69–006 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 110–578 

CONTRACTING AND TAX ACCOUNTABILITY ACT OF 2008 

APRIL 10, 2008.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. WAXMAN, from the Committee on Oversight and Government 

Reform, submitted the following 

R E P O R T 

together with 

ADDITIONAL VIEWS 

[To accompany H.R. 4881] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Oversight and Government Reform, to whom 

was referred the bill (H.R. 4881) to prohibit the awarding of a contract or grant in excess of the simplified acquisition threshold unless the prospective contractor or grantee certifies in writing to the 

agency awarding the contract or grant that the contractor or grantee has no seriously delinquent tax debts, and for other purposes, 

having considered the same, report favorably thereon with an 

amendment and recommend that the bill as amended do pass. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 3 

Background and Need for Legislation .................................................................... 3 

Legislative History .................................................................................................. 4 

Section-by-Section .................................................................................................... 5 

Explanation of Amendments ................................................................................... 6 

Committee Consideration ........................................................................................ 6 

Rollcall Votes ............................................................................................................ 6 

Application of Law to the Legislative Branch ....................................................... 6 

Statement of Oversight Findings and Recommendations of the Committee ...... 6 

Statement of General Performance Goals and Objectives .................................... 6 

Constitutional Authority Statement ...................................................................... 6 

Federal Advisory Committee Act ............................................................................ 7 

Unfunded Mandates Statement .............................................................................. 7 

Committee Estimate ................................................................................................ 7 

Earmark Identification ............................................................................................ 7 


wwoods2 on PRODPC68 with REPORTS
2 

Budget Authority and Congressional Budget Office Cost Estimate .................... 7 

Changes in Existing Law Made by the Bill, as Reported ..................................... 9 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Contracting and Tax Accountability Act of 2008’’. 

SEC. 2. GOVERNMENTAL POLICY. 

It is the policy of the United States Government that no Government contracts 

or grants should be awarded to individuals or companies with seriously delinquent 

Federal tax debts. 

SEC. 3. PROHIBITION ON AWARDING OF CONTRACTS TO DELINQUENT FEDERAL DEBTORS. 

Section 3720B of title 31, United States Code, is amended— (1) in the section heading, by adding at the end ‘‘OR CONTRACTS’’; 

(2) by adding at the end the following: ‘‘(c)(1) Unless this subsection is waived by the head of a Federal agency, a person 

who has a seriously delinquent tax debt shall be proposed for debarment from any 

contract awarded by the Federal Government. ‘‘(2) The head of any Federal agency that issues an invitation for bids or a request 

for proposals for a contract in an amount greater than the simplified acquisition 

threshold (as defined in section 4(11) of the Office of Federal Procurement Policy 

Act (41 U.S.C. 401(11)) shall require each person that submits a bid or proposal to 

submit with the bid or proposal a form— ‘‘(A) certifying that the person does not have a seriously delinquent tax debt; 

and ‘‘(B) authorizing the Secretary of the Treasury to disclose to the head of the 

agency information limited to describing whether the person has a seriously delinquent tax debt. ‘‘(3) The Secretary shall make available to all Federal agencies a standard form 

for the certification and authorization described in paragraph (2). ‘‘(4) Not later than 270 days after the date of enactment of this subsection, the 

Federal Acquisition Regulation shall be revised to incorporate the requirements of 

this subsection. ‘‘(5) For purposes of this subsection: ‘‘(A) The term ‘contract’ means a binding agreement entered into by a Federal 

agency for the purpose of obtaining property or services, but does not include— ‘‘(i) a contract designated by the head of the agency as assisting the agency in the performance of disaster relief authorities; or ‘‘(ii) a contract designated by the head of the agency as necessary to the 

national security of the United States. ‘‘(B)(i) The term ‘person’ includes— ‘‘(I) an individual; 

‘‘(II) a partnership; and 

‘‘(III) a corporation. 

‘‘(ii) A partnership shall be treated as a person with a seriously delinquent 

tax debt if such partnership has a partner who—

‘‘(I) holds an ownership interest of 50 percent or more in that partnership; and 

‘‘(II) who has a seriously delinquent tax debt. 

