Delinquent Federal Debt

The flag impacts whether the Governmentwide commercial purchase card can be used as the method of payment. It does not automatically make a contractor ineligible for award. You may want to take a look at FAR Case 2006-026 available on the Rules Page or here, especially the response to comment 14: "This rule does not impact contract award decisions by contracting officers."

The flag impacts whether the Governmentwide commercial purchase card can be used as the method of payment. It does not automatically make a contractor ineligible for award. You may want to take a look at FAR Case 2006-026 available on the Rules Page or here, especially the response to comment 14: "This rule does not impact contract award decisions by contracting officers."

Thanks for the relevant information. I understand FAR Case 2006-026 and the reasons why using Credit Cards as a method of payment should be considered. Although the response to comment 14 states: "This rule does not impact contract award decisions by contracting officers." I still believe contracting officers must consider if a "Yes" in the Delinquent Federal Debt flag may indicate the contractor has financial problems that could affect their ability to perform the contract. I believe the CO will need to consider asking the prospective awardee to provide more information about this federal debt before making a positive determination of responsibility. See FAR 9.105-1 Obtaining information.

Perhaps FAR 32.1108((2)(iii) is more direct: "Contracting officers shall not use the presence of the CCR debt flag indicator to exclude a contractor from receipt of the contract award or issuance or placement of an order."

For responsibility purposes, I would suggest that the CO is not looking at the CCR, but at the certification regarding responsibility matters (FAR 52.209-5). If the offeror checks the box at para (a)(1)(i)(D) that it has been notified of a delinquency > $3K, then the CO needs to notify the agency debarment folks IAW FAR 9.104-5(a)(2). The agency suspension and debarment official would then, after affording the contractor notice and due process, look to the criteria in FAR 9.406-2((1)(v) (and anything else that can inform his judgment) in deciding whether to debar.