The Office of Federal Procurement Policy is asking agencies to explain how they handle tax-delinquent contractors.

President Obama has ordered a review of the issue to develop policies to stop tax scofflaws from receiving contracts. He said federal contractors owe $5 billion in back taxes. (SAA, 2/5)

Government Executive magazine reported that the survey asks agencies for a report on their existing policies. Contractors are required to certify that they don’t owe overdue taxes; OFPP wants to know what agencies do with that information.

The president said he will ask for legislation requiring that federal payments to delinquent companies be diverted to the IRS. Similar legislation failed to pass last year.

Slow sales, not tight credit, is the most pressing problem facing small businesses, according to a survey by the National Federation of Independent Business.

Just 5% of companies surveyed said financing was their number-one problem, while 31% cited poor sales.

The Obama administration has proposed providing $30 billion to community banks to encourage business lending. NFIB said, “This dinky amount is of little help.”

“Washington still does not get it,” the business group said.

The Justice Department said a former military contractor, Terry Hall of Snellville, GA, has pleaded guilty to conspiracy to pay more than $3 million in bribes to U.S. Army contracting officials stationed at Camp Arifjan, an Army base in Kuwait, and to money laundering conspiracy.

According to court documents, Hall owned and operated several companies, including Freedom Consulting and Catering Co. and Total Government Allegiance, which had defense contracts. He is the eighth person to plead guilty as a result of a wide-ranging investigation of corruption at the Camp Arifjan contracting office.

An Army officer, Maj. Eddie Pressley, and his wife, Eurica Pressley, are scheduled to go on trial next month. A federal grand jury alleged that the Pressleys received more than $2.8 million in money and other valuable items from Hall.

Justice said Hall will forfeit $15.8 million and faces up to 20 years in prison.

Murray Schooner, a longtime, energetic advocate for small and disadvantaged businesses, died Feb. 28. Until his retirement, Schooner headed small business outreach for Unisys Corp.

A retired Army officer, he was active in community theater and delighted in playing Santa Claus at community events near his home in Northern Virginia. “You won’t find a better Jewish Santa Claus anywhere,” his son Steven told the Falls Church (VA) Times.