‘‘(iii) A corporation shall be treated as a person with a seriously delinquent 

tax debt if such corporation has an officer or a shareholder who—

‘‘(I) holds 50 percent or more, or a controlling interest that is less than 

50 percent, of the outstanding shares of corporate stock in that corporation; 

and 

‘‘(II) who has a seriously delinquent tax debt. 

‘‘(C)(i) The term ‘seriously delinquent tax debt’ means an outstanding debt 

under the Internal Revenue Code of 1986 for which a notice of lien has been 

filed in public records pursuant to section 6323 of such Code. 

‘‘(ii) Such term does not include—

‘‘(I) a debt that is being paid in a timely manner pursuant to an agreement under section 6159 or section 7122 of such Code; and 

‘‘(II) a debt with respect to which a collection due process hearing under 

section 6330 of such Code, or relief under subsections (a), (b), or (f) of section 6015 of such Code, is requested or pending.’’. 

SEC. 4. PROHIBITION ON AWARDING OF GRANTS TO DELINQUENT FEDERAL DEBTORS. 

(a) IN GENERAL.—The head of any Executive agency that offers a grant in excess 

of an amount equal to the simplified acquisition threshold (as defined in section 


wwoods2 on PRODPC68 with REPORTS
3 

4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 401(11)) may not 

award such grant to any person unless such person submits with the application 

for such grant a form— (1) certifying that the person does not have a seriously delinquent tax debt; 

and 

(2) authorizing the Secretary of the Treasury to disclose to the head of the 

Executive agency information limited to describing whether the person has a seriously delinquent tax debt. 

(b) RELEASE OF INFORMATION.—The Secretary shall make available to all Executive agencies a standard form for the certification and authorization described in 

subsection (a)(2). 

(c) REVISION OF REGULATIONS.—Not later than 270 days after the date of the enactment of this section, the Director of the Office of Management and Budget shall 

revise such regulations as necessary to incorporate the requirements of this section. 

(d) DEFINITIONS AND SPECIAL RULES.—For purposes of this section: 

(1) PERSON.— (A) IN GENERAL.—The term ‘‘person’’ includes— (i) an individual; 

(ii) a partnership; and 

(iii) a corporation. 

(B) TREATMENT OF CERTAIN PARTNERSHIPS.—A partnership shall be treated as a person with a seriously delinquent tax debt if such partnership has 

a partner who— (i) holds an ownership interest of 50 percent or more in that partnership; and 

(ii) who has a seriously delinquent tax debt. 

(C) TREATMENT OF CERTAIN CORPORATIONS.—A corporation shall be treated as a person with a seriously delinquent tax debt if such corporation has 

an officer or a shareholder who— (i) holds 50 percent or more, or a controlling interest that is less than 

50 percent, of the outstanding shares of corporate stock in that corporation; and 

(ii) who has a seriously delinquent tax debt. 

(2) EXECUTIVE AGENCY.—The term ‘‘executive agency’’ has the meaning given 

such term in section 4 of the Office of Federal Procurement Policy Act (41 

U.S.C. 403). 

(3) SERIOUSLY DELINQUENT TAX DEBT.— (A) IN GENERAL.—The term ‘‘seriously delinquent tax debt’’ means an outstanding debt under the Internal Revenue Code of 1986 for which a notice 

of lien has been filed in public records pursuant to section 6323 of such 

Code. 

(B) EXCEPTIONS.—Such term does not include—

(i) a debt that is being paid in a timely manner pursuant to an agreement under section 6159 or section 7122 of such Code; and 

(ii) a debt with respect to which a collection due process hearing 

under section 6330 of such Code, or relief under subsections (a), (b), or 

(f) of section 6015 of such Code, is requested or pending. 

PURPOSE AND SUMMARY

H.R. 4881, the Contracting and Tax Accountability Act of 2008, 

was introduced by Rep. Brad Ellsworth and Rep. Edolphus Towns, 

the Chairman of the Subcommittee on Government Management, 

Organization, and Procurement, on December 19, 2007. H.R. 4881 

establishes a process through which persons with seriously delinquent federal tax debts may be prohibited from receiving federal 

contracts and grants. 

