News

Interim Rules Governing Stimulus Issued

The Federal Acquisition Regulation (FAR) Council on March 31 issued several new reporting requirements for contractors and procurement officials disbursing stimulus funds. In addition, the Office of Management and Budget (OMB) published Implementing Guidance for the American Recovery and Reinvestment Act of 2009 on April 3.  The new FAR Interim rules, which apply to all direct-Federal contracts, require the following:
  • Prime contractors who win work funded by the economic recovery package must file detailed public reports to the government on the nature of their work and job creation data;
  • All construction, repair or maintenance projects must use only iron, steel and manufactured goods produced in the United States. The rule provides a number of narrow exceptions and waivers, such as cases when goods are not available domestically, or if the local price is not reasonable;
  • Prohibits nonfederal employers from firing, demoting or discriminating against whistleblowers who alert the government to questionable uses of stimulus funds. Contractors who refuse to abide by this rule will not be eligible for stimulus contracts;
  • Acquisition officials must issue public notices publicizing contract actions worth more than $25,000; and,
  • Provide the Government Accountability Office with the authority to audit both contracts and subcontracts related to the stimulus, and to interview contractor and subcontractor employees. The same rights, except the ability to interview subcontractor workers, are granted to inspectors general.
This updated OMB guidance applies to Recovery projects that are federally-assisted (grants, SRF loans, etc.) rather than directly funded by the federal government. It seeks to clarify many key positions including the applicability of Buy America provisions, and reporting requirements. Updates to the guidance are based on ongoing input received from the public, Congress, state and local government officials, grant and contract recipients and federal personnel. AGC is currently reviewing the rules in detail to ensure they are fair and reasonable for construction contractors performing work funded by the recovery plan. The FAR Council and OMB are both accepting comments on these rules through June 1, 2009.