# OFFICE OF MANAGEMENT AND BUDGET

**2 CFR Parts 180 and 215**

**Guidance for Governmentwide Debarment and Suspension
(Nonprocurement)**

**AGENCY:** Office of Management and Budget

**2 CFR Subtitle A --Part 180 OMB GUIDELINES TO AGENCIES ON
GOVERNMENTWIDE DEBARMENT AND SUSPENSION (NONPROCUREMENT)**

Sec.

180.05 What does this part do?

180.10 How is this part organized?

180.15 To whom do these guidelines apply?

180.20 What must a Federal agency do to implement these guidelines?

180.25 What must a Federal agency address in its implementation of these
guidelines?

180.30 Where does a Federal agency implement these guidelines?

180.35 By when must a Federal agency implement these guidelines?

180.40 How are these guidelines maintained?

180.45 Do these guidelines cover persons who are disqualified, as well
as those who are excluded from nonprocurement transactions?

**Subpart A\--General**

180.100 How are Subparts A through I organized?

180.105 How is this part written?

180.110 Do terms in this part have special meanings?

180.115 What do Subparts A through I of this part do?

180.120 Do Subparts A through I of this part apply to me?

180.125 What is the purpose of the nonprocurement debarment and
suspension

system?

180.130 How does an exclusion restrict a person\'s involvement in
covered

transactions?

180.135 May a Federal agency grant an exception to let an excluded
person

participate in a covered transaction?

180.140 Does an exclusion under the nonprocurement system affect a
person\'s

eligibility for Federal procurement contracts?

180.145 Does an exclusion under the Federal procurement system affect a

person\'s eligibility to participate in nonprocurement transactions?

180.150 Against whom may a Federal agency take an exclusion action?

180.155 How do I know if a person is excluded?

**Subpart B\--Covered Transactions**

180.200 What is a covered transaction?

180.205 Why is it important to know if a particular transaction is a
covered

transaction?

180.210 Which nonprocurement transactions are covered transactions?

180.215 Which nonprocurement transactions are not covered transactions?

180.220 Are any procurement contracts included as covered transactions?

180.225 How do I know if a transaction in which I may participate is a
covered transaction?

**Subpart C\--Responsibilities of Participants Regarding Transactions**

**Doing Business With Other Persons**

180.300 What must I do before I enter into a covered transaction with
another

person at the next lower tier?

180.305 May I enter into a covered transaction with an excluded or

disqualified person?

180.310 What must I do if a Federal agency excludes a person with whom I
am

already doing business in a covered transaction?

180.315 May I use the services of an excluded person as a principal
under a

covered transaction?

180.320 Must I verify that principals of my covered transactions are
eligible

to participate?

180.325 What happens if I do business with an excluded person in a
covered

transaction?

180.330 What requirements must I pass down to persons at lower tiers
with

whom I intend to do business?

**Disclosing Information\--Primary Tier Participants**

180.335 What information must I provide before entering into a covered

transaction with a Federal agency?

180.340 If I disclose unfavorable information required under §180.335
will I

be prevented from participating in the transaction?

180.345 What happens if I fail to disclose information required under

§180.335?

180.350 What must I do if I learn of information required under §180.335
after entering into a covered transaction with a Federal agency?

**Disclosing Information\--Lower Tier Participants**

180.355 What information must I provide to a higher tier participant
before

entering into a covered transaction with that participant?

180.360 What happens if I fail to disclose information required under

§180.355?

180.365 What must I do if I learn of information required under §180.355
after entering into a covered transaction with a higher tier
participant?

**Subpart D\--Responsibilities of Federal Agency Officials Regarding
Transactions**

180.400 May I enter into a transaction with an excluded or disqualified

person?

180.405 May I enter into a covered transaction with a participant if a

principal of the transaction is excluded?

180.410 May I approve a participant\'s use of the services of an
excluded

person?

180.415 What must I do if a Federal agency excludes the participant or a

principal after I enter into a covered transaction?

180.420 May I approve a transaction with an excluded or disqualified
person at a lower tier?

180.425 When do I check to see if a person is excluded or disqualified?

180.430 How do I check to see if a person is excluded or disqualified?

180.435 What must I require of a primary tier participant?

180.440 What action may I take if a primary tier participant knowingly
does

business with an excluded or disqualified person?

180.445 What action may I take if a primary tier participant fails to
disclose the information required under §180.335?

180.450 What may I do if a lower tier participant fails to disclose the

information required under §180.355 to the next higher tier?

**Subpart E\--Excluded Parties List System**

180.500 What is the purpose of the Excluded Parties List System (EPLS)?

180.505 Who uses the EPLS?

180.510 Who maintains the EPLS?

180.515 What specific information is in the EPLS?

180.520 Who places the information into the EPLS?

180.525 Whom do I ask if I have questions about a person in the EPLS?

180.530 Where can I find the EPLS?

**Subpart F\--General Principles Relating to Suspension and Debarment
Actions**

180.600 How do suspension and debarment actions start?

180.605 How does suspension differ from debarment?

180.610 What procedures does a Federal agency use in suspension and
debarment

actions?