BACKGROUND AND NEED FOR LEGISLATION

Contractors owe the federal government billions of dollars in delinquent taxes, and the Contracting and Tax Accountability Act is 

designed to mandate that tax compliance be a prerequisite for receiving a federal contract. In 2004 and 2005, GAO reported that 

government contractors owed over $5 billion in unpaid federal 

taxes. 


wwoods2 on PRODPC68 with REPORTS
4 

According to the GAO, the contractors are typically closely-held 

businesses with unpaid payroll and corporate income taxes. These 

payroll taxes include amounts withheld from employee wages for 

Social Security, Medicare, and individual income taxes, but never 

remitted to the Internal Revenue Service (IRS). Many of the contractors have repeatedly failed to fulfill their tax obligations and 

have delinquencies that extend over multiple tax periods. GAO also 

identified instances in which companies that are delinquent in 

their taxes have won contracts by submitting lower offers than 

companies that comply with tax obligations. 

This bill will encourage contractors wishing to do business with 

the government to comply with the nation’s tax laws, thereby reducing the level of tax delinquencies and promoting compliance. 

This bill will also afford companies that do comply with tax responsibilities a fair opportunity to compete for contracts. 

LEGISLATIVE HISTORY

H.R. 4881 was introduced by Reps. Ellsworth and Towns on December 19, 2007, and referred to the Committee on Oversight and 

Government Reform. 

H.R. 4881 combines elements of two other bills on contractor tax 

compliance: H.R. 1870, the Contractor Tax Enforcement Act, which 

was introduced by Rep. Towns on April 17, 2007, and H.R. 1986, 

the Federal Contractor Accountability Act of 2007, which was introduced by Rep. Ellsworth on April 20, 2007. 

The Subcommittee on Government Management, Organization, 

and Procurement held a hearing on H.R. 1870 and H.R. 1986 on 

April 19, 2007. The witnesses were Paul A. Denett, Administrator 

for Federal Procurement Policy, Office of Management and Budget; 

Russell George, Treasury Inspector General for Tax Administration, Internal Revenue Service; and Gregory D. Kutz, Managing Director, Forensic Audits and Special Investigations, U.S. Government Accountability Office. 

The Subcommittee on Government Management, Organization, 

and Procurement held a hearing on H.R. 4881 on February 27, 

2008. The witnesses were Paul A. Denett, Administrator for Federal Procurement Policy, Office of Management and Budget; John 

Hutton, Director, Acquisition and Sourcing Management, U.S. Government Accountability Office; Marcia Madsen, Chair, Acquisition 

Advisory Panel; Scott Amey, General Counsel, Project on Government Oversight; and Alan Chvotkin, Senior Vice President and 

Counsel, Professional Services Council. 

The Subcommittee on Government Management, Organization, 

and Procurement held a markup to consider H.R. 4881 on March 

11, 2008, and ordered the bill to be reported, as amended, by voice 

vote. The Committee on Oversight and Government Reform held a 

markup to consider H.R. 4881 on March 13, 2008, and ordered the 

bill to be reported by voice vote. 

SECTION-BY-SECTION

Section 1: Short title 

The short title of the bill is the Contracting and Tax Accountability Act of 2007. 


wwoods2 on PRODPC68 with REPORTS
5 

Section 2: Governmental policy 

This section states that the policy of the United States is that no 

government contracts or grants should be awarded to individuals 

or companies with seriously delinquent Federal tax debts. 

Section 3: Prohibition on awarding of contracts to delinquent federal debtors 

This section establishes procedures through which persons with 

seriously delinquent tax debts may be debarred from federal contracts. It requires that bids or proposals for federal contracts include a certification that the person does not have a seriously delinquent tax debt and an authorization to verify this certification 

with the Secretary of the Treasury. It requires the Secretary of the 

Treasury to develop a standard form, and the Federal Acquisition 

Regulation to be revised to require the certification and authorization. ‘‘Contract’’ is defined as a binding agreement entered into by a 

federal agency for the purpose of obtaining property or services. 

Contracts designated as necessary to disaster relief or national security are exempted from the requirements of this section. 

A ‘‘person’’ subject to the requirements of this section includes an 

individual; a partnership; a corporation; a partnership in which a 

partner with an ownership interest of 50 percent or more has a seriously delinquent tax debt; and a corporation in which an officer 

or shareholder who holds 50 percent or more, or a controlling interest that is less than 50 percent of the outstanding shares of corporate stock in that corporation has a seriously delinquent tax 

debt. ‘‘Seriously delinquent tax debt’’ is defined as an outstanding debt 

under the Internal Revenue Code of 1986 for which a notice of lien 

has been filed in public records. The term excludes tax debt that 

is being repaid pursuant to an installment agreement and tax debt 

for which a collection due process hearing or innocent spouse relief 

has been requested. 

