Number:  113-1
Date:  May 7, 2013


House Passes H.R. 882
The Contracting and Tax Accountability Act of 2013

On April 15, 2013, the House passed H.R. 882, the Contracting and Tax Accountability Act of 2013 under suspension of the rules by a vote of 407-0.  The bill would prohibit individuals and companies with outstanding tax debt from receiving government contracts.  The bill now moves to the Senate for further action.

Following are provisions of interest to SSA:

  • Would require bidders for contracts over $150,000 (the current simplified acquisition threshold) to submit a form certifying that they do not have a seriously delinquent tax debt, and authorizing the Department of Treasury to disclose to the bidding agency information verifying such certification.  Seriously delinquent taxpayers would be those to whom a lien has been filed in public records and are not paying the debt in a timely manner or have not initiated a due process hearing.
  • Would require agencies to suspend or debar such bidders with a seriously delinquent tax debt, unless the agency head executes a written waiver due to compelling circumstances.  Would require in such case, that the agency head submit a report to Congress justifying the waiver within 30 days of issuing the waiver.
  • Would apply the same requirements in this bill for Federal grant applicants, with the exception that seriously tax delinquent applicants would be placed in a “high risk” category (rather than be banned), which would trigger enhanced reporting and oversight if they are awarded a grant. 
  • Would apply to contracts and grants awarded on or after 270 days after date of enactment.