Unpaid Federal Taxes Will Mean “No Contracts” Under New FAR Provision

Under a new FAR provision effective in February 2016, the Government typically will not enter into a contract with any corporation that has an unpaid Federal tax liability that is not being contested or timely repaid.  The same new FAR provision prohibits the Government, in most cases, from awarding a contract to a company recently convicted of a Federal felony.

The new FAR provision requires a corporate offeror to represent whether it has any unpaid tax liabilities or recent felony convictions.  If the answer to either question is “yes,” the Government cannot award a contract unless it has first considered suspension or debarment of the offeror, and determined that suspension or debarment is unnecessary to protect the Government’s interests.

Continue reading

Bridge Contracts Need Improved Oversight, Says GAO

In a recent GAO review of three agencies’ use of bridge contracts, the agencies in question had “limited or no insight into their use of bridge contracts.”

According to a recent GAO report, a lack of effective guidance for the use of bridge contracts contributed to potential misuse–such as several so-called “bridge” contracts that were longer than three years in duration.

Continue reading

8(a) Subcontracting Limitations: Compliance Oversight Lacking

Compliance with the limitations on subcontracting are not adequately being monitored by the contracting officers responsible for 8(a) contracts, according to a recent GAO report.

After reviewing a representative sample of ten 8(a) contracts, the GAO determined that contracting officers effectively monitored subcontracting limit compliance on two of those contracts.  In other cases, agency contracting officers failed to effectively monitor compliance, even in situations presenting a heightened risk of potential violations–such as where ineligible incumbents were serving as subcontractors.

Continue reading