180.615 How does a Federal agency notify a person of a suspension or
debarment action?

180.620 Do Federal agencies coordinate suspension and debarment actions?

180.625 What is the scope of a suspension or debarment?

180.630 May a Federal agency impute the conduct of one person to
another?

180.635 May a Federal agency settle a debarment or suspension action?

180.640 May a settlement include a voluntary exclusion?

180.645 Do other Federal agencies know if an agency agrees to a
voluntary

exclusion?

**Subpart G\--Suspension**

180.700 When may the suspending official issue a suspension?

180.705 What does the suspending official consider in issuing a
suspension?

180.710 When does a suspension take effect?

180.715 What notice does the suspending official give me if I am
suspended?

180.720 How may I contest a suspension?

180.725 How much time do I have to contest a suspension?

180.730 What information must I provide to the suspending official if I

contest the suspension?

180.735 Under what conditions do I get an additional opportunity to
challenge

the facts on which the suspension is based?

180.740 Are suspension proceedings formal?

180.745 How is fact-finding conducted?

180.750 What does the suspending official consider in deciding whether
to

continue or terminate my suspension?

180.755 When will I know whether the suspension is continued or
terminated?

180.760 How long may my suspension last?

**Subpart H\--Debarment**

180.800 What are the causes for debarment?

180.805 What notice does the debarring official give me if I am proposed
for

debarment?

180.810 When does a debarment take effect?

180.815 How may I contest a proposed debarment?

180.820 How much time do I have to contest a proposed debarment?

180.825 What information must I provide to the debarring official if I
contest the proposed debarment?

180.830 Under what conditions do I get an additional opportunity to
challenge

the facts on which the proposed debarment is based?

180.835 Are debarment proceedings formal?

180.840 How is fact-finding conducted?

180.845 What does the debarring official consider in deciding whether to
debar me?

180.850 What is the standard of proof in a debarment action?

180.855 Who has the burden of proof in a debarment action?

180.860 What factors may influence the debarring official\'s decision?

180.865 How long may my debarment last?

180.870 When do I know if the debarring official debars me?

180.875 May I ask the debarring official to reconsider a decision to
debar me?

180.880 What factors may influence the debarring official during

reconsideration?

180.885 May the debarring official extend a debarment?

**Subpart I\--Definitions**

180.900 Adequate evidence.

180.905 Affiliate.

180.910 Agent or representative.

180.915 Civil judgment.

180.920 Conviction.

180.925 Debarment.

180.930 Debarring official.

180.935 Disqualified.

180.940 Excluded or exclusion.

180.945 Excluded Parties List System (EPLS).

180.950 Federal agency.

180.955 Indictment.

180.960 Ineligible or ineligibility.

180.965 Legal proceedings.

180.970 Nonprocurement transaction.

180.975 Notice.

180.980 Participant.

180.985 Person.

180.990 Preponderance of the evidence.

180.995 Principal.

180.1000 Respondent.

180.1005 State.

180.1010 Suspending official.

180.1015 Suspension.

180.1020 Voluntary exclusion or voluntarily excluded.

**Appendix to Part 180 \-- Covered Transactions**

**Authority:** Sec. 2455, Pub. L. 103-355, 108 Stat. 3327; E.O. 12549, 3
CFR, 1986 Comp., p.189; E.O. 12689, 3 CFR, 1989 Comp.,

p .235.

**§180.05 What does this part do?**

This part provides Office of Management and Budget (OMB) guidance for
Federal agencies on the governmentwide debarment and suspension system
for nonprocurement programs and activities.

**§180.10 How is this part organized?**

This part is organized in two segments.

\(a\) Sections 180.05 through 180.45 contain general policy direction
for Federal agencies' use of the standards in Subparts A through I of
this part.

\(b\) Subparts A through I of this part contain uniform governmentwide
standards that Federal agencies are to use to specify\--

\(1\) The types of transactions that are covered by the nonprocurement
debarment and suspension system;

\(2\) The effects of an exclusion under that nonprocurement system,
including reciprocal effects with the governmentwide debarment and
suspension system for procurement;

\(3\) The criteria and minimum due process to be used in nonprocurement
debarment and suspension actions; and

\(4\) Related policies and procedures to ensure the effectiveness of
those actions.

**§180.15 To whom does the guidance apply?**

The guidance provides OMB guidance only to Federal agencies. Publication
of the guidance in the CFR does not change its nature\--it is guidance
and not regulation. Federal agencies' implementation of the guidance
governs the rights and responsibilities of other persons affected by the
nonprocurement debarment and suspension system.

**§180.20 What must a Federal agency do to implement these guidelines?**

As required by Section 3 of E.O. 12549, each Federal agency with
nonprocurement programs and activities covered by Subparts A through I
of the guidance must issue regulations consistent with those subparts.

**§180.25 What must a Federal agency address in its implementation of
the guidance?**

Each Federal agency implementing regulation:

\(a\) Must establish policies and procedures for that agency's
nonprocurement debarment and suspension programs and activities that are
consistent with the guidance. When adopted by a Federal agency, the
provisions of the guidance has regulatory effect for that agency's
programs and activities.

