MANAGEMENT DIRECTIVE

Management Directive 215.09 Amended Page 1 of 20

Commonwealth of Pennsylvania

Governor’s Office

Subject:

Contractor Responsibility Program

Number:

215.09 Amended

Date:

December 1, 2020

By Direction of:

Jennifer Swails, Secretary of the Budget

Curt Topper, Secretary of General Services

Contact Agency: Office of the Budget, Office of Comptroller Operations, Bureau of

Payable Services, Telephone 717.787.6496

Department of General Services, Bureau of Procurement, Telephone 717.787.5733

This directive establishes policy, responsibilities, and

procedures for the operation of the Commonwealth Contractor

Responsibility Program (CRP). This amendment increases the

dollar amount for contracts/purchases from $5,000 to $10,000

and changes the meeting frequency of the CRP Oversight

Committee.

1. PURPOSE. To establish policy, responsibilities, and procedures for the

operation of the Commonwealth CRP, pursuant to Executive Order 1990-03,

Contractor Responsibility Program and The Commonwealth Procurement Code

(Procurement Code), 62 Pa.C.S. §§ 321(6) and 327(b).

2. SCOPE.

a. This directive applies to all departments, boards, commissions, and

councils (hereinafter referred to as “agencies”) under the Governor’s

jurisdiction. Agencies not under the Governor’s jurisdiction are

encouraged to follow this directive.

b. This directive applies to all Contracts, including renewals, extensions

and assignments thereof, entered in to by the Commonwealth.

3. OBJECTIVES.

a. To ensure the Commonwealth contracts only with Responsible

Contractors.

b. To provide standards and procedures for agency determinations of

Contractor Responsibility.

c. To provide for the centralized collection and dissemination of

information concerning non-responsible Contractors.

Management Directive 215.09 Amended Page 2 of 20

d. To provide for the securing of information on Contractor Responsibility

from the federal government.

e. To provide for agency investigations of allegations of Contractor non-

responsibility.

f. To provide for the confidentiality of the information contained in the CRP

System and sanctions for the unauthorized use or disclosure of that

information.

g. To provide for the collection of liabilities through the offset process.

4. DEFINITIONS.

a. Affiliates. Persons are Affiliates of each other if, directly or indirectly,

either Controls or has the power or ability to Control the other, whether

or not exercised, or a third person Controls or has the power or ability

to Control both, whether or not exercised.

b. Commission of any State or Federal Offense. A judgment or

conviction of a criminal offense by any court of competent jurisdiction,

whether entered upon a verdict or a plea, including a conviction entered

upon a plea of nolo contendere (no contest).

c. Contract. A type of written agreement, regardless of what it may be

called, for the procurement or disposal of supplies, services, or

construction. The term Contract also includes grants, leases, and

purchase orders, as well as purchases made with the Commonwealth

Purchasing Card pursuant to Management Directive 310.23,

Commonwealth Purchasing Card Program. The term also includes

reimbursement agreements, no-cost contracts, and revenue generating

contracts. The term does not include Commonwealth agency purchase

orders against existing contracts, memoranda of understanding,

interagency agreements, or intergovernmental agreements with

Commonwealth agencies, state-affiliated entities, state-related

institutions, or the federal government.

d. Contracting Officer. A person authorized on behalf of the

Commonwealth to enter into and administer Contracts and make official

determinations with respect to Contracts.

e. Contractor. Any person, including, but not limited to, a bidder, offeror,

loan recipient, grantee, or lessor, who has furnished or performed or

seeks to furnish or perform, goods, supplies, services, leased space,

construction or other activity, under a Contract with the Commonwealth.

The term Contractor includes a permittee, licensee, and any agency,

political subdivision, instrumentality, public authority, or other public

entity in the Commonwealth. The term Contractor also includes a

Subcontractor as defined in section 4.

f. Contractor Responsibility.

The process of determining that a

Contractor possesses the technical and financial capability to fully

perform the project requirements in all respects and the integrity and

Management Directive 215.09 Amended Page 3 of 20

reliability to assure good faith performance of a Contract. This includes

making an affirmative determination of responsibility prior to Contract

award, ensuring that Contractors are current with respect to

Commonwealth tax and reporting requirements, and documenting

instances of substandard performance, default, Suspension and

Debarment of Contractors in the CRP System.

g. Contractor Responsibility Program System (CRP System). An

internet-based system used to collect and disseminate information

regarding Contractor Obligations; Suspensions and Debarments by the

Commonwealth, the federal government, and other government

entities; and Contractor Performance Issues. The CRP System is

comprised of two components:

(1) A Web service whereby agency information technology (IT)

systems communicate with the CRP System to perform CRP

Checks. Results of the CRP Check are returned through

automated processes via the agency IT system.

