Procurement policy office surveys agencies on tax-delinquent contractors

The Office of Federal Procurement Policy has sent a survey to senior agency acquisition officials to evaluate how contracting staff and officials responsible for suspension and debarment handle tax-delinquent contractors.

President Obama in a January memo directed the Office of Management and Budget to assess procedures in place for dealing with noncompliant contractors and to recommend improvements by April 20.

To meet these requirements, OFPP developed and released a survey designed to gather information on agency policies and practices regarding tax-delinquent contractors. The survey asks agencies to report on their existing internal policies and controls regarding receipt of and response to contractor certifications of delinquency.

OFPP aims to get a sense of who is responsible for handling delinquent contractors and what tools they have at their disposal. The survey also will provide OFPP with concrete data on how many contracts and dollars were awarded to contractors who have failed to pay taxes.

The survey not only asks agencies to report on delinquent contractors who've received contracts, but also on actions taken "to protect the government's interest" when dealing with those contractors. In cases where officials did not take action, the survey asks why.

Survey results will help paint a picture of the type of contractors denied access to the federal marketplace due to tax delinquency. The questionnaire asks that officials report on any awards denied to contractors with tax delinquent certifications and how many of those contractors were small businesses.

OFPP Administrator Daniel Gordon wrote in the memo that contracting officials must have access to information that allows them to make informed judgments about contractors' tax status.

"This information is an important element in establishing if the contractor has a satisfactory record of integrity and business ethics -- a prerequisite to doing work for the government and our taxpayers," Gordon wrote.

The survey will help the Obama administration understand if contracting officers and other acquisition officials have access to that crucial information. Responses are due by March 17.

Gordon noted the Internal Revenue Service also is looking into this issue by reviewing the accuracy of certifications showing contractors are not in arrears on their taxes. The IRS commissioner's report is due to the president by April 20.