\(b\) Must address some matters for which these guidelines give each
Federal agency some discretion. Specifically, the regulation must\--

\(1\) Identify either the Federal agency head or the title of the
designated official who is authorized to grant exceptions under §180.135
to let an excluded person participate in a covered transaction.

\(2\) State whether the agency includes as covered transactions an
additional tier of contracts awarded under covered nonprocurement
transactions, as permitted under §180.220(c).

\(3\) Identify the method(s) an agency official may use, when entering
into a covered transaction with a primary tier participant, to
communicate to the participant the requirements described in §180.435.
Examples of methods are an award term that requires compliance as a
condition of the award; an assurance of compliance obtained at time of
application; or a certification.

\(4\) State whether the Federal agency specifies a particular method
that participants must use to communicate compliance requirements to
lower‑tier participants, as described in §180.330(a). If there is a
specified method, the regulation needs to require agency officials, when
entering into covered transactions with primary tier participants, to
communicate that requirement.

\(c\) May also, at the agency's option:

\(1\) Identify any specific types of transactions that the Federal
agency includes as "nonprocurement transactions" in addition to the
examples provided in §180.970.

\(2\) Identify any types of nonprocurement transactions that the Federal
agency exempts from coverage under these guidelines, as authorized under
§ 180.215(g)(2).

\(3\) Identify specific examples of types of individuals who would be
"principals" under the Federal agency's nonprocurement programs and
transactions, in addition to the types of individuals described at
§180.995.

\(4\) Specify the Federal agency's procedures, if any, by which a
respondent may appeal a suspension or debarment decision.

\(5\) Identify by title the officials designated by the Federal agency
head as debarring officials under §180.930 or suspending officials under
§180.1010.

\(6\) Include a subpart covering disqualifications, as authorized in
§180.45.

\(7\) Include any provisions authorized by OMB.

**§180.30 Where does a Federal agency implement these guidelines?**

Each Federal agency that participates in the governmentwide
nonprocurement debarment and suspension system must issue a regulation
implementing these guidelines within its chapter in Subtitle B of this
title of the Code of Federal Regulations.

**§180.35 By when must a Federal agency implement these guidelines?**

Federal agencies must submit proposed regulations to the OMB for review
within nine months of the issuance of these guidelines and issue final
regulations within eighteen months of these guidelines.

**§180.40 How are these guidelines maintained?**

The Interagency Committee on Debarment and Suspension established by
Section 4 of E.O. 12549 recommends to the OMB any needed revisions to
the guidelines in this part. The OMB publishes proposed changes to the
guidelines in the Federal Register for public comment, considers
comments with the help of the Interagency Committee on Debarment and
Suspension, and issues the final guidelines.

**§180.45 Do these guidelines cover persons who are disqualified, as
well as those who are excluded from nonprocurement transactions?**

A Federal agency may add a subpart covering disqualifications to its
regulation implementing these guidelines, but the guidelines in Subparts
A through I of this part\--

\(a\) Address disqualified persons only to\--

\(1\) Provide for their inclusion in the EPLS; and

\(2\) State responsibilities of Federal agencies and participants to
check for disqualified persons before entering into covered
transactions.

\(b\) Do not specify the\--

\(1\) Transactions for which a disqualified person is ineligible. Those
transactions vary on a case-by-case basis, because they depend on the
language of the specific statute, Executive order or regulation that
caused the disqualification;

\(2\) Entities to which a disqualification applies; or

\(3\) Process that a Federal agency uses to disqualify a person. Unlike
exclusion under Subparts A through I of this part, disqualification is
frequently not a discretionary action that a Federal agency takes, and
may include special procedures.

**Subpart A- General**

**§180.100 How are Subparts A through I organized?**

\(a\) Each subpart contains information related to a broad topic or
specific audience with special responsibilities, as shown in the
following table:

  ----------------- ------------------------------------------------------
  In subpart\...    You will find provisions related to \...

  A\...\...\.....   general information about Subparts A through I of this
                    part.

  B\...\...\.....   the types of transactions that are covered by the
                    Governmentwide nonprocurement suspension and debarment
                    system.

  C\...\...\.....   the responsibilities of persons who participate in
                    covered transactions.

  D\...\...\.....   the responsibilities of Federal agency officials who
                    are authorized to enter into covered transactions.

  E\...\...\.....   the responsibilities of Federal agencies for entering
                    information into the EPLS

  F\...\...\.....   the general principles governing suspension,
                    debarment, voluntary exclusion and settlement.

  G\...\...\.....   suspension actions.

  H\...\...\.....   debarment actions.

  I\...\...\.....   definitions of terms used in this part.
  ----------------- ------------------------------------------------------

\(b\) The following table shows which subparts may be of special
interest to you, depending on who you are:

  -------------------------------------------------------- -----------------------
  If you are\...                                           See subpart(s)\...

  (1)a participant or principal in a nonprocurement        A, B, C and I.
  transaction\...\...\...\...\....                         

