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Delinquent Federal Debt


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We have a requirements contract for a particular service; while checking SAM prior to issuing the T.O. (as I do each time), I noticed our vendor now has a delinquent Federal debt according to SAM. When I try calling the number provided in SAM (Treasury Office Program Call Center), I am told that the circumstances cannot be discussed with me since I am not in the paying office. Ugh...

Anyone else encounter this on an existing contract? I get that per the Approprations ACT, we cannot enter into a contract with any corporation once all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner (of course we are now aware). Is that where we are once the message has been posted to SAM? Do you go forward with the termination process or just not issue any new Task Orders and allow the contract to die?

Thoughts...

Rob

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Rob,

See FAR 32.1108. If you are paying your T.O.'s with a GPC, then you are required to check the delinquent debt flag indicator in SAM at award and at each T.O. placement. If they show a debt flag, you can't use the GPC as a payment method, but rather would have to insert one of the applicable EFT clauses. You wouldn't terminate. See FAR 32.1108( b ) (2)(iii). There are no controls in place to offset a payment that the contracting office would make with a GPC. However, if paying by "conventional" means (EFT), contract payments due the contractor would be "offset" and used to pay down their debt.

I don't know the specific of any appropriations act that may have additional restrictions.

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