(2) A Web application whereby authorized users log in to the CRP

System, perform CRP Checks manually, and view the results

entirely within the CRP System.

h. Control. The power, whether or not exercised, to direct or cause the

direction of the management and policies of a person, whether through

the ownership of voting shares, by Contract or otherwise, or to make

the day-to-day as well as major decisions in matters of policy,

management, and operations. A determination of Control shall include,

but shall not be limited to, the following factors:

(1) Capital investment and all other financial, property, acquisition,

contract negotiation, and legal matters.

(2) Officer-director-employee selection and comprehensive hiring,

operating responsibility, cost-control matters, and income and

dividend matters.

(3) Financial transactions.

(4) Rights of other shareholders or joint partners.

i. Criminal Charges. To charge with a criminal offense by information or

grand jury indictment or the issuance of an arrest warrant or other

judicial process.

j. CRP Audit Identification (ID) Number. The unique identification

number assigned to each CRP Check performed in the CRP System.

Management Directive 215.09 Amended Page 4 of 20

k. CRP Check. The act of searching the CRP System using a Contractor’s

name and taxpayer identification number (TIN) or Commonwealth

issued supplier number to obtain the Contractor’s current status with

the Commonwealth. A CRP Check constitutes an agency’s official inquiry

of the CRP System and serves as the basis for making a determination

of Contractor Responsibility.

l. CRP Check Certification Form. A document by which an agency

certifies that it has performed a CRP Check and determined a Contractor

to be responsible in accordance with the policies in this directive. The

form can be produced and stored in hard copy or electronic format.

m. CRP Search. The act of searching the CRP System using a Contractor’s

name, Commonwealth issued supplier number, TIN, or any combination

of these data elements. A CRP Search does not constitute an official

inquiry regarding Contractor Responsibility and a determination of

Contractor Responsibility cannot be made using only the results of a CRP

Search.

n. CRP Oversight Committee. This committee shall be comprised of one

member from each of the following agencies, determined by the

respective agency head: Office of General Counsel, Office of Inspector

General, Office of the Budget, Department of General Services,

Department of Revenue, Department of Labor and Industry,

Department of Transportation, Department of State, and any other

agency as directed by the Governor.

o. Debarment. Action taken by the head of the Purchasing Agency or

designee, in consultation with the head of any Using Agency (or

designee), to remove a Contractor from consideration for an award of

any Commonwealth Contract for a specific period of time.

p. Designated Senior Manager (DSM). A senior-level agency employee

selected by the agency head to carry out the agency's responsibilities

under this directive.

q. Liability. For the purpose of this directive, a Liability exists when a

Contractor is not current in the payment of any taxes, fines, penalties,

surcharges, or other monetary amounts owed to the Commonwealth or

any of its agencies.

r. Obligation. For the purpose of this directive, an Obligation exists when

a Contractor owes any type of Liability or is not current with the filing of

all tax returns or any other reporting Obligation to the Commonwealth.

s. Performance Issue. An instance of a Contractor’s Unsatisfactory or

Deficient Performance (as defined in section 4, item bb) under a

Commonwealth Contract.

Management Directive 215.09 Amended Page 5 of 20

t. Person. Any individual, corporation, association, unincorporated

association, company, joint stock company, group, agency, syndicate,

trust or trustee, receiver, fiduciary, partnership, joint venture,

conservator, permittee, licensee, or other entity, including the

Commonwealth of Pennsylvania, its state-affiliated entities, state-

related institutions, political subdivisions, instrumentalities, and public

authorities. As applied to a partnership, unincorporated association or

other joint venture, the term shall include the partners and members

thereof, and as applied to a corporation or association, the term shall

include all officers, directors, and controlling employees.

u. Purchasing Agency. An agency authorized by the Procurement Code

or by other law to enter into Contracts for itself or as the agent of

another agency.

v. Responsible Contractor. A person who has the capability in all

respects to fully perform the Contract requirements and the integrity

and reliability, which will assure good faith performance.

w. System for Award Management (SAM) System. The list maintained

and disseminated by the United States General Services Administration

(GSA) containing information about persons prohibited from

participating in specified federal procurement or non-procurement

transactions or prohibited from being a participant in covered

transactions, whether the person has been Suspended; Debarred;

proposed for Debarment under 48 CFR part 9, subpart 9.4; or voluntarily

excluded.

