy by reusing existing procurement data.
Contractor must fix FPDS errors
If the contractor discovers that FPDS-originated data is wrong while preparing the subcontract report, the contractor should notify the Government contracting officer. The contracting officer is responsible for correcting the FPDS record so the contractor can complete the report accurately.
Generic entity identifiers create problems
Using the generic entity identifier permitted at FAR 4.605(c)(2) can interfere with reporting because it prevents FPDS data from pre-populating into the contractor’s report. This can make compliance harder and increase the risk of reporting errors or delays.
Noncompliance triggers remedies
If the contractor fails to comply with the reporting requirements, the contracting officer must use appropriate contractual remedies. The contracting officer must also record the failure in the contractor’s performance information under FAR subpart 42.15.
Low-income reporting exception
There is a reporting exception in 52.204-10(g) for contractors and subcontractors whose gross income in the previous tax year was under $300,000. This exception limits who must submit the reporting data.
Responsibilities
Agencies
Review contractor reports quarterly, compare them to contract information, identify inconsistencies, and notify the contractor when corrections or explanations are needed. Agencies may review reports through FSRS and are not required to verify data they would not normally have supporting information for.
Contracting Officers
Ensure the contract action is reported in FPDS, correct FPDS data when notified of errors, and take appropriate contractual remedies if the contractor fails to comply with reporting requirements. Contracting officers must also document the contractor’s failure in performance information under FAR subpart 42.15.
Contractors
Comply with the reporting requirements in 52.204-10, submit accurate reports, review pre-populated FPDS data for errors, notify the contracting officer if FPDS data is wrong, and correct reports or provide a reasonable explanation when the agency identifies inconsistencies.
First-Tier Subcontractors
Provide the information needed for the contractor’s reporting obligations when they are subject to the reporting requirement, unless an exception applies. Their data may be included in the reporting process and reviewed for consistency where applicable.
FPDS/FSRS Systems
FPDS supplies certain contract data to pre-populate contractor reports, and agencies may review reports in FSRS. These systems support reporting accuracy and government oversight, but they depend on correct contract data being entered initially.
Practical Implications
Contractors should check FPDS-derived fields carefully before submitting subcontract reports, because errors in the government’s data can still create a compliance problem if they are not caught and reported promptly.
Contracting officers need to keep FPDS records accurate from the start; otherwise, contractors may be unable to complete reports correctly, especially when a generic entity identifier is used.
Agencies are expected to do a consistency review, not a full verification of every reported figure, so contractors should be prepared to explain differences between report data and contract records.
Failure to report is not just a paperwork issue: it can lead to contractual remedies and negative performance information that may affect future source selections.
The under-$300,000 gross income exception should be checked early, because it may remove some entities from the reporting burden and avoid unnecessary follow-up.
Official Regulatory Text
(a) Agencies shall ensure that contractors comply with the reporting requirements of 52.204-10 , Reporting Executive Compensation and First-Tier Subcontract Awards. Agencies shall review contractor reports on a quarterly basis to ensure the information is consistent with contract information. The agency is not required to address data for which the agency would not normally have supporting information, such as the compensation information required of contractors and first-tier subcontractors. However, the agency shall inform the contractor of any inconsistencies with the contract information and require that the contractor correct the report, or provide a reasonable explanation as to why it believes the information is correct. Agencies may review the reports at http://www.fsrs.gov . (b) When contracting officers report the contract action to the Federal Procurement Data System (FPDS) in accordance with FAR subpart 4.6 , certain data will then pre-populate from FPDS, to assist contractors in completing and submitting their reports. If data originating from FPDS is found by the contractor to be in error when the contractor completes the subcontract report, the contractor should notify the Government contracting officer, who is responsible for correcting the data in FPDS. Contracts reported using the generic entity identifier allowed at FAR 4.605 (c)(2) will interfere with the contractor’s ability to comply with this reporting requirement, because the data will not pre-populate from FPDS. (c) If the contractor fails to comply with the reporting requirements, the contracting officer shall exercise appropriate contractual remedies. In addition, the contracting officer shall make the contractor’s failure to comply with the reporting requirements a part of the contractor’s performance information under subpart 42.15 . (d) There is a reporting exception in 52.204-10 (g) for contractors and subcontractors who had gross income in the previous tax year under $300,000.