Extension of Class Deviation – Prohibition Against Contracting with Corporations with a Felony Criminal Conviction Under Federal or State Law or an Unpaid Federal Tax Liability

November 20, 2012

TO:                         Heads of Contracting Activity

FROM:                   Angela Billups, Ph.D.   /s/
                              Associate Deputy Assistant Secretary for Acquisition
                              Senior Procurement Executive

SUBJECT:             Extension of Class Deviation – Prohibition Against Contracting with Corporations with a
                             Felony Criminal Conviction Under Federal or State Law or an Unpaid Federal Tax Liability

Purpose:   Extend the class deviation dated March 28, 2012 that implemented the provisions from Sections 738 and 739 of Public Law 112-55 for the United States Department of Agriculture, and Related Agencies (FDA) and Sections 433 and 434 of Public Law 112-74, for the Departments of Labor, Health and Human Services, and Education and the Department of Interior and Related Agencies (IHS) which restricted using Fiscal Year 2012 appropriated funds to contract with corporations who have:  1) been convicted of a felony criminal violation within the preceding 24 months or 2) have an unpaid Federal tax liability.   The prohibitions contained in the FY 2012 appropriations statutes continue to be effective under the FY 2013 Continuing Appropriations Resolution (CAR), Public Law 112-175, September 28, 2012, 126 Stat. 1313.  Section 101(a) of the CAR states that funds are available with the same authority and conditions as stated in the 2012 Acts, unless specifically stated otherwise therein.  Because the CAR did not provide otherwise for the above referenced prohibitions, the prohibitions continue into FY 2013.  The expiration date of Public Law 112-175 is March 27, 2013.

If you have any questions regarding this extension, please contact Cheryl Howe, at 202-690-5552 or cheryl.howe@hhs.gov

cc: FAR Secretariat