Section 4: Prohibition on awarding of grants to delinquent federal 

debtors 

This requires that grant applications include a certification that 

the person does not have a seriously delinquent tax debt and an 

authorization to verify this certification with the Secretary of the 

Treasury. It requires the Secretary of the Treasury to develop a 

standard form, and the Director of the Office of Management and 

Budget to issue regulations to require the certification and authorization. 

A ‘‘person’’ subject to the requirements of this section includes an 

individual; a partnership; a corporation; a partnership in which a 

partner with an ownership interest of 50 percent or more has a seriously delinquent tax debt; and a corporation in which an officer 

or shareholder who holds 50 percent or more, or a controlling interest that is less than 50 percent, of the outstanding shares of corporate stock in that corporation has a seriously delinquent tax 

debt. 

‘‘Seriously delinquent tax debt’’ is defined as an outstanding debt 

under the Internal Revenue Code of 1986 for which a notice of lien 

has been filed in public records. The term excludes tax debt that 


wwoods2 on PRODPC68 with REPORTS
6 

is being repaid pursuant to an installment agreement and tax debt 

for which a collection due process hearing or innocent spouse relief 

has been requested. 

EXPLANATION OF AMENDMENTS

The following amendments were adopted in the Subcommittee on 

Government Management, Organization, and Procurement: 

Mr. Towns offered an amendment in the nature of a substitute. 

The amendment clarified that the requirements of section 3 apply 

only to contracts in an amount exceeding the simplified acquisition 

threshold, and made technical corrections. 

The Towns amendment in the nature of a substitute passed by 

voice vote. 

COMMITTEE CONSIDERATION

On Thursday, March 13, 2008, the Committee met in open session and favorably ordered H.R. 4881 to be reported to the House 

by a voice vote. 

ROLLCALL VOTES

No rollcall votes were held. 

APPLICATION OF LAW TO THE LEGISLATIVE BRANCH

Section 102(b)(3) of Public Law 104–1 requires a description of 

the application of this bill to the legislative branch where the bill 

relates to terms and conditions of employment or access to public 

services and accommodations. The bill does not relate to employment or access to public services and accommodations. 

STATEMENT OF OVERSIGHT FINDINGS AND RECOMMENDATIONS OF

THE COMMITTEE

In compliance with clause 3(c)(1) of rule XIII and clause 2(b)(1) 

of rule X of the Rules of the House of Representatives, the Committee’s oversight findings and recommendations are reflected in the 

descriptive portions of this report. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

In accordance with clause 3(c)(4) of rule XIII of the Rules of the 

House of Representatives, the Committee’s performance goals and 

objectives are reflected in the descriptive portions of this report, including promoting fairness in federal procurement. 

CONSTITUTIONAL AUTHORITY STATEMENT

Under clause 3(d)(1) of rule XIII of the Rules of the House of 

Representatives, the Committee must include a statement citing 

the specific powers granted to Congress to enact the law proposed 

by H.R. 4881. Article I, Section 8, Clause 18 of the Constitution of 

the United States grants the Congress the power to enact this law. 


wwoods2 on PRODPC68 with REPORTS
7 

FEDERAL ADVISORY COMMITTEE ACT

The Committee finds that the legislation does not establish or 

authorize the establishment of an advisory committee within the 

definition of 5 U.S.C. App., Section 5(b). 

UNFUNDED MANDATES STATEMENT

Section 423 of the Congressional Budget and Impoundment Control Act (as amended by Section 101(a)(2) of the Unfunded Mandates Reform Act, P.L. 104–4) requires a statement on whether the 

provisions of the report include unfunded mandates. In compliance 

with this requirement the Committee has received a letter from the 

Congressional Budget Office included herein. 

EARMARK IDENTIFICATION

H.R. 4881 does not include any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9(d), 9(e), 

or 9(f) of rule XXI. 