x. Subcontractor. Any person contracting to perform or supply part or

all of a Commonwealth Contract. For the purpose of this directive, the

term Subcontractor refers only to those Subcontractors required to be

disclosed in a Contractor’s bid or proposal under the terms of the

solicitation, or for which the Contractor must obtain Commonwealth

approval under the terms of the Contract or applicable law or regulation.

y. Suspension. A temporary disqualification of a Contractor from

consideration for an award of any Commonwealth Contract for a period

of up to three months if there is probable cause for Debarment.

z. Tax Liability. For purposes of this directive, a Tax Liability exists when

a Contractor is not current in the payment of any federal, state, or local

taxes, or is not current with the filing of all returns or reports for these

taxes.

aa. Unbalanced Bid. An offer by a vendor or Contractor which contains

extremely low prices on items or types of work which are unimportant

or infrequently ordered or performed and extremely high prices on items

or items of work which are frequently ordered or performed, resulting

in an effort to qualify as the low bidder while charging disproportionately

high prices for certain items or types of work.

Management Directive 215.09 Amended Page 6 of 20

bb. Unsatisfactory or Deficient Performance. Failure to carry out or

satisfactorily perform all requirements, including compliance with all

plans, specifications, service level agreements, or terms and conditions

of a Commonwealth Contract.

cc. Using Agency. An agency that utilizes any supplies, services, or

construction procured under the Procurement Code.

5. POLICY.

a. Agencies may enter into Contracts only with Responsible Contractors.

b. A determination of Contractor Responsibility must be made prior to any

Contract award, renewal, extension, or assignment. Such determination

must be made part of the Contract documentation in accordance with

the responsibilities and procedures in this directive.

c. Agencies may enter into Contracts or make purchases for $10,000 or

less, or for the aggregate amount of a series of Contracts or purchases

in a fiscal year if the total amount is $10,000 or less, without accessing

the CRP System.

d. A determination of Contractor Responsibility shall be made by the

agency in its sole discretion. If the agency declares a Contractor to be

non-responsible, the Contractor shall be ineligible for the Contract.

e. The methods used by agencies to make a determination of Contractor

Responsibility shall include, but shall not be limited to:

(1) Accessing the CRP System to ascertain the Contractor's current

status;

(2) Collecting all available information that bears upon a

responsibility determination; or

(3) Meeting with and discussing Performance Issues with the

Contractor prior to awarding, renewing, or extending the

Contract.

f. Agency personnel authorized to access the CRP System shall do so only

for official purposes related to and permitted by this program. Any

unauthorized use of the CRP System, disclosure of the information

contained in the CRP System, or any use of such information for other

than official purposes is prohibited. Violation of these prohibitions will

result in disciplinary action against the personnel involved.

g. Each agency must have a DSM to coordinate and serve as the agency

primary point of contact regarding operation of the CRP. Any changes

to DSM contact information must be reported to the Office of the Budget,

Office of Comptroller Operations, Bureau of Planning and Management

using the electronic role request functionality built into the CRP System.

Management Directive 215.09 Amended Page 7 of 20

h. Current Suspension or Debarment of a person shall prohibit agencies

from awarding, renewing, extending, amending or assigning any

Contract to such person unless the Contracting Officer determines that

there are compelling reasons and the head of the Purchasing Agency or

designee approves the determination. Failure by an agency to enter

into a Contract promptly shall not be considered a compelling reason for

contracting with a Suspended or Debarred Contractor. Nothing in this

directive shall preclude the Commonwealth from pursuing any rights,

either criminal or civil, or as otherwise provided for in an existing

Contract.

i. Suspended or Debarred Contractors must be reported to the

Department of General Services (DGS), Office of Chief Counsel and

include Contractor name, address, and TIN; agency reporting the

Suspension or Debarment; effective date; end date; and whether the

Contractor is Suspended or Debarred. Individuals must be reported

separately from any other type of corporation, partnership or other

entity with whom the individual is associated. The list of Suspended or

Debarred Contractors shall be maintained and published by DGS and

incorporated into the CRP System. Reporting Suspended or Debarred

Contractors to DGS does not relieve agencies of any statutory

requirements to report or publish Suspensions or Debarments.

j. In accordance with the Single Audit Act Amendments of 1996, whenever

federal funds are used to fund any portion of a Contract, agencies must

access SAM, the federal government’s primary Contractor and federal

grant applicant database, to ascertain whether the Contractor is

Suspended or Debarred by the federal government. A CRP Check

performed in the CRP System includes access to SAM.