  \(2\) a respondent in a suspension                       A, B, F, G and I.
  action\...\...\...\...\...\...\...\...\...\...\...\...   

  \(3\) a respondent in a debarment action\....            A, B, F, H and I.

  \(4\) a suspending official\...\...\...\...\.....        A, B, E, F, G and I.

  \(5\) a debarring official\...\...\...\...\...\...       A, B, D, F, H and I.

  \(6\) an Federal agency official authorized to enter     A, B, D, E and I.
  into a covered transaction\...\...\...\...\...           
  -------------------------------------------------------- -----------------------

**§180.105 How is this part written?**

\(a\) This part uses a \"plain language\" format to make it easier for
the general public and business community to use. The section headings
and text, often in the form of questions and answers, must be read
together.

\(b\) Pronouns used within this part, such as \"I\" and \"you,\" change
from subpart to subpart depending on the audience being addressed.

\(c\) The \"Covered Transactions\" diagram in the appendix to this part
shows the levels or \"tiers\" at which a Federal agency may enforce an
exclusion.

**§180.110 Do terms in this part have special meanings?**

This part uses terms throughout the text that have special meaning.
Those terms are defined in Subpart I of this part. For example, three
important terms are\--

\(a\) [Exclusion or excluded]{.underline}, which refers only to
discretionary actions taken by a suspending or debarring official under
Executive Order 12549 and Executive Order 12689 or under the Federal
Acquisition Regulation (48 CFR Part 9, Subpart 9.4);

\(b\) [Disqualification or disqualified]{.underline}, which refers to
prohibitions under specific statutes, executive orders (other than
Executive Order 12549 and Executive Order 12689), or other authorities.
Disqualifications frequently are not subject to the discretion of a
Federal agency official, may have a different scope than exclusions, or
have special conditions that apply to the disqualification; and

\(c\) [Ineligibility or ineligible]{.underline}, which generally refers
to a person who is either excluded or disqualified.

**§180.115 What do Subparts A through I of this part do?**

Subparts A through I of this part provide for reciprocal exclusion of
persons who have been excluded under the Federal Acquisition Regulation,
and provide for the consolidated listing of all persons who are
excluded, or disqualified by statute, executive order or other legal
authority.

**§180.120 Do Subparts A through I of this part apply to me?**

Portions of Subparts A through I of this part (see table at §180.100(b))
apply to you if you are a\--

\(a\) Person who has been, is, or may reasonably be expected to be, a
participant or principal in a covered transaction;

\(b\) Respondent (a person against whom a Federal agency has initiated a
debarment or suspension action);

\(c\) Federal agency debarring or suspending official; or

\(d\) Federal agency official who is authorized to enter into covered
transactions with non-Federal parties.

**§180.125 What is the purpose of the nonprocurement debarment and
suspension system?**

\(a\) To protect the public interest, the Federal Government ensures the
integrity of Federal programs by conducting business only with
responsible persons.

\(b\) A Federal agency uses the nonprocurement debarment and suspension
system to exclude from Federal programs persons who are not presently
responsible.

\(c\) An exclusion is a serious action that a Federal agency may take
only to protect the public interest. A Federal agency may not exclude a
person or commodity for the purposes of punishment.

**§180.130 How does an exclusion restrict a person\'s involvement in
covered transactions?**

With the exceptions stated in §§180.135, 315, and 420, a person who is
excluded by any Federal agency may not:

\(a\) Be a participant in a Federal agency transaction that is a covered
transaction; or

\(b\) Act as a principal of a person participating in one of those
covered transactions.

**§180.135 May a Federal agency grant an exception to let an excluded
person participate in a covered transaction?**

\(a\) A Federal agency head or designee may grant an exception
permitting an excluded person to participate in a particular covered
transaction. If the agency head or designee grants an exception, the
exception must be in writing and state the reason(s) for deviating from
the governmentwide policy in Executive Order 12549.

\(b\) An exception granted by one Federal agency for an excluded person
does not extend to the covered transactions of another Federal agency.

**§180.140 Does an exclusion under the nonprocurement system affect a
person\'s eligibility for Federal procurement contracts?**

If any Federal agency excludes a person under Executive Order 12549 or
Executive Order 12689, on or after August 25, 1995, the excluded person
is also ineligible for Federal procurement transactions under the FAR.
Therefore, an exclusion under this part has reciprocal effect in Federal
procurement transactions.

**§180.145 Does an exclusion under the Federal procurement system affect
a person\'s eligibility to participate in nonprocurement transactions?**

If any Federal agency excludes a person under the FAR on or after August
25, 1995, the excluded person is also ineligible to participate in
Federal agencies' nonprocurement covered transactions. Therefore, an
exclusion under the FAR has reciprocal effect in Federal nonprocurement
transactions.

**§180.150 Against whom may a Federal agency take an exclusion action?**

Given a cause that justifies an exclusion under this part, a Federal
agency may exclude any person who has been, is, or may reasonably be
expected to be a participant or principal in a covered transaction.

