Medium RiskDFARSEthics

252.204-7023Reporting Requirements for Contracted Services.

Researched by the BidStride Research Team

What This Clause Requires

DFARS 252.204-7023 — Reporting Requirements for Contracted Services.. This clause is part of the Defense Federal Acquisition Regulation Supplement and applies specifically to Department of Defense contracts.

Official Regulation Text

252.204-7023 Reporting Requirements for Contracted Services. Basic. As prescribed in 204.1705(a)(i) and (ii), use the following clause: Reporting Requirements for Contracted Services—Basic (Jul 2021) (a) Definition. As used in this clause— First-tier subcontract means a subcontract awarded directly by the contractor for the purpose of acquiring services for performance of a prime contract. It does not include the contractor's supplier agreements with vendors, such as long-term arrangements for materials or supplies or services that benefit multiple contracts and/or the costs of which are normally applied to a contractor's general and administrative expenses or indirect costs. (b) The Contractor shall report annually, by October 31, at https://www.sam.gov, on the services performed under this contract or order, including any first-tier subcontracts, during the preceding Government fiscal year (October 1-September 30). (c) The Contractor shall report the following information for the contract or order: (1) The total dollar amount invoiced for services performed during the preceding Government fiscal year under the contract or order. (2) The number of Contractor direct labor hours, to include first-tier subcontractor direct labor hours, as applicable, expended on the services performed under the contract or order during the previous Government fiscal year. (d) The Government will review the Contractor's reported information for reasonableness and consistency with available contract information. In the event the Government believes that revisions to the Contractor's reported information are warranted, the Government will notify the Contractor. Upon notification, the Contractor shall revise the reported information or provide the Government with a supporting rationale for the information. (End of clause) Alternate I. As prescribed in 204.1705 (a)(i) and (iii), use the following clause, which substitutes “contract or agreement for each order” in lieu of “contract or order

Source: eCFR, 48 CFR 252.204-7023 (https://www.ecfr.gov/current/title-48/section-252.204-7023)

Compliance Checklist

  • (b) The Contractor shall report annually, by October 31, at https://www.sam.gov, on the services performed under this contract or order, including any first-tier subcontracts, during the preceding Government fiscal year (October 1-September 30).
  • (c) The Contractor shall report the following information for the contract or order: (1) The total dollar amount invoiced for services performed during the preceding Government fiscal year under the contract or order.
  • Upon notification, the Contractor shall revise the reported information or provide the Government with a supporting rationale for the information.
  • As prescribed in 204.1705 (a)(i) and (iii), use the following clause, which substitutes “contract or agreement for each order” in lieu of “contract or order” in paragraph (b) and “order” in lieu of “contract or order” in paragraphs (c) and (c)(1) and (2), and identifies the dollar threshold and service acquisition portfolio groups for which orders under the contract or agreement require service contract reporting.
  • (b) The contractor shall report annually, by October 31, at https://www.sam.gov, on services performed during the preceding Government fiscal year (October 1-September 30) under this contract or agreement for each order, including any first-tier subcontract, which exceeds $3 million for services in the following service acquisition portfolio groups: (1) Logistics management services.
  • (c) The Contractor shall report the following information for the order: (1) The total dollar amount invoiced for services performed during the preceding Government fiscal year under the order.

Flow-Down to Subcontractors

Flow-down required

This clause must be included in subcontracts with no subcontractors where the subcontractor will perform work covered by this clause. Typically appears in contract Section Section I.

Frequently Asked Questions

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This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.