k. The Contractor must certify in writing that neither it nor its

Subcontractors are under Suspension or Debarment by the

Commonwealth, the federal government, or any governmental entity,

instrumentality, or authority; or, if the Contractor cannot so certify, it

must instead provide a written explanation of why such certification

cannot be made. The Contractor must also certify that it has no Tax

Liabilities or other Commonwealth Obligations; has filed a timely

administrative or judicial appeal if such liabilities or Obligations exist; or

is subject to a duly approved deferred payment plan if such liabilities

exist.

l. The Contractor shall inform the contracting agency if, at any time during

the term of the Contract, it becomes delinquent in the payment of Tax

Liabilities or other Commonwealth Obligations, or if it or its

Subcontractors are Suspended or Debarred by the Commonwealth, the

federal government, or any other governmental entity, instrumentality,

or authority.

m. The Contractor Responsibility Provisions (Enclosure 1, Contractor

Responsibility Provisions) shall be attached to and made a part of every

Contract unless a waiver is authorized by the Office of General Counsel.

Management Directive 215.09 Amended Page 8 of 20

n. Standard Contract terms and conditions shall be included for Contracts

in excess of $10,000.

o. The Offset Provision (Enclosure 2, Offset Provision) shall be included in

all Contracts requiring the Commonwealth to make a payment. The

Contractor agrees that the Commonwealth may offset the amount of

any Liability of the Contractor or its Affiliates and subsidiaries that is

owed to the Commonwealth against any payments due the Contractor

under this or any other Contract with the Commonwealth.

p. Information regarding Contractor Obligations shall be provided to the

PA Office of Administration, Office for Information Technology, Bureau

of Integrated Enterprise System (IES) in accordance with

responsibilities and procedures in this directive.

q. Obligations shall remain in the CRP System until fulfilled by the

Contractor. Obligations shall be removed from the CRP System in

accordance with the schedules determined by the CRP Oversight

Committee and responsibilities and procedures in this directive.

r. Performance Issues shall be entered into the CRP System at the

discretion of authorized agency personnel, subject to the approval of the

agency DSM or, for statewide Contracts, the approval of the agency DSM

and DGS Bureau of Procurement.

s. Performance Issues are entered into the CRP System with a “pending”

status. Pending Performance Issues must be approved or deleted from

the CRP System within 180 days from the entry date of the Performance

Issue. Pending Performance Issues in excess of 180 days must be

deleted. Each agency must review its Performance Issues at least semi-

annually to ensure accuracy.

t. Performance Issues shall remain in the CRP System in “approved” status

until the Contractor corrects the issue, as determined by the agency that

approved the Performance Issue. When such a determination is made,

the status of the Performance Issue must be changed to “resolved” in

the CRP System.

u. Requests to waive any Contract provision regarding Contractor

Responsibility, offset, Obligations, Suspensions, or Debarments must be

supported by compelling reasons, in writing, approved by the agency

head and the Office of General Counsel. Such written justification must

be included with any Contract documentation.

v. Certain payments, including but not limited to payments mandated by

federal or state law, may be exempt from CRP Checks. The Secretary

of the Budget has the authority to approve requests for exemption,

unless the request pertains to an Office of the Budget Contract, in which

case the Secretary of General Services has such authority. The CRP

Oversight Committee must review any request for exemption and make

recommendations for approval to the Secretary of the Budget or the

Secretary of General Services, as appropriate.

Management Directive 215.09 Amended Page 9 of 20

6. RESPONSIBILITIES.

a. CRP Oversight Committee shall:

(1) Monitor, maintain, and evaluate the CRP for efficiency,

effectiveness, and use.

(2) Respond to concerns raised by the agencies regarding the CRP.

(3) Provide guidance to ensure that the underlying purpose of this

directive is being carried out and propose any necessary

revisions.

(4) Review requests to exempt certain payments from the provisions

of this directive and make recommendations for approval to the

Secretary of the Budget or the Secretary of General Services, as

appropriate.

(5) Create and disseminate guidelines for the release of information

contained within the CRP System.

(6) Monitor instances of Unsatisfactory or Deficient Performance

reported by agencies for Contracts including, but not limited to,

statewide Contracts and ensure that appropriate action is taken

by the agencies against those Contractors.

(7) Coordinate technical support services for the CRP System,

including requesting and approving changes to the CRP System.

(8) Determine the schedules by which agencies provide information

for inclusion in the CRP System.

(9) Establish guidelines for agency determinations regarding federal

Suspensions or Debarments that do not fall under the scope of

section 5.j. of this directive.

(10) Approve and authorize the creation of special reports from the

CRP System to assist agencies in ensuring that they only

Contract with Responsible Contractors.