COMMITTEE ESTIMATE

Clause 3(d)(2) of rule XIII of the Rules of the House of Representatives requires an estimate and a comparison by the Committee of the costs that would be incurred in carrying out H.R. 

4881. However, clause 3(d)(3)(B) of that rule provides that this requirement does not apply when the Committee has included in its 

report a timely submitted cost estimate of the bill prepared by the 

Director of the Congressional Budget Office under section 402 of 

the Congressional Budget Act. 

BUDGET AUTHORITY AND CONGRESSIONAL BUDGET OFFICE COST

ESTIMATE

With respect to the requirements of clause 3(c)(2) of rule XIII of 

the Rules of the House of Representatives and section 308(a) of the 

Congressional Budget Act of 1974 and with respect to requirements 

of clause 3(c)(3) of rule XIII of the Rules of the House of Representatives and section 402 of the Congressional Budget Act of 1974, the 

Committee has received the following cost estimate for H.R. 4881 

from the Director of the Congressional Budget Office: 

APRIL 10, 2008. 

Hon. HENRY A. WAXMAN, Chairman, Committee on Oversight and Government Reform, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 4881, the Contracting and 

Tax Accountability Act of 2008. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Matthew Pickford. 

Sincerely, 

PETER R. ORSZAG. 

Enclosure. 


wwoods2 on PRODPC68 with REPORTS
8 

H.R. 4881—Contracting and Tax Accountability Act of 2008 

Summary: H.R. 4881 would prohibit federal agencies from 

awarding contracts to persons or companies that have failed to pay 

their federal taxes. Additionally, under the bill, certain contractors 

and grantees that receive federal funds would have to certify that 

they do not have federal tax debt, and the Internal Revenue Service (IRS) would be authorized to confirm or refute those claims for 

the federal agencies involved. 

CBO estimates that implementing H.R. 4881 would cost $5 million in 2009 and $14 million over the 2009–2013 period, assuming 

appropriation of the necessary amounts. The Joint Committee on 

Taxation (JCT) estimates that the legislation would have a negligible effect on revenues. H.R. 4881 contains no intergovernmental 

or private-sector mandates as defined in the Unfunded Mandates 

Reform Act (UMRA) and would not affect the budgets of state, 

local, or tribal governments. 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 4881 is shown in the following table. The cost 

of this legislation falls within budget function 800 (general government). 

By fiscal year, in millions of dollars— 

2009 2010 2011 2012 2013 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Estimated Authorization Level ................................................................................ 5 3 2 2 2 

Estimated Outlays ................................................................................................... 5 3 2 2 2 

Basis of estimate: For this estimate, CBO assumes that the bill 

will be enacted near the start of fiscal year 2009, that the necessary funds will be provided for each year, and that spending will 

follow historical patterns for similar programs. 

According to the Office of Management and Budget and the General Services Administration, the government currently collects information on contractors and grants through a variety of databases. 

In addition, the IRS has a database regarding tax liens and already 

provides tax-debt information to the Treasury Department’s Offset 

Program, which withholds or reduces certain federal payments to 

collect delinquent tax and nontax debt owed to federal agencies. 

Using that information, CBO estimates that updating and combining the databases to meet the bill’s requirements would cost 

about $5 million in 2009 and $14 million over the 2009–2013 period. This would include costs to create regulations, provide training to federal employees, and update and maintain the databases. 

Intergovernmental and private-sector impact: H.R. 4881 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA and would not affect the budgets of state, local, or tribal 

governments. 

Estimate prepared by: Federal costs: Matthew Pickford; Impact 

on state, local, and tribal governments: Elizabeth Cove; Impact on 

the private sector: Paige Piper/Bach. 

Estimate approved by: Peter H. Fontaine, Assistant Director for 

Budget Analysis. 


wwoods2 on PRODPC68 with REPORTS
9 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

TITLE 31, UNITED STATES CODE 

* * * * * * * 

Subtitle III—FINANCIAL MANAGEMENT 

* * * * * * * 

CHAPTER 37—CLAIMS 

* * * * * * * 

SUBCHAPTER II—CLAIMS OF THE UNITED STATES 

GOVERNMENT 

* * * * * * * 

§ 3720B. Barring delinquent Federal debtors from obtaining 

Federal loans or loan insurance guarantees or contracts 

(a) * * * 

* * * * * * * 

(c)(1) Unless this subsection is waived by the head of a Federal 

agency, a person who has a seriously delinquent tax debt shall be 

proposed for debarment from any contract awarded by the Federal 

Government. 

