Comment on FR Doc # E9-85

We recommend that subparagraph 31.3402(t)-3(b), “Payments subject to withholding, Payment threshold of $10,000,” be modified to align with Federal Acquisition Regulation (FAR) subparagraph 13.202(g)(1), which states that: For acquisitions of supplies and services that, as determined by the head of the agency, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical or radiological attack, the micro-purchase threshold is – (i) $15,000 in the case of any contract to be awarded and performed, or purchase to be made, inside the United States….” Specifically, we recommend that language be added to subparagraph 31.3402(t)-3 (b) exempting procurement actions made in accordance with FAR 13.202(g)(1) from withholding. We believe that to require such withholding is contrary to the intent of the FAR to provide a streamlined method for critical acquisitions in the national interest. To withhold a percentage from payments for urgently needed supplies and/or services is incompatible with the need for committed, quick and flexible response by the supplier base, under what are often demanding circumstances. While we note that paragraph 31.3402(t)-4(l) provides for the Secretary of the Treasury to except emergency or disaster payments on a case-by-case basis via Internal Revenue Bulletin, we believe this process does not provide an adequate level of assurance to the supplier base regarding payment for supplies and services in times of critical need. Since the FAR already envisions these kinds of emergency transactions under the streamlined micro-purchase threshold, we believe it only makes sense to have the exemption to withholding consistent with the FAR as a matter of standing policy. Thank you for the opportunity to comment.