52.209-11 Representation by Corporations Regarding Delinquent Tax Liability or a Felony Conviction under any Federal Law
Source: FAR 52.209-11 on acquisition.gov
Corporations must disclose unpaid federal tax liabilities and recent felony convictions when bidding on federal contracts, or risk being ineligible for award.
Overview
FAR 52.209-11 requires corporations bidding on federal contracts to disclose whether they have any unpaid federal tax liabilities or have been convicted of a felony under federal law within the past 24 months. This provision implements statutory restrictions that prohibit the government from awarding contracts to corporations with certain unresolved tax or felony issues, unless the agency has reviewed the situation and determined that suspension or debarment is not necessary to protect government interests.
Key Rules
- Disclosure Requirement
- Corporations must represent whether they have any unpaid federal tax liability that has been assessed and is not being paid in a timely manner, and whether they have been convicted of a felony under federal law in the past 24 months.
- Prohibition on Award
- The government cannot award contracts to corporations with such tax liabilities or felony convictions unless the agency has considered suspension or debarment and determined it is not necessary.
Responsibilities
- Contracting Officers: Must ensure the provision is included in solicitations and review offeror representations; must not award contracts to non-compliant corporations unless required determinations are made.
- Contractors: Must accurately complete the representation regarding tax liability and felony convictions.
- Agencies: Must consider suspension or debarment for corporations with issues and document determinations if proceeding with award.
Practical Implications
- This provision ensures only responsible corporations receive federal contracts, promoting integrity in government procurement. Contractors must be diligent in self-reporting, and agencies must document any exceptions. Failure to comply can result in ineligibility for contract award or legal consequences for false representations.
As prescribed in 9.104-7(d), insert the following provision:
Representation by Corporations Regarding Delinquent Tax Liability or a Felony Conviction under any Federal Law (Feb 2016)
(a) As required by sections 744 and 745 of Division E of the Consolidated and Further Continuing Appropriations Act, 2015 (Pub. L. 113-235), and similar provisions, if contained in subsequent appropriations acts, the Government will not enter into a contract with any corporation that–
(1) Has any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability, where the awarding agency is aware of the unpaid tax liability, unless an agency has considered suspension or debarment of the corporation and made a determination that suspension or debarment is not necessary to protect the interests of the Government; or
(2) Was convicted of a felony criminal violation under any Federal law within the preceding 24 months, where the awarding agency is aware of the conviction, unless an agency has considered suspension or debarment of the corporation and made a determination that this action is not necessary to protect the interests of the Government.
(b) The Offeror represents that–
(1) It is □ is not □ a corporation that has any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability; and
(2) It is □ is not □ a corporation that was convicted of a felony criminal violation under a Federal law within the preceding 24 months.
(End of provision)