Class Deviation 2022-O0003
Prohibition on Use of the Governmentwide Commercial Purchase Card for Certain Contracts

Effective immediately, contracting officers shall not authorize use of the Governmentwide Commercial Purchase Card (GPC) as a method of purchase or payment against a contract that contains Federal Acquisition Regulation (FAR) clause 52.229-12, Tax on Certain Foreign Procurements.

FAR clause 52.229-12 requires the Government to withhold an excise tax on payments under certain foreign procurements to comply with 26 U.S.C. 5000C. The GPC does not provide a method for the Government to accomplish this withholding, because payments are electronically transmitted to the contractor by the issuing bank upon authorization of the GPC transaction; the Government’s payment goes to the issuing bank. Therefore, contracting officers cannot use the GPC to place a task order or delivery order or to make a payment against a contract that is subject to the withholding required by FAR clause 52.229-12.

This class deviation remains in effect until it is incorporated into the DFARS, or otherwise rescinded.

Effective Date: November 5, 2021 (9 months ago)
Expire Date: None Given
Official Documents: Memo
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