On March 23, 2010, the Obama Administration issued a final rule regarding the "Federal Awardee Performance and Integrity Information System" ("FAPIIS"), a new compliance database that will result in an unprecedented level of oversight over contractors and grant recipients.  The new database is a clearinghouse that will assist contracting officers in their analysis of the compliance (or non-compliance) status of contractors and grantees. The Administration hopes that FAPIIS will "improve the Government's ability to evaluate the business ethics and expected performance quality of prospective contractors and protect the Government from awarding contracts to contractors that are not responsible sources."


The FAPIIS database provides one-stop access to two existing federal databases: (1) the Excluded Parties List System ("EPLS") and (2) the Past Performance Information Retrieval System ("PPIRS").  Furthermore, FAPIIS will include contracting officers' non-responsibility determinations, contract terminations for default or cause, agency defective pricing determinations, administrative agreements entered into by suspension and debarment officials to resolve a suspension or debarment, and contractor self-reporting of criminal convictions, civil liability, and adverse administrative actions.


Pursuant to the final rule, as part of a responsibility determination, contracting officers must review information in FAPIIS in connection with contracts over the simplified acquisition threshold (currently $100,000), document the contract file to explain how the information in FAPIIS was considered, and notify, prior to proceeding with an award, the agency official responsible for initiating debarment or suspension (if information is identified in FAPIIS that appears appropriate for that official's consideration). Under certain circumstances, contractors and grantees may have an opportunity to demonstrate responsibility prior to a contracting officer's non-responsibility determination.  

FAPIIS also contemplates self-reporting.  Specifically, contractors who submit a proposal for a federal contract over $500,000 who have more than $10 million in active contracts and grants must report in FAPIIS information pertaining to criminal, civil and administrative proceedings through which a requisite determination of fault was made.  A contractor must update the information in FAPIIS on a semi-annual basis for the life of the contract.  

Future Action Related to FAPIIS

Contractors should note that a future version of FAPIIS will collect information in connection with the award or performance of a contract or grant with a state government.  In addition, future proposed rules will recommend lowering the threshold for covered actions that trigger FAPIIS reporting from $500,000 to the simplified acquisition threshold, and expanding a contractor's reporting obligations to include other violations of laws, as opposed to violations only in the context of federal contracts and grants.

Federal government monitoring of contractors' actions has reached historic levels.  For assistance regarding FAPIIS requirements, or any other government contracting questions please contact one of our attorneys.