(11) Meet on an as needed basis.

b. Office of the Budget shall:

(1) Participate in the management and maintenance of the CRP in

coordination with DGS and other agencies as may be directed by

the Governor.

(2) Ensure that the offset provision is included in all Contracts or that

a written waiver is attached.

Management Directive 215.09 Amended Page 10 of 20

c. Department of General Services shall:

(1) Participate in the management and maintenance of the CRP in

coordination with the Office of the Budget and other agencies as

may be directed by the Governor.

(2) Maintain a current list of Contractors Suspended or Debarred by

the Commonwealth and disseminate such information to

agencies and others upon request.

(3) Develop and implement an ongoing training program for the CRP

and the requirements of this directive.

d. Department of Revenue and the Department of Labor and

Industry shall provide electronic files containing information regarding

Obligations owed to the Commonwealth to be included in the CRP

System. The schedule for providing such information shall be

determined by the CRP Oversight Committee.

e. Department of Transportation shall:

(1) Provide relevant information to the CRP System, in accordance

with the provisions set forth in this directive concerning all

Contractors, both prequalified and non-prequalified.

(2) Make use of information in the CRP System in the administration

of its program for prequalification of bidders as well as in

determinations of Contractor Responsibility where Contractors

are not prequalified.

f. Office of Inspector General shall assist agencies in investigating

Contractor Responsibility and deficient performance and in

recommending appropriate action.

g. PA Office of Administration shall:

(1) Function as CRP System administrator, including providing

technical support for the CRP System and ensuring only

authorized users are able to access the CRP System.

(2) Provide technical support to DGS for maintenance of the

Suspension or Debarment list.

(3) Ensure electronic files containing Obligation data from the

Department of Revenue and the Department of Labor and

Industry are incorporated into the appropriate SAP custom tables

and copied to the appropriate file location for import to the CRP

System according to the schedules established by the CRP

Oversight Committee.

Management Directive 215.09 Amended Page 11 of 20

h. Agency Heads shall:

(1) Ensure agency compliance with the CRP.

(2) Ensure that their respective agencies enter and update

information in the CRP System, or provide the information

necessary to update the CRP System, in accordance with the

provisions set forth in this directive.

(3) Report questions and concerns regarding the CRP System or this

directive to the agency DSM or the CRP Oversight Committee.

(4) Designate a senior-level agency employee as the DSM and one

additional agency employee as the alternate DSM. Additional

DSMs may be designated as deemed necessary for efficient

contracting operations. Notify the Office of the Budget, Office of

Comptroller Operations, Bureau of Planning and Management of

any changes to the agency’s DSM or alternate DSM contact

information.

(5) Ensure that all liabilities owed to the Commonwealth are

collected to the extent practicable through the offset process.

(6) Review all existing Contract formats to ensure the inclusion of

the offset provision. If it is determined that the offset provision

should not be included in certain Contracts, ensure the agency

submits a request for waiver through the agency's Office of Chief

Counsel for review and approval by the Office of General Counsel.

i. Designated Senior Managers (DSM) shall:

(1) Serve as the agency primary point of contact regarding the

operation of the CRP.

(2) Approve or disapprove requests for access to the CRP System

made by other employees within the agency. Determine if an

employee’s request for access is appropriate (e.g., request for

view-only access, request to enter Performance Issues).

(3) Approve or disapprove entries in the CRP System for

Performance Issues and Obligations owed to the agency

(excluding Obligations to the Department of Revenue or

Department of Labor and Industry, Bureau of Unemployment

Compensation Benefits or State Workers’ Insurance Fund).

Ensure agency-approved Performance Issues regarding

statewide Contracts are forwarded to DGS, Bureau of

Procurement for final approval. Ensure that agency-approved

Obligations are forwarded to the Office of the Budget, Office of

Comptroller Operations in accordance with section 7.d. of this

directive.

Management Directive 215.09 Amended Page 12 of 20

(4) Ensure Performance Issues entered by the agency are reviewed

for accuracy at least semi-annually. Ensure any Performance

Issues that remain in pending status in excess of 180 days are

deleted. Change the status of a Performance Issue from

“approved” to “resolved” upon determination by the agency that

the Contractor has corrected the identified issue.

(5) Notify the Office of the Budget, Office of Comptroller Operations,

Bureau of Planning and Management when a Contractor fulfills

its Obligations to the agency (excluding Obligations to the

Department of Revenue or Department of Labor and Industry,

Bureau of Unemployment Compensation Benefits or State

Workers’ Insurance Fund).