(2) The head of any Federal agency that issues an invitation for 

bids or a request for proposals for a contract in an amount greater 

than the simplified acquisition threshold (as defined in section 4(11) 

of the Office of Federal Procurement Policy Act (41 U.S.C. 401(11)) 

shall require each person that submits a bid or proposal to submit 

with the bid or proposal a form— (A) certifying that the person does not have a seriously delinquent tax debt; and 

(B) authorizing the Secretary of the Treasury to disclose to 

the head of the agency information limited to describing whether the person has a seriously delinquent tax debt. 

(3) The Secretary shall make available to all Federal agencies a 

standard form for the certification and authorization described in 

paragraph (2). 

(4) Not later than 270 days after the date of enactment of this 

subsection, the Federal Acquisition Regulation shall be revised to 

incorporate the requirements of this subsection. 

(5) For purposes of this subsection: 

(A) The term ‘‘contract’’ means a binding agreement entered 

into by a Federal agency for the purpose of obtaining property 

or services, but does not include—

(i) a contract designated by the head of the agency as assisting the agency in the performance of disaster relief authorities; or 


wwoods2 on PRODPC68 with REPORTS
10 

(ii) a contract designated by the head of the agency as 

necessary to the national security of the United States. 

(B)(i) The term ‘‘person’’ includes— (I) an individual; 

(II) a partnership; and 

(III) a corporation. 

(ii) A partnership shall be treated as a person with a seriously delinquent tax debt if such partnership has a partner 

who—(I) holds an ownership interest of 50 percent or more in 

that partnership; and 

(II) who has a seriously delinquent tax debt. 

(iii) A corporation shall be treated as a person with a seriously delinquent tax debt if such corporation has an officer or 

a shareholder who— (I) holds 50 percent or more, or a controlling interest that 

is less than 50 percent, of the outstanding shares of corporate stock in that corporation; and 

(II) who has a seriously delinquent tax debt. 

(C)(i) The term ‘‘seriously delinquent tax debt’’ means an outstanding debt under the Internal Revenue Code of 1986 for 

which a notice of lien has been filed in public records pursuant 

to section 6323 of such Code. 

(ii) Such term does not include— (I) a debt that is being paid in a timely manner pursuant 

to an agreement under section 6159 or section 7122 of such 

Code; and 

(II) a debt with respect to which a collection due process 

hearing under section 6330 of such Code, or relief under 

subsections (a), (b), or (f) of section 6015 of such Code, is 

requested or pending. 

* * * * * * * 


wwoods2 on PRODPC68 with REPORTS
(11) 

ADDITIONAL VIEWS OF RANKING MEMBER TOM DAVIS 

H.R. 4881 would subject any firm that has a seriously delinquent 

tax debt—defined to mean any time the Internal Revenue Service 

has filed a tax lien against the company—to a debarment proceeding with the aim of preventing the firm from obtaining a government contract or grant. 

Potential contractors and grant recipients must certify that the 

company does not have any ‘‘seriously delinquent tax debt’’ in order 

to be eligible for federal grants and contracts. 

This is a reasonable requirement. 

In fact, the Administration is currently finalizing a regulation 

that would require federal contractors and grantees to certify, 

among other things, that they have not been notified by the IRS 

of liability for delinquent taxes. The proposed regulation would also 

include the failure to pay taxes as a specific cause for a company 

to be debarred from receiving federal contracts. 

Since the issue addressed in H.R. 4881 is already being addressed through the regulatory process it is not totally clear to me 

what we are accomplishing with this legislation, Nevertheless I 

have no real objection and therefore supported the legislation in 

Committee. 

I do hope, however, that the majority would spend more time on 

matters that would address the problems facing the acquisition system like providing our acquisition workforce with better tools and 

training. H.R. 4881 does nothing to improve our ability to obtain 

the best value goods and services so urgently needed to operate our 

government. It will not remedy poorly defined requirements or provide us with a sufficient number of federal acquisition personnel 

with the right skills to select the best contractor and manage performance. 

TOM DAVIS. 

Æ 


wwoods2 on PRODPC68 with REPORTS