FAR 4.603—Policy.
Plain-English Summary
FAR 4.603 implements the government-wide transparency policy for federal award reporting. It explains that unclassified Federal award data must be publicly accessible under the Federal Funding Accountability and Transparency Act, and it directs executive agencies to use the Federal Procurement Data System (FPDS) to report all unclassified contract actions above the micro-purchase threshold, plus any later modifications that change previously reported contract action report data even if the modification itself is for a smaller dollar amount. The section also covers reporting for assisted acquisitions and direct acquisitions, including the need to identify the Program/Funding Agency and Office Codes that show which agency and office provided the predominant funding, and it ties assisted acquisitions to socioeconomic credit for the requesting agency when applicable. It further requires requesting agencies to provide the proper agency/bureau component code in the written interagency agreement. Finally, it addresses mixed-funding actions by requiring agencies to report only the full appropriated portion of a contract action in FPDS when appropriated and non-appropriated funds are combined. In practice, this section is about accurate, complete, and standardized public reporting so the government can track spending, assign credit correctly, and maintain reliable procurement data.
Key Rules
Public access to award data
All unclassified Federal award data must be publicly accessible. This is the basic transparency requirement that underlies the reporting rules in this section.
FPDS reporting required
Executive agencies must use FPDS to record all unclassified contract actions exceeding the micro-purchase threshold. They must also report modifications that change previously reported contract action report data, regardless of the modification dollar value.
Report assisted and direct acquisitions
Agencies must report assisted acquisitions and direct acquisitions in FPDS and identify the Program/Funding Agency and Office Codes from the applicable agency codes maintained in FPDS. These codes show the agency and office providing the predominant amount of funding.
Socioeconomic credit for assisted acquisitions
For assisted acquisitions, the requesting agency receives socioeconomic credit for meeting agency small business goals, where applicable. This makes correct identification of the requesting agency important for small business goal tracking.
Interagency agreement coding
Requesting agencies must provide the appropriate agency/bureau component code in the written interagency agreement with the servicing agency. This supports accurate FPDS reporting and proper attribution of the action.
Mixed appropriated and non-appropriated funding
When a contract action uses both appropriated and non-appropriated funds, agencies report only the full appropriated portion in FPDS. The non-appropriated portion is not reported as part of the contract action amount in FPDS under this rule.
Responsibilities
Executive Agencies
Use FPDS to maintain publicly available information for all unclassified contract actions above the micro-purchase threshold and for any reportable modifications. Ensure reporting is accurate, complete, and consistent with the funding and acquisition structure of the action.
Awarding Agency
Report assisted acquisitions and direct acquisitions in FPDS, identify the correct Program/Funding Agency and Office Codes, and ensure the reported funding attribution reflects the predominant funding source.
Requesting Agency
For assisted acquisitions, ensure the proper agency/bureau component code is provided in the written interagency agreement and understand that it receives socioeconomic credit for the action where applicable.
Servicing Agency
Work with the requesting agency to support accurate interagency agreement documentation and reporting, including the correct agency/bureau component code and FPDS data elements.
Contracting Officer / Acquisition Staff
Enter or oversee accurate FPDS reporting, determine when a modification changes previously reported data, and ensure mixed-funding actions are reported only for the appropriated portion as required.
Agency Funding/Program Officials
Confirm the correct funding attribution and agency/office codes so the action is reported under the proper Program/Funding Agency and Office Codes.
Practical Implications
FPDS reporting is not limited to the initial award; even small-dollar modifications must be reported if they change previously reported data. A common mistake is assuming only large modifications require updates.
Correct agency and office coding matters because it affects public transparency, funding attribution, and in assisted acquisitions, socioeconomic credit for small business goals.
Interagency agreements should be drafted carefully. If the agency/bureau component code is missing or wrong, the FPDS record may be inaccurate and credit may be misassigned.
For mixed-funding actions, do not report the entire contract value if part of the funding is non-appropriated. The rule requires reporting only the appropriated portion, so overreporting is a compliance risk.
Because the data is publicly accessible, errors can affect not just internal records but also public dashboards, oversight reviews, and agency performance metrics.
Official Regulatory Text
(a) In accordance with the Federal Funding Accountability and Transparency Act of 2006 (Pub. L. 109-282), all unclassified Federal award data must be publicly accessible. (b) Executive agencies shall use FPDS to maintain publicly available information about all unclassified contract actions exceeding the micro-purchase threshold, and any modifications to those actions that change previously reported contract action report data, regardless of dollar value. (c) Agencies awarding assisted acquisitions or direct acquisitions must report these actions and identify the Program/Funding Agency and Office Codes from the applicable agency codes maintained by each agency at FPDS. These codes represent the agency and office that has provided the predominant amount of funding for the contract action. For assisted acquisitions, the requesting agency will receive socioeconomic credit for meeting agency small business goals, where applicable. Requesting agencies shall provide the appropriate agency/bureau component code as part of the written interagency agreement between the requesting and servicing agencies (see 17.502-1 (a)(1)). (d) Agencies awarding contract actions with a mix of appropriated and non-appropriated funding shall only report the full appropriated portion of the contract action in FPDS.