**§180.155 How do I know if a person is excluded?**

Check the Governmentwide Excluded Parties List System (EPLS) to
determine whether a person is excluded. The General Services
Administration (GSA) maintains the EPLS and makes it available, as
detailed in Subpart E of this part. When a Federal agency takes an
action to exclude a person under the nonprocurement or procurement
debarment and suspension system, the agency enters the information about
the excluded person into the EPLS.

**Subpart B-- Covered Transactions**

**§180.200 What is a covered transaction?**

A covered transaction is a nonprocurement or procurement transaction
that is subject to the prohibitions of this part. It may be a
transaction at\--

\(a\) The primary tier, between a Federal agency and a person (see
appendix to this part); or

\(b\) A lower tier, between a participant in a covered transaction and
another person.

**§180.205 Why is it important if a particular transaction is a covered
transaction?**

The importance of whether a transaction is a covered transaction depends
upon who you are.

\(a\) As a participant in the transaction, you have the responsibilities
laid out in Subpart C of this part. Those include responsibilities to
the person or Federal agency at the next higher tier from whom you
received the transaction, if any. They also include responsibilities if
you subsequently enter into other covered transactions with persons at
the next lower tier.

\(b\) As a Federal official who enters into a primary tier transaction,
you have the responsibilities laid out in Subpart D of this part.

\(c\) As an excluded person, you may not be a participant or principal
in the transaction unless\--

\(1\) The person who entered into the transaction with you allows you to
continue your involvement in a transaction that predates your exclusion,
as permitted under §180.310 or §180.415; or

\(2\) A Federal agency official obtains an exception from the agency
head or designee to allow you to be involved in the transaction, as
permitted under §180.135.

**§180.210 Which nonprocurement transactions are covered transactions?**

All nonprocurement transactions, as defined in §180.970, are covered
transactions unless listed in the exemptions under §180.215.

**§180.215 Which nonprocurement transactions are not covered
transactions?**

The following types of nonprocurement transactions are not covered
transactions:

\(a\) A direct award to\--

\(1\) A foreign government or foreign governmental entity;

\(2\) A public international organization;

\(3\) An entity owned (in whole or in part) or controlled by a foreign
government; or

\(4\) Any other entity consisting wholly or partially of one or more
foreign governments or foreign governmental entities.

\(b\) A benefit to an individual as a personal entitlement without
regard to the individual\'s present responsibility (but benefits
received in an individual\'s business capacity are not excepted). For
example, if a person receives social security benefits under the
Supplemental Security Income provisions of the Social Security Act, 42
U.S.C. 1301 et seq., those benefits are not covered transactions and,
therefore, are not affected if the person is excluded.

\(c\) Federal employment.

\(d\) A transaction that a Federal agency needs to respond to a national
or agency-recognized emergency or disaster.

\(e\) A permit, license, certificate or similar instrument issued as a
means to regulate public health, safety or the environment, unless a
Federal agency specifically designates it to be a covered transaction.

\(f\) An incidental benefit that results from ordinary governmental
operations.

\(g\) Any other transaction if\--

\(1\) The application of an exclusion to the transaction is prohibited
by law; or

\(2\) A Federal agency's regulation exempts it from coverage under this
part.

**§180.220 Are any procurement contracts included as covered
transactions?**

\(a\) Covered transactions under this part\--

\(1\) Do not include any procurement contracts awarded directly by a
Federal agency; but

\(2\) Do include some procurement contracts awarded by non-Federal
participants in nonprocurement covered transactions.

\(b\) Specifically, a contract for goods or services is a covered
transaction if any of the following applies:

\(1\) The contract is awarded by a participant in a nonprocurement
transaction that is covered under §180.210, and the amount of the
contract is expected to equal or exceed \$25,000.

\(2\) The contract requires the consent of an official of a Federal
agency. In that case, the contract, regardless of the amount, always is
a covered transaction, and it does not matter who awarded it. For
example, it could be a subcontract awarded by a contractor at a tier
below a nonprocurement transaction, as shown in the appendix to this
part.

\(3\) The contract is for Federally-required audit services.

\(c\) A subcontract also is a covered transaction if, ‑‑

\(1\) It is awarded by a participant in a procurement transaction under
a nonprocurement transaction of a Federal agency that extends the
coverage of paragraph (b)(1) of this section to additional tiers of
contracts (see the diagram in the appendix to this part showing that
optional lower tier coverage); and

> \(2\) The value of the subcontract is expected to equal or exceed
> \$25,000.

**§180.225 How do I know if a transaction in which I may participate is
a covered transaction?**

As a participant in a transaction, you will know that it is a covered
transaction because the Federal agency regulations governing the
transaction, the appropriate Federal agency official or participant at
the next higher tier who enters into the transaction with you, will tell
you that you must comply with applicable portions of this part.

**Subpart C\--Responsibilities of Participants Regarding Transactions**

**Doing Business With Other Persons**

**§180.300 What must I do before I enter into a covered transaction with
another person at the next lower tier?**

When you enter into a covered transaction with another person at the
next lower tier, you must verify that the person with whom you intend to
do business is not excluded or disqualified. You do this by:

\(a\) Checking the EPLS; or

> \(b\) Collecting a certification from that person; or

\(c\) Adding a clause or condition to the covered transaction with that
person.

