Government Contracts Rule Adds DoD Requirements for Service Contract Data Collection
Monday, August 2, 2021

Rule Adds DoD Requirements for Service Contract Data Collection

By Government Contracts Editorial Staff

A final rule amends the Defense Federal Acquisition Regulation Supplement to implement a requirement for the collection of data on certain Department of Defense service contracts. The rule implements 10 USC 2330a, as amended by section 812 of the National Defense Authorization Act for Fiscal Year 2017 (PL 114-328), which required DoD to establish a data collection system to provide certain management information with regard to an awarded contract or task order that has a value exceeding $3 million. The data collection requirement applies to the following service acquisition portfolio groups: logistics management services, equipment-related services, knowledge-based services, and electronics and communications services. FAR Subpart 4.17 (FAR 4.1700 – FAR 4.1705) requires agencies other than DoD to report annually on activities performed by service contractors using the Federal Procurement Data System—an existing source of government contract information—to provide a majority of the information required by 10 USC 2330a.

Governmentwide Approach. The contractor must enter data that is not available in FPDS in the System for Award Management. DoD believes that adopting a governmentwide approach to collecting service contract data reduces burden on both industry and DoD, improves data integrity and accuracy, and reforms DoD’s business practices for greater performance. Accordingly, DoD is adopting the approach used by other agencies to collect service contract data. The rule implements two prior proposed rules with changes. The DFARS Case 2012-D051 rule (¶70,020.346) was issued to implement 10 USC 2330a (section 807 of the NDAA for FY 2008), which required DoD to establish a data collection system to provide certain data on the purchasing of services by DoD and submit to Congress an annual inventory of services contracts awarded by or on behalf of DoD. In response to public comments received to the DFARS Case 2012-D051 rule, DoD issued a second proposed rule, DFARS Case 2018-D063 (¶70,020.452), which implemented section 812 of the NDAA for FY 2017 and amended 10 USC 2330a to narrow the scope of contracts on which the data collection requirement applies. As a result, DFARS Case 2012-D051 was closed and rolled into this new DFARS case to implement 10 USC 2330a, as amended. To carry out the new requirements, the final rule adds DFARS Subpart 204.17, which provides a definition for “first-tier subcontract” (DFARS 204.1700), specifies reporting requirements for both the government and the contractor (DFARS 204.1701), adds reporting requirements (DFARS 204.1703), and prescribes, at DFARS 204.1705, a new contract clause, DFARS 252.204-7023, Reporting Requirements for Contracted Services. DoD also implemented the changes in the DFARS companion resource, Procedures, Guidance, and Information, at PGI 204.1703, Reporting requirements. The rule has a July 9, 2021, effective date. For the text of the final rule, see ¶70,017.66.

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