Commercial Purchase Card: Verifying Contractor's Delinquent Debt Status in SAM Database
Why do Contracting Officers (COs) need to verify a contractor's delinquent debt status in SAM database?
1. To ensure the contractor's financial eligibility for federal contracts
2. To check if the contractor has any outstanding debts to the federal government
3. To make informed decisions about the contractors for government purchases
Answer:
Contracting Officers (COs) need to verify a contractor's delinquent debt status in the System for Award Management (SAM) database to ensure that the contractor does not have any outstanding debts or legal issues that could impact their ability to fulfill the contract. By checking the SAM database, the COs can make informed decisions about the contractors they choose for government purchases.
When using the governmentwide commercial purchase card as a method of payment, Contracting Officers (COs) need to verify a contractor's delinquent debt status in the SAM database. This verification is necessary when the purchases exceed the micro-purchase threshold, which is often set at $3,500.
The SAM database allows COs to ensure that a business is eligible to receive federal contracts and does not have any outstanding debts to the federal government that could hinder their ability to deliver on the contract. For example, if a business has a significant amount of unpaid taxes, it may be considered a financial risk and be less likely to receive a contract or purchase order.
By checking the SAM database, COs can make informed decisions and choose contractors who are financially stable and eligible to fulfill government contracts. This verification process helps in mitigating risks and ensuring the smooth execution of government purchases.