Grantees Now Subject to FAPIIS Database Reporting

In an update to 2 CFR Part 200, “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards,” recipients of Federal grants and cooperative agreements will be subject to Federal Awardee Performance and Integrity System (FAPIIS) reporting requirements and new mandatory disclosure requirements. Starting January 1, 2016, both awarding agencies and non-federal entities will be required to report performance and integrity information on federal assistance awards, a requirement that has been in place since 2010 for federal contractors.

Background

FAPIIS is focused on increased public access to Federal award information, scrutiny of recipient integrity, and quality of award performance, and is designed to enhance the Government’s ability to consider all available information in connection with award and responsibility determinations. FAPIIS accumulates information from various sources on the eligibility of organizations for Federal awards and is currently available at https://www.fapiis.gov.

This final rule implements Section 872 of the 2009 National Defense Authorization Act, which provides public users one resource to access integrity and performance information from the FAPIIS reporting module in the Contractor Performance Assessment Reporting System (CPARS), proceedings information from the Entity Management section of the System for Award Management (SAM) database, and suspension/debarment information from the Performance Information section of SAM.

FAPIIS will make publicly available the information relating to a contractor’s integrity and will serve as a central repository for performance reviews, suspensions, debarments, non-responsibility determinations, terminations, and civil, criminal, and administrative proceedings.

Government agencies will consider information in the FAPIIS system before making an award to an entity. While FAPIIS will consolidate information about contractor integrity, it will not replace CPARS and the Past Performance Information Retrieval System (PPIRS), and the government will continue to use past performance information in those government-wide systems.

Semiannual Reporting Requirements

 Recipients that have Federal contracts, grants, and cooperative agreement awards with a cumulative total value greater than $10,000,000 must disclose, semiannually, any information about criminal, civil, and administrative proceedings for the most recent five-year period in connection with the award or performance of a grant, cooperative agreement, or procurement contract from the Federal Government:

  • Criminal Conviction – A recipient must disclose any Federal or State proceeding that resulted in a criminal conviction[1].
  • Civil Proceedings – A recipient must disclose any Federal or State civil proceeding that resulted in a finding of fault and liability and payment of a monetary fine, penalty, reimbursement, restitution, or damages of $5,000 or more.
  • Administrative Proceedings – The new guidance defines an “administrative proceeding” as a non-judicial process that is adjudicatory in nature in order to make a determination of fault or liability (e.g., Securities and Exchange Commission Administrative proceedings, Civilian Board of Contract Appeals proceedings, and Armed Services Board of Contract Appeals proceedings). This includes proceedings at the Federal and State levels, but only in connection with performance of a Federal contract or grant that resulted in a finding of fault and liability and payment of either a monetary fine or penalty of $5,000 or more or reimbursement, restitution, or damages in excess of $100,000. It does not include audits, site visits, corrective plans, or inspection of deliverables.

Federal Agency Reporting Requirements

The final guidance requires awarding agencies to report the following types of information in FAPIIS:

  1. Award terminations resulting from a material failure to comply with terms and conditions
  2. Administrative agreements to resolve suspension or debarment proceedings
  3. Any findings that an organization is not fit to receive an award based on its integrity or poor performance history, so long as:
    1. The entity would have otherwise been qualified based on all other factors
    2. The award would have exceeded the $150,000 simplified acquisition threshold

Awarding agencies will also be required to notify[2] recipients if they determine that the organization is unfit for a Federal award.

Generally, information in FAPIIS is publicly available after the 14-day waiting period, except for past performance ratings or information that was withdrawn during the waiting period by the Federal Government official.

Fortunately for recipients, awarding agencies will also be required to correct determinations entered into the system based on erroneous information. Recipients can go to the awardee integrity and performance portal (accessible through SAM) and comment on any information that the system contains about them. The Federal awarding agency is required to correct the information within three business days of learning that it is erroneous.

Implications for Assistance Award Recipients

As a result of this final guidance, newly affected recipients should educate their staff on the new requirement, ensure that their FAPIIS records are closely monitored, and be prepared to quickly identify and respond to any inaccuracies. Recipients should also note the General Services Administration intends to migrate FAPIIS to SAM sometime in the near future.

Federal awarding agencies will begin implementing the final guidance on January 1, 2016, when applicants and recipients will see each agency’s implementation-reflected notices of funding opportunities, as well as new award terms and conditions.


[1] The definition of “conviction” was conformed to the FAR definition to parallel the implementation of section 872 for procurement contracts, rather than conforming to the definition in 2 CFR Part 180.

[2] The notification must specify that the determination:

  1. Was entered into the system
  2. Will be kept in the system for five years
  3. Will be considered by other awarding agencies
  4. May be commented on by the recipient