**§180.305 May I enter into a covered transaction with an excluded or
disqualified person?**

\(a\) You as a participant may not enter into a covered transaction with
an excluded person, unless the Federal agency responsible for the
transaction grants an exception under §180.135.

\(b\) You may not enter into any transaction with a person who is
disqualified from that transaction, unless you have obtained an
exception under the disqualifying statute, Executive order, or
regulation.

**§180.310 What must I do if a Federal agency excludes a person with
whom I am already doing business in a covered transaction?**

\(a\) You as a participant may continue covered transactions with an
excluded person if the transactions were in existence when the agency
excluded the person. However, you are not required to continue the
transactions, and you may consider termination. You should make a
decision about whether to terminate and the type of termination action,
if any, only after a thorough review to ensure that the action is proper
and appropriate.

\(b\) You may not renew or extend covered transactions (other than
no-cost time extensions) with any excluded person, unless the Federal
agency responsible for the transaction grants an exception under
§180.135.

**§180.315 May I use the services of an excluded person as a principal
under a covered transaction?**

\(a\) You as a participant may continue to use the services of an
excluded person as a principal under a covered transaction if you were
using the services of that person in the transaction before the person
was excluded. However, you are not required to continue using that
person\'s services as a principal. You should make a decision about
whether to discontinue that person's services only after a thorough
review to ensure that the action is proper and appropriate.

\(b\) You may not begin to use the services of an excluded person as a
principal under a covered transaction unless the Federal agency
responsible for the transaction grants an exception under §180.135.

**§180.320 Must I verify that principals of my covered transactions are
eligible to participate?**

Yes, you as a participant are responsible for determining whether any of
your principals of your covered transactions is excluded or disqualified
from participating in the transaction.

You may decide the method and frequency by which you do so. You may, but
you are not required to, check the EPLS.

**§180.325 What happens if I do business with an excluded person in a
covered transaction?**

If as a participant you knowingly do business with an excluded person,
the Federal agency responsible for your transaction may disallow costs,
annul or terminate the transaction, issue a stop work order, debar or
suspend you, or take other remedies as appropriate.

**§180.330 What requirements must I pass down to persons at lower tiers
with whom I intend to do business?**

Before entering into a covered transaction with a participant at the
next lower tier, you must require that participant to\--

\(a\) Comply with this subpart as a condition of participation in the
transaction. You may do so using any method(s), unless the regulation of
the Federal agency responsible for the transaction requires you to use
specific methods.

\(b\) Pass the requirement to comply with this subpart to each person
with whom the participant enters into a covered transaction at the next
lower tier.

**Disclosing Information-- Primary Tier Participants**

**§180.335 What information must I provide before entering into a
covered transaction with a Federal agency?**

Before you enter into a covered transaction at the primary tier, you as
the participant must notify the Federal agency office that is entering
into the transaction with you, if you know that you or any of the
principals for that covered transaction:

\(a\) Are presently excluded or disqualified;

\(b\) Have been convicted within the preceding three years of any of the
offenses listed in §180.800(a) or had a civil judgment rendered against
you for one of those offenses within that time period;

\(c\) Are presently indicted for or otherwise criminally or civilly
charged by a governmental entity (Federal, state or local) with
commission of any of the offenses listed in §180.800(a); or

\(d\) Have had one or more public transactions (Federal, state, or
local) terminated within the preceding three years for cause or default.

**§180.340 If I disclose unfavorable information required under
§180.335, will I be prevented from participating in the transaction?**

As a primary tier participant, your disclosure of unfavorable
information about yourself or a principal under §180.335 will not
necessarily cause a Federal agency to deny your participation in the
covered transaction. The agency will consider the information when it
determines whether to enter into the covered transaction. The agency
will also consider any additional information or explanation that you
elect to submit with the disclosed information.

**§180.345 What happens if I fail to disclose information required under
§180.335?**

If a Federal agency later determines that you failed to disclose
information under §180.335 that you knew at the time you entered into
the covered transaction, the agency may\--

\(a\) Terminate the transaction for material failure to comply with the
terms and conditions of the transaction; or

\(b\) Pursue any other available remedies, including suspension and
debarment.

**§180.350 What must I do if I learn of information required under
§180.335 after entering into a covered transaction with a Federal
agency?**

At any time after you enter into a covered transaction, you must give
immediate written notice to the Federal agency office with which you
entered into the transaction if you learn either that\--

\(a\) You failed to disclose information earlier, as required by
§180.335; or

\(b\) Due to changed circumstances, you or any of the principals for the
transaction now meet any of the criteria in §180.335.

**Disclosing Information-- Lower Tier Participants**

**§180.355 What information must I provide to a higher tier participant
before entering into a covered transaction with that participant?**

Before you enter into a covered transaction with a person at the next
higher tier, you as a lower tier participant must notify that person if
you know that you or any of the principals are presently excluded or
disqualified.

