Contractor accepting, receiving, and/or performing for the government

[WC79]

I recently received a question on whether contractors can assist the government in receiving/accepting invoices for the government. I know there are definitely conflict of interest implications with this. But is there anything else out there? Has anyone seen this done before? 

[ji20874]

Is your question based on--

• (1) inherently governmental function concerns;
• (2) organizational conflict of interest concerns; or
• (3) other concerns (please specify)?

[Vern Edwards]

3 hours ago, WC79 said:

I recently received a question on whether contractors can assist the government in receiving/accepting invoices for the government. I know there are definitely conflict of interest implications with this. But is there anything else out there? Has anyone seen this done before? 

I don't know what you mean by "receiving/accepting," but see FAR 7.503, Policy [about contractor performance of inherently governmental functions]

 

Quote

 

(a) Contracts shall not be used for the performance of inherently governmental functions.

(b) Agency decisions which determine whether a function is or is not an inherently governmental function may be reviewed and modified by appropriate Office of Management and Budget officials.

(c) The following is a list of examples of functions considered to be inherently governmental functions or which shall be treated as such. This list is not all inclusive:

* * *

  (17) The collection, control, and disbursement of fees, royalties, duties, fines, taxes, and other public funds, unless authorized by statute, such as 31 U.S.C. 3718 (relating to private attorney collection services), but not including-

                (i) Collection of fees, fines, penalties, costs, or other charges from visitors to or patrons of mess halls, post or base exchange concessions, national parks, and similar entities or activities, or from other persons, where the amount to be collected is easily calculated or predetermined and the funds collected can be easily controlled using standard case management techniques; and

                (ii) Routine voucher and invoice examination.

[Emphasis added.]

 

If "receiving/accepting invoices" entails more than routine invoice receipt and examination, then you  should describe the work.

[C Culham]

You have been lead to the discussion in the FAR regarding "inherently governmental functions".   You have also posed a thought about conflict of interest.  By my read you  might also be with HHS.

With the above start your question involves more detail specifically from policy and effort from with in your Department/agency.   By example HHS is required to do a FAIR Act inventory each FY.    The inventory identifies what positions may be performing inherently government (IH) duties.   So if the intent is to have a contractor take over an effort performed by a position that is classified as inherently governmental that is one thing but if the proposed contract effort takes only some of a positions effort then a further deep dive is needed to determine if the effort is IH.  It gets complicated and I suggest that you may want to include experts from the Department office that has knowledge in FAIR Act inventory  and provide details as you sort out what can be done or not.

Without reference I would offer that if the effort is not IH, the potential of conflict is less, but might still exist depending on whose invoices the contractor would be reviewing/approving.  Contacting your agency ethics office or designated ethics officer would provide great assistance on the question.

Some references that might be of assist to take you deeper in to researching the question specific to the proposed need and agency policy that most likely applies are.....

 https://www.hhs.gov/about/agencies/asa/obmt/about-obmt/index.html     This office appears to be the FAIR Act administrative office.

This thread from years ago is not on point with regard to the specific functions you are wondering about but it does provide detail about inherently governmental.   I have not reviewed the references to determine if they are up to date, again just a starting point.