Treasury Integrates OpenCorporates Data to Strengthen Do Not Pay Initiative

The Department of the Treasury, through its Bureau of the Fiscal Service (BFS), has recently announced a significant enhancement to the Do Not Pay program by integrating the OpenCorporates U.S. legal entity dataset. This advancement aims to bolster federal agencies’ capabilities to effectively prevent improper payments and combat fraud. The integration of the OpenCorporates dataset is not just a routine upgrade; it represents a commitment to enhancing compliance with the Payment Integrity Information Act of 2019 (PIIA), ensuring that agencies can more accurately verify the eligibility of businesses before allocating federal funds.

The Do Not Pay program, which has been operational for over a decade, provides a centralized service that allows federal agencies and state-administered programs funded by the federal government to screen potential payees against several authoritative databases. By incorporating the data provided by OpenCorporates, BFS can now access a more comprehensive and cost-effective source of information that reveals whether a business is active or was fraudulently established for the purpose of receiving federal monetary assistance. This capability is critical in addressing the large issue of improper payments, which amounts to hundreds of billions of dollars annually.

In the fiscal year 2025, Do Not Pay facilitated the detection, prevention, and recovery of approximately $11.7 billion in potential fraud and improper payments. Such impressive figures highlight the program's effectiveness and underscore the necessity for its continuous improvement. As the scrutiny over federal expenditures intensifies, the ability to reliably confirm business legitimacy becomes paramount, especially as agencies strive to comply with federal mandates and protect taxpayer dollars.

With the integration of OpenCorporates, federal agencies can anticipate an enhancement in their verification processes, ultimately leading to more informed vendor eligibility assessments. This integral step is particularly relevant for procurement professionals, who bear the responsibility of ensuring compliance and minimizing risk in contract award decisions. The ability to verify business registration status—either at the point of application or during eligibility assessments—will streamline procurement processes and mitigate the risk of improper payments significantly.

Procurement professionals should heed the insights derived from this development. They must leverage the enhanced Do Not Pay dataset to bolster their due diligence practices. A more robust due diligence framework can assist in reducing the possibility of selecting ineligible vendors, which can lead to payment delays or disqualification from receiving federal funding. Furthermore, it is essential for contractors and vendors to maintain precise and updated information in legal entity databases to avoid potential pitfalls.

As this initiative unfolds, it signifies a broader trend towards maximizing payment integrity and implementing stringent fraud prevention measures across all levels of federal procurement. Consequently, it is likely that compliance requirements will evolve, and procurement professionals must stay informed to navigate these changes effectively. Keeping abreast of developments will not only enhance transparency and accountability within federal contracting but will also reinforce the government's commitment to safeguarding taxpayer investments.

This integration underscores a pivotal moment in the evolution of federal procurement strategies—emphasizing the necessity of leveraging comprehensive data analytics in combating fraud while ensuring the integrity of federal disbursements. By continuing to innovate within the Do Not Pay framework, the Treasury is setting a benchmark for future advancements in procurement compliance and risk management.