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Subcontractors Face New Rules on Stimulus Jobs

Monday, April 27, 2009

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New rules, effective March 31, 2009, mandate how federal agencies will provide oversight of contractors on federal stimulus projects, including reporting and transparency requirements that apply to subcontractors, according to the American Subcontractors Association.

First, the rules require prime contractors and subcontractors identified as “first-tier subcontractors” working on stimulus projects to provide progress updates, estimates on job creation, and the names and compensation for the five most highly compensated company officers to the Web site, www.FederalReporting.gov.

Second, the rules grant “whistleblower protections” that prohibit employers on stimulus projects from “discharging, demoting or discriminating against an employee” who reports fraud, waste or mismanagement.

Third, the rules give the Government Accountability Office (GAO) and an agency’s inspector general access to any employee or documents associated with a stimulus project when investigating allegations raised by the public.

Finally, the rules implement the law’s “Buy American” provision, which prohibits the use of steel, iron and other manufactured goods not produced in the United States. A contracting officer who deems the Buy American provision too expensive to implement can waive it in certain circumstances.

The ASA is accepting member comments on the rules —, FAR Case 2009–008, FAR Case 2009–009, FAR Case 2009–011, and FAR Case 2009–012 at www.regulations.gov —at GovernmentRelations@asa-hq.com.


Tagged categories: American Subcontractors Association; Economic stimulus; Subcontractors

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