**§180.360 What happens if I fail to disclose information required under
§180.355?**

If a Federal agency later determines that you failed to tell the person
at the higher tier that you were excluded or disqualified at the time
you entered into the covered transaction with that person, the agency
may pursue any available remedies, including suspension and debarment.

**§180.365 What must I do if I learn of information required under
§180.355 after entering into a covered transaction with a higher tier
participant?**

At any time after you enter into a lower tier covered transaction with a
person at a higher tier, you must provide immediate written notice to
that person if you learn either that‑‑

\(a\) You failed to disclose information earlier, as required by
§180.355; or

\(b\) Due to changed circumstances, you or any of the principals for the
transaction now meet any of the criteria in §180.355.

**Subpart D-- Responsibilities of Federal Agency Officials Regarding
Transactions**

**§180.400 May I enter into a transaction with an excluded or
disqualified person?**

\(a\) You as a Federal agency official may not enter into a covered
transaction with an excluded person unless you obtain an exception under
§180.135.

\(b\) You may not enter into any transaction with a person who is
disqualified from that transaction, unless you obtain a waiver or
exception under the statute, Executive order, or regulation that is the
basis for the person\'s disqualification.

**§180.405 May I enter into a covered transaction with a participant if
a principal of the transaction is excluded?**

As a Federal agency official, you may not enter into a covered
transaction with a participant if you know that a principal of the
transaction is excluded, unless you obtain an exception under §180.135.

**§180.410 May I approve a participant\'s use of the services of an
excluded person?**

After entering into a covered transaction with a participant, you as a
Federal agency official may not approve a participant\'s use of an
excluded person as a principal under that transaction, unless you obtain
an exception under §180.135.

**§180.415 What must I do if a Federal agency excludes the participant
or a principal after I enter into a covered transaction?**

\(a\) You as a Federal agency official may continue covered transactions
with an excluded person, or under which an excluded person is a
principal, if the transactions were in existence when the person was
excluded. You are not required to continue the transactions, however,
and you may consider termination. You should make a decision about
whether to terminate and the type of termination action, if any, only
after a thorough review to ensure that the action is proper.

\(b\) You may not renew or extend covered transactions (other than
no-cost time extensions) with any excluded person, or under which an
excluded person is a principal, unless you obtain an exception under
§180.135.

**§180.420 May I approve a transaction with an excluded or disqualified
person at a lower tier?**

If a transaction at a lower tier is subject to your approval, you as a
Federal agency official may not approve‑‑

\(a\) A covered transaction with a person who is currently excluded,
unless you obtain an exception under §180.135; or

\(b\) A transaction with a person who is disqualified from that
transaction, unless you obtain a waiver or exception under the statute,
Executive order, or regulation that is the basis for the person\'s
disqualification.

**§180.425 When do I check to see if a person is excluded or
disqualified?**

As a Federal agency official, you must check to see if a person is
excluded or disqualified before you‑‑

\(a\) Enter into a primary tier covered transaction;

\(b\) Approve a principal in a primary tier covered transaction;

\(c\) Approve a lower tier participant if your agency's approval of the
lower tier participant is required; or

\(d\) Approve a principal in connection with a lower tier transaction if
your agency's approval of the principal is required.

**§180.430 How do I check to see if a person is excluded or
disqualified?**

You check to see if a person is excluded or disqualified in two ways:

\(a\) You as a Federal agency official must check the EPLS when you take
any action listed in §180.425.

\(b\) You must review information that a participant gives you, as
required by §180.335, about its status or the status of the principals
of a transaction.

**§180.435 What must I require of a primary tier participant?**

You as a Federal agency official must require each participant in a
primary tier covered transaction to‑‑

\(a\) Comply with subpart C of this part as a condition of participation
in the transaction; and

\(b\) Communicate the requirement to comply with Subpart C of this part
to persons at the next lower tier with whom the primary tier participant
enters into covered transactions.

**§180.440 What action may I take if a primary tier participant
knowingly does business with an excluded or disqualified person?**

If a participant knowingly does business with an excluded or
disqualified person, you as a Federal agency official may refer the
matter for suspension and debarment consideration. You may also disallow
costs, annul or terminate the transaction, issue a stop work order, or
take any other appropriate remedy.

**§180.445 What action may I take if a primary tier participant fails to
disclose the information required under §180.335?**

If you as a Federal agency official determine that a participant failed
to disclose information, as required by §180.335, at the time it entered
into a covered transaction with you, you may‑‑

\(a\) Terminate the transaction for material failure to comply with the
terms and conditions of the transaction; or

\(b\) Pursue any other available remedies, including suspension and
debarment.

**§180.450 What action may I take if a lower tier participant fails to
disclose the information required under §180.355 to the next higher
tier?**

If you as a Federal agency official determine that a lower tier
participant failed to disclose information, as required by §180.355, at
the time it entered into a covered transaction with a participant at the
next higher tier, you may pursue any remedies available to you,
including the initiation of a suspension or debarment action.

