Mar 25, 2010

Thomas Marcinko

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Government Creates “Bad Contractor” Database

The FAR council issued a final rule on March 23rd that established the Federal Awardee Performance & Integrity Information System, (FAPIIS).  FAPIIS is being implemented in response to a requirement contained in the 2009 Defense Authorization Act. 

FAPIIS is designed to be a comprehensive database containing information on contractor responsibility, performance, and integrity.  The database will include information from the Excluded Parties List, the Past Performance Information Retrieval System, nonresponsiblity determinations, terminations for default, defective pricing determinations, criminal convictions, and civil liabilities.  FAPIIS will obtain this information from existing databases, contracting officers, and suspension and debarment officials.  Also, any contractor submitting a proposal  that exceeds $500,000 and having more than $10 million in active contracts and grants as of the time of proposal submission, must report in FAPIIS information pertaining to criminal, civil and administrative
proceedings through which a requisite determination of fault was made.

Companies will be notified when information is added to their FAPIIS record and will have the right to post comments which will be included in the record.  Contracting Officers must, (1) review the FAPIIS database prior to awarding contracts in excess of  the simplified acquisition threshold, (2) document how the information in FAPISS was used, and (3) notify the suspension and debarment officials if the FAPIIS information seems to warrant such drastic action. 

In response to industry concerns, FAPIIS will not be open to the public.  In the future, the Government plans to add contracts with state governments, reduce the threshold for FAPIIS reporting, and include information on crimes that aren’t directly related to government contracting.