Washington D.C. (PRWEB) November 13, 2014
System for Award Management, the main contractor database has incorporated new requirements in the registration process for government contractors in the service industry. The changes are called Service Contracts Reporting (SCR) requirements and are mandatory for SAM selected contractors registered in the service industry. Businesses that sell or resell products and goods will not be affected. However, contractors that do work in the service industry and are currently registered in SAM are encouraged to immediately fill out the SCR requirement questions under the brand new Service Contract Reporting section. SAM determines which businesses are required to file the SCR requirements based on their North American Industry Classification System (NAICS) codes.
SCRs should be submitted by October 31, 2014, so that Contracting Officers can review the data and if necessary, work with the contractor to reconcile any discrepancies prior to the end reporting date on November 30, 2014. Reports will remain editable and contractors will be able to submit any required actions until November 30, 2014. All contractors that have not entered the SCR required changes to their service oriented business by October 31, 2014, can contact US Federal Contractor Registration about updating their registration to make the necessary alternations.
The new amendments to the FAR Subpart 4.17 and Section 743(a) of Division C of the Consolidated Appropriations Act were the main catalysts in the creation of the new SCR requirements in SAM. These changes to SAM help make sure small business contracts are awarded to only small business contractors, and not large corporations. SCRs are required for the following thresholds: cost-reimbursement, time-and-materials, labor-hour service contracts and/or orders with a “Base and All Options Value” at or above the simplified acquisition threshold of $150,000, and FY2014 fixed price service contracts with a “Base and All options Value” of $2.5 million or greater.
According to the SCR requirements, service industry businesses registered in SAM must list their awarded contracts for review in order to determine if their business meets the inventory reporting criteria. All of the awards a contractor provides in the SCR requirements must be predominantly service related as opposed to products, and the contracts must meet or exceed the dollar threshold stipulated in the policy. Businesses that document their contracts in the SCR requirements are asked for Total Amount Invoiced, the Contractor Hours Spent/Labor Hours, DUNS Subcontractor Number, and Number of Subcontract Hours. From the Total Amount Invoiced and the Contractor Hours Spent, SAM will then automatically generate a Full Time Equivalent (FTE) based on the provided totals. SAM divides the Total Contractor Hours Spent by 2,080. So if a contractor inputs 6,240 hours for Total Contractor Hours Spent, SAM would divide 6,240 hours by 2,080 hours to calculate three Full Time Equivalents. According to SAM, each Full Time Equivalent represents 2,080 hours of work.
Once contracts have been entered into the SCR panel of SAM, the contracts will show the Contract Number (PIID), Reference IDV PIID, Place of Performance and if the contract has been properly submitted through the SCR panel. If the contract has been properly entered, the SCR panel will show a ‘Y’ under Submitted. If the service contractor does not see the Service Contract Reporting (SCR) link, then SAM has already pre-determined that they do not have reporting privileges, or they do not have contracts subject to the SCR requirements.
All vendors currently registered in SAM call can 1(877) 252-2700 Ext 1 to speak with an Acquisition Specialist who will help look over a business’s SAM account, and determine if SCR requirements need to be filed. In the case that the SCR requirements are incomplete, US Federal Contractor Registration will assign a Case Manager to the business that requires the mandatory update. The Simplified Acquisition Program clients will automatically enrolled in the SCR updates.