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[House Report 110-578]
[From the U.S. Government Publishing Office]

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
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 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.
    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.

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 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.

                     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.

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.

         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

           *       *       *       *       *       *       *

Sec. 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
                  (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.

           *       *       *       *       *       *       *

              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.

                                  
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