Sneak Preview: FAPIIS Rule Addresses Terminations, Denials

September 18, 2015 | By Jerry Ashworth | Post a Comment

xgran_bookshot(The following was excerpted from a recent article in the Federal Grants Management Handbook.) Federal agencies that either terminate an award before the end date or deny a proposal based on risk or integrity information will be required to post the termination or denial in the System of Award Management (SAM) at, and make that information publically available for five years, under the recently published final guidance from the Office of Management and Budget (OMB) related to Section 872 of the Duncan Hunter National Defense Authorization Act of 2009 (Pub. L. 110-417). Types of information that federal agencies consider include failure to comply with federal statues, regulations or award terms and conditions, risk assessments and integrity reviews such as criminal, civil and administrative proceedings.

The Duncan Hunter Act, which was previously directed toward federal contractors, created the Federal Awardee Performance and Integrity System (FAPIIS), a federal repository and portal used by federal agencies when considering contract proposals or reviewing contract awards. In a July 22 Federal Register notice of final guidance, OMB extended Section 872 of the Duncan Hunter Act from federal contracts to include federal grants and cooperative agreements. Primarily, the Section 872 guidance requires federal agencies to take extensive measures to review both applicants and recipients based on integrity and prior performance in an OMB-designated integrity and performance system. At this time, FAPIIS is the current designated system, which is a standalone web portal; however, the Section 872 final guidance indicates that FAPIIS is migrating to and the extended use of FAPIIS, or an integrity and performance system like FAPIIS, will apply to contracts, grants and cooperative agreements as of Jan. 1, 2016.

The Section 872 guidance adds provisions, and amends several others, within the OMB’s uniform grant guidance. The requirements from the Section 872 final guidance were immediately incorporated into the language of the Code of Federal Regulations (C.F.R.) under 2 C.F.R Part 180 governing suspension and debarment and in 2 C.F.R Part 200 governing the uniform guidance as of July 30, but are applicable Jan. 1, 2016.

(The full version of this story has now been made available to all for a limited time on Thompson’s Grants Compliance Expert site).


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