NOTE: This step is critical to ensure that payments to the

Contractor are released timely once the Obligation has been

fulfilled. If the agency fails to notify the Office of the Budget,

Office of Comptroller Operations, Bureau of Planning and

Management that the Obligation has been fulfilled, payments to

the Contractor could be blocked or delayed unnecessarily.

(6) Ensure the agency provides a CRP Check certification form or

CRP audit ID number to document the determination of

Contractor Responsibility.

(7) Report questions or concerns regarding the CRP or this directive

to the CRP Oversight Committee.

7. PROCEDURES.

a. Agency Determination of Responsible Contractors.

(1) Perform a CRP Check to obtain the Contractor’s current status.

(2) Determine, based on the results of the CRP Check, if the

Contractor is responsible.

NOTE: User involvement at this step may vary depending on

whether the agency uses the CRP System Web application or

CRPS Web service to perform the CRP Check.

In determining a Contractor to be responsible, factors to be

considered by the agency shall include, but shall not be limited

to:

(a) Current Suspension or Debarment by the Commonwealth,

federal government, or any other state or governmental

entity.

(b) Obligations to the Commonwealth, including Tax

Liabilities.

Management Directive 215.09 Amended Page 13 of 20

time schedule and in accordance with the plans and

specifications of the Contract.

(d) Default, Unsatisfactory or Deficient Performance in past

or current Commonwealth Contracts as determined by

the Commonwealth in its sole discretion.

(e) Financial stability and economic capability to perform all

the Contract requirements.

(f) Any other information, act or omission indicating lack of

skill, ability, capacity, quality control, business integrity,

or honesty that seriously and directly affects the present

responsibility of the Contractor, including, but not limited

to:

1 Making false statements, providing misleading or

incomplete information to the Commonwealth.

2 Failing to provide information or cooperate with a

Commonwealth agency or officials.

3 Offering Unbalanced Bids.

4 Discrimination in violation of law or regulation in

the conduct of business as a Contractor.

5 The Commission of any State or Federal Offense

or Criminal Charges.

6 Investigation pending by a federal or state agency

or under investigation by a federal or state agency

within the past five years.

(3) If the agency determines that a Contractor owes an Obligation,

the agency shall provide the Contractor an opportunity to fulfill

the Obligation within a reasonable time as determined by the

applicable agency.

NOTE: When a Contractor fulfills an Obligation, the Obligation

is removed from the electronic files that supply Obligation data

to the CRP System in accordance with the schedule established

by the CRP Oversight Committee. However, the Contractor may

immediately provide the agency with a clearance certificate from

the agency to which the Obligation has been made.

Management Directive 215.09 Amended Page 14 of 20

(4) For Contracts in excess of $10,000, the agency shall document

the determination of Contractor Responsibility and attach such

documentation to the Contract for the entire approval process.

(a) If the agency uses the CRP System Web application to

perform a CRP Check, the agency must attach the CRP

Check certification form.

(b) If the agency uses the CRP System Web service to

perform a CRP Check, the agency must provide the CRP

Audit ID Number.

If the Contractor provides a clearance certificate, the

agency shall attach the clearance certificate to the

Contract for the entire approval process.

b. Performing a CRP Check Prior to Payment.

(1) Agencies Using SAP. CRP Checks performed on invoices

processed in SAP will be transparent to agencies. Agencies and

the Office of the Budget, Office of Comptroller Operations,

Bureau of Payable Services shall process invoices according to

established procedures for purchase order (PO) and non-PO

invoice payments. Upon completion of invoice processing, IES

will execute a series of automated programs to match

Contractors being paid on invoices to the list of Contractors who

owe Obligations to the Commonwealth.

(2) Agencies Not Using SAP. Agencies not using SAP for invoice

processing must ensure that a CRP Check is performed on any

Contractor receiving a payment in excess of $10,000. This can

be accomplished through the CRP System Web application or CRP

System Web service.

c. Recording Obligations Owed to the Department of Revenue and

the Department of Labor and Industry.

(1) Action By: The Department of Revenue and the

Department of Labor and Industry. Provide to IES, on a

schedule determined by the CRP Oversight Committee, electronic

files containing information regarding Obligations owed.

(2) Action By: PA Office of Administration, Office for

Information Technology, Bureau of Integrated Enterprise

System. Load the data from the electronic files into the

appropriate SAP custom table and copy the electronic files to the

appropriate file location for automated update to the CRP

System.

Management Directive 215.09 Amended Page 15 of 20

d. Recording Obligations Owed to Agencies (Other Than the

Department of Revenue and the Department of Labor and

Industry).

(1) Action By: Agency to Which and Obligation is Owed.