**Subpart E-- Excluded Parties List System**

**§180.500 What is the purpose of the Excluded Parties List System
(EPLS)?**

The EPLS is a widely available source of the most current information
about persons who are excluded or disqualified from covered
transactions.

**§180.505 Who uses the EPLS?**

\(a\) Federal agency officials use the EPLS to determine whether to
enter into a transaction with a person, as required under §180.430.

\(b\) Participants also may, but are not required to, use the EPLS to
determine if‑‑

\(1\) Principals of their transactions are excluded or disqualified, as
required under §180.320; or

\(2\) Persons with whom they are entering into covered transactions at
the next lower tier are excluded or disqualified.

\(c\) The EPLS is available to the general public.

**§180.510 Who maintains the EPLS?**

The General Services Administration (GSA) maintains the EPLS. When a
Federal agency takes an action to exclude a person under the
nonprocurement or procurement debarment and suspension system, the
agency enters the information about the excluded person into the EPLS.

**§180.515 What specific information is in the EPLS?**

\(a\) At a minimum, the EPLS indicates---

\(1\) The full name (where available) and address of each excluded and
disqualified person, in alphabetical order, with cross references if
more than one name is involved in a single action;

\(2\) The type of action;

\(3\) The cause for the action;

\(4\) The scope of the action;

\(5\) Any termination date for the action;

\(6\) The Federal agency and name and telephone number of the agency
point of contact for the action; and

\(7\) The Dun and Bradstreet Number (DUNS), or other similar code
approved by the GSA, of the excluded or disqualified person, if
available.

(b)(1) The database for the EPLS includes a field for the Taxpayer
Identification Number (TIN) (the social security number (SSN) for an
individual) of an excluded or disqualified person.

\(2\) Agencies disclose the SSN of an individual to verify the identity
of an individual, only if permitted under the Privacy Act of 1974 and,
if appropriate, the Computer Matching and Privacy Protection Act of
1988, as codified in 5 U.S.C. 552(a).

**§180.520 Who places the information into the EPLS?**

Federal agency officials who take actions to exclude persons under this
part or officials who are responsible for identifying disqualified
persons must enter the following information about those persons into
the EPLS:

\(a\) Information required by §180.515(a);

\(b\) The Taxpayer Identification Number (TIN) of the excluded or
disqualified person, including the social security number (SSN) for an
individual, if the number is available and may be disclosed under law;

\(c\) Information about an excluded or disqualified person, generally
within five working days, after‑‑

\(1\) Taking an exclusion action;

\(2\) Modifying or rescinding an exclusion action;

\(3\) Finding that a person is disqualified; or

\(4\) Finding that there has been a change in the status of a person who
is listed as disqualified.

**§180.525 Whom do I ask if I have questions about a person in the
EPLS?**

If you have questions about a listed person in the EPLS, ask the point
of contact for the Federal agency that placed the person\'s name into
the EPLS. You may find the agency point of contact from the EPLS.

**§180.530 Where can I find the EPLS?**

You may access the EPLS through the Internet, currently at
[http://epls.arnet.gov](http://epls.arnet.gov/) or http://www.epls.gov.

**Subpart F-- General Principles Relating to Suspension and Debarment
Actions**

**§180.600 How do suspension and debarment actions start?**

When Federal agency officials receive information from any source
concerning a cause for suspension or debarment, they will promptly
report it and the agency will investigate. The officials refer the
question of whether to suspend or debar you to their suspending or
debarring official for consideration, if appropriate.

**§180.605 How does suspension differ from debarment?**

Suspension differs from debarment in that---

+---------------------------------------+------------------------------+
| A suspending official . . .           | A debarring official . . .   |
+---------------------------------------+------------------------------+
| \(a\) Imposes suspension as a         | Imposes debarment for a      |
| temporary status of ineligibility for |                              |
| procurement and nonprocurement        | specified period as a final  |
| transactions, pending completion of   | determination that a person  |
| an investigation or legal             | is not presently             |
| proceedings.                          | responsible.                 |
+---------------------------------------+------------------------------+
| \(b\) Must\--                         | Must conclude, based on a    |
|                                       | [preponderance of the        |
| \(1\) Have [adequate                  | evidence]{.underline}, that  |
| evidence]{.underline} that there may  | the person has engaged in    |
| be a cause for debarment of a person; | conduct that warrants        |
| and                                   | debarment.                   |
|                                       |                              |
| \(2\) Conclude that [immediate        |                              |
| action]{.underline} is necessary to   |                              |
| protect the Federal interest.         |                              |
+---------------------------------------+------------------------------+
| \(c\) Usually imposes the suspension  | Imposes debarment            |
| [first]{.underline}, and then         | [after]{.underline} giving   |
| promptly notifies the suspended       | the respondent notice of the |
| person, giving the person an          | action and an opportunity to |
| opportunity to contest the suspension | contest the proposed         |
| and have it lifted.                   | debarment.                   |
+---------------------------------------+------------------------------+

**§180.610 What procedures does a Federal agency use in suspension and
debarment actions?**

In deciding whether to suspend or debar you, a Federal agency handles
the actions as informally as practicable, consistent with principles of