Existing Procurement Practices Allowed Corporations With Federal Tax Debt to Obtain Contract Awards

The Chief, Agency-Wide Shared Services, should update current IRS procurement policies and procedures to reflect Department of the Treasury requirements.

The Chief, Agency-Wide Shared Services, should ensure that specific language is inserted in all solicitations requiring contractors to assert whether or not they have certain Federal tax debt and/or felony convictions.

The Chief, Agency-Wide Shared Services, should ensure that the self-certifications are obtained and reviewed prior to awarding contract actions, and when Federal tax debt and/or a felony conviction is declared by the prospective contractor, ensure that a referral to the Department of the Treasury Suspension and Debarment official is made and a written determination is received prior to awarding contract actions.

The Chief Financial Officer, in consultation with IRS Counsel and the Small Business and Self-Employed Division, should develop procedures to determine what constitutes an unpaid Federal tax liability that is consistent with the definition outlined in the Act. Once a determination of what constitutes an unpaid Federal tax liability has been developed, provide such information to the contracting officers to use in the conduct of comprehensive tax checks and to the Department of the Treasury Suspension and Debarment official for the purpose of making contract award decisions that are in compliance with the Act.