(a) Complete the Commonwealth Obligation Form, including

approval from the agency DSM.

(b) Send the completed Commonwealth Obligation Form to

the Office of the Budget, Office of Comptroller Operations,

Bureau of Planning and Management.

(2) Action By: Office of the Budget, Office of Comptroller

Operations, Bureau of Planning and Management.

(a) Review the Commonwealth Obligation Form for

completeness and accuracy.

1 If approved, enter the information into the

obligation tracking spreadsheet.

2 If disapproved, contact the agency DSM to

determine appropriate action.

(b) Upon completing any updates to the obligation tracking

spreadsheet, save the file in the appropriate location for

import to the CRP System.

e. Removing Obligations Owed to the Department of Revenue or

the Department of Labor and Industry. An Obligation is removed

from the CRP System when fulfilled by the Contractor, either through

the Contractor’s own actions or through offset action.

(1) Action By: The Department of Revenue or the Department

of Labor and Industry.

(a) Determines the Obligation must be removed from the CRP

System (including Obligations that have been fulfilled by

the Contractor).

(b) Follows established procedures to update agency IT

systems for Obligations that have been fulfilled.

Oversight Committee, electronic files containing

information regarding Obligations owed.

Management Directive 215.09 Amended Page 16 of 20

(2) Action By: PA Office of Administration, Office for

Information Technology, Bureau of Integrated Enterprise

System. Load the data from the electronic files into the

appropriate SAP custom table and copy the electronic files to the

appropriate file location for automated update to the CRP

System.

f. Removing Obligations Owed to Agencies (Other Than the

Department of Revenue or Department of Labor and Industry).

(1) Action By: Agency to Which an Obligation is Owed.

(a) Determines the Obligation must be removed from the CRP

System (including Obligations that have been fulfilled by

the Contractor).

(b) Updates agency records as necessary according to

established procedures and completes the

Commonwealth Obligation Form, including approval from

the agency DSM.

the Office of the Budget, Office of Comptroller Operations,

Bureau of Planning and Management.

(2) Action By: Office of the Budget Office of Comptroller

Operations, Bureau of Planning and Management.

(a) Review the Commonwealth Obligation form for

completeness and accuracy.

1 If approved, remove the Obligation from the

obligation tracking spreadsheet.

2 If disapproved, contact the agency DSM to

determine appropriate action.

(b) Upon completing any updates to the obligation tracking

spreadsheet, save the file in the appropriate location for

import to the CRP System.

g. Processing Offset Requests.

(1) Action By: Purchasing Agency.

(a) Determines that one of its Contractors owes a Liability to

the Commonwealth.

Management Directive 215.09 Amended Page 17 of 20

(b) Immediately complete the Contractor information section

of the Offset Memorandum (Memorandum), and send the

Memorandum to the agency to which the Liability is owed,

informing that agency of the Liability and requesting that

the agency validate the Liability and authorize the

Purchasing Agency to seek an offset. The Purchasing

Agency shall attach to the Memorandum a printout from

the CPR System showing that there is a Liability.

procurement or Contracting Officer.

(2) Action By: Agency to Which the Liability is Owed.

(a) Determine whether the Liability is still owed and, if so,

authorize the Purchasing Agency to take offset action.

(b) If the Liability is still owed, the head of that agency, or

his or her designee, shall complete the verification of

Liability on the Memorandum, sign the Memorandum, and

return it to the Purchasing Agency as authorization for

offset consideration.

(3) Action By: Agency Head of the Purchasing Agency. Makes

the final determination as to whether offset action, in full or in

part, should be taken.

(a) In making this determination, the head of the Purchasing

Agency, or his or her designee, may consider what effect,

if any, the offset action may have on the agency's

Contract and whether there are compelling reasons not to

take offset action. Compelling reasons shall include, but

shall not be limited to, that the Contractor's services are

vital to the Commonwealth or that the failure to retain the

Contractor's services would endanger the health and

safety of the citizens of the Commonwealth or the

wellbeing of the Commonwealth. The head of the

Purchasing Agency or his or her designee may also

determine the reasonable partial amount to be offset from

the Contract amount or the periodic or expected

payments to be made under the Contract, subject to

consent by the Contractor, in order to maintain the

continued viability of the Contractor to perform the

Contract.

Management Directive 215.09 Amended Page 18 of 20

(b) Complete the determination of offset on the

Memorandum and send the Memorandum to the Office of

the Budget, Office of Comptroller Operations, Bureau of

Payable Services. If the head of the Purchasing Agency,

or his or her designee, determines that there are

compelling reasons not to take offset action, or to take

partial offset action, he or she shall state in writing the

compelling reasons and forward a copy of the

Memorandum to the agency to which the Liability is owed.

