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Posted by on Jul 24, 2015

FAPIIS is Here – What You Need to Know

FAPIIS is Here – What You Need to Know

Blog Image_Grants News (2)On July 22, 2015, the Office of Management and Budget (OMB) released the final rule to implement the Federal Awardee Performance Integrity Information System (FAPIIS) for Federal grant awards. FAPIIS is a system designed to ensure Federal awards are issued to reliable and qualified recipients by providing award officials with information pertaining to the past performance of applicants. The final rule is implemented by amending 2 CFR 200 and 2 CFR 180.

Beginning on January 1, 2016, Federal awarding officials are required to review FAPIIS as part of a pre-award risk assessment before making a grant award greater than $150,000. During the FAPIIS review, agency officials will determine if an applicant is “qualified” or “not qualified” to receive an award. Federal awarding agencies will be required to notify grant applicants if they have been deemed “not qualified” for an award.

The “qualified” and “not qualified” designation is award-specific. The Federal Register notice explains:

It is possible for a Federal awarding agency to determine that a non-Federal entity is not qualified for one award and, depending on the reasons for that first determination, qualified for another award. For example, a Federal awarding agency may determine that a non-Federal entity is: (1) Not qualified for a Federal award for a large and complex program, due to information in the designated integrity and performance system indicating an unsatisfactory record for performing under Federal awards for programs of that level of complexity; and (2) qualified for a second Federal award to carry out a simpler program. Further, Federal awarding agencies may make a Federal award to a recipient who does not fully meet these standards, if there are specific conditions that can appropriately mitigate the effects of the non-Federal entity’s risk in accordance with § 200.207.

It is important to note that in addition to reviewing FAPIIS, Federal awarding agencies must still verify recipient eligibility through the SAM Exclusion Extract.

FAPIIS is a publicly accessible website. Grant applicants should review the information in FAPIIS about their entity before submitting an application. Grant applicants have the opportunity to submit a response about any information about their entity contained in FAPIIS.

As a result of the final rule, 2 CFR 200 has been amended in multiple places, including:

  • 2 CFR 200.205 has been revised to require Federal agencies to review FAPIIS as part of the pre-award risk assessment before making an award in excess of the simplified acquisition threshold.
  • 2 CFR 200.212 now details the reporting requirements for agencies when a grant applicant has been determined to be “not qualified” for a Federal award.
  • 2 CFR 200.213 contains information regarding suspension and debarment which was previously found at 2 CFR 200.212.
  • 2 CFR 200.339 and 2 CFR 200.340 provide information regarding an agency’s responsibility to the termination of an award to FAPIIS.
  • Appendix XII has been added to 2 CFR 200 to explain the award term and condition for recipient reporting on integrity and performance matters.

The new requirements are not applicable to pass-through entities. However, since FAPIIS is publically available, pass-through entities may want to review the system before making a subaward.

OMB and Federal awarding agencies are expected to provide additional information in the coming months before FAPIIS becomes a reality for grant awards. Stay tuned for additional information!

Do you have any questions about the new FAPIIS requirements? If so, leave a comment below and we will answer your questions.

 

2 Comments

  1. Do architect/engineering firms have to register with FAPIIS? If so, how do you register?

    • Bruce,

      FAPIIS is a database that is maintained by federal agencies. Non-federal entities (NFEs) do not register with FAPIIS; however, to receive federal financial assistance, NFEs do need to be registered in SAM.gov.

      Hope that helps,
      Shane Jernigan

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