A copy of the Memorandum shall also be sent to the

agency contracting or procurement officer.

(4) Action By: Office of the Budget, Office of Comptroller

Operations, Bureau of Payable Services.

(a) Upon receipt of the Contractor's invoice for payment and

the approved Memorandum, offset the amount owed or

specified to the Commonwealth against the amount due

the Contractor and forward the balance, if any, to the

Contractor. Credit the offset amount to the agency to

which the Liability was owed and notify that agency of the

amount.

(b) Upon receipt of a Memorandum that includes compelling

reasons not to take offset action, process the invoice

according to established PO or non-PO invoice processing

procedures.

NOTE: When an offset action results in a Liability being

completely satisfied, the Liability will be removed from

the electronic files that supply Obligation data to the CRP

System in accordance with the schedule established by

the CRP Oversight Committee. A Contractor’s name may

still appear in the electronic files if the Contractor owes

other Liabilities or if the offset action satisfies only a

portion of a Liability.

h. Obtaining Authorization to Use the CRP System. Refer to the

Contractor Responsibility Program System (CRP System) – Reference

Manual (Intro Chapter) for instructions on obtaining a user role.

This directive replaces, in its entirety, Management Directive 215.09 dated

November 18, 2019.

Enclosure 1 - Contractor Responsibility Provisions

Enclosure 2 – Offset Provision

Enclosures for Management Directive 215.09 Amended Page 19 of 20

Contractor Responsibility Provisions

For the purpose of these provisions, the term Contractor is defined as any person,

including, but not limited to, a bidder, offeror, loan recipient, grantee or lessor, who

has furnished or performed or seeks to furnish or perform, goods, supplies, services,

leased space, construction or other activity, under a contract, grant, lease, purchase

order or reimbursement agreement with the Commonwealth of Pennsylvania

(Commonwealth). The term Contractor includes a permittee, licensee, or any agency,

political subdivision, instrumentality, public authority, or other public entity in the

Commonwealth.

1. The Contractor certifies, in writing, for itself and its subcontractors required to be

disclosed or approved by the Commonwealth, that as of the date of its execution of

this Bid/Contract, that neither the Contractor, nor any such subcontractors, are under

suspension or debarment by the Commonwealth or any governmental entity,

instrumentality, or authority and, if the Contractor cannot so certify, then it agrees to

submit, along with its Bid/Contract, a written explanation of why such certification

cannot be made.

2. The Contractor also certifies, in writing, that as of the date of its execution of this

Bid/Contract it has no tax liabilities or other Commonwealth obligations, or has filed a

timely administrative or judicial appeal if such liabilities or obligations exist, or is

subject to a duly approved deferred payment plan if such liabilities exist.

3. The Contractor's obligations pursuant to these provisions are ongoing from and

after the effective date of the Contract through the termination date thereof.

Accordingly, the Contractor shall have an obligation to inform the Commonwealth if,

at any time during the term of the Contract, it becomes delinquent in the payment of

taxes, or other Commonwealth obligations, or if it or, to the best knowledge of the

Contractor, any of its subcontractors are suspended or debarred by the

Commonwealth, the federal government, or any other state or governmental entity.

Such notification shall be made within 15 days of the date of suspension or debarment.

4. The failure of the Contractor to notify the Commonwealth of its suspension or

debarment by the Commonwealth, any other state, or the federal government shall

constitute an event of default of the Contract with the Commonwealth.

5. The Contractor agrees to reimburse the Commonwealth for the reasonable costs

of investigation incurred by the Office of State Inspector General for investigations of

the Contractor's compliance with the terms of this or any other agreement between

the Contractor and the Commonwealth that results in the suspension or debarment of

the contractor. Such costs shall include, but shall not be limited to, salaries of

investigators, including overtime; travel and lodging expenses; and expert witness and

documentary fees. The Contractor shall not be responsible for investigative costs for

investigations that do not result in the Contractor's suspension or debarment.

6. The Contractor may search the current list of suspended and debarred

Commonwealth contractors by visiting the eMarketplace website at

http://www.emarketplace.state.pa.us

and clicking the Debarment List tab.

Enclosures for Management Directive 215.09 Amended Page 20 of 20

Offset Provision

The Contractor agrees that the Commonwealth of Pennsylvania (Commonwealth) may

set off the amount of any state tax liability or other obligation of the Contractor or its

subsidiaries to the Commonwealth against any payments due the contractor under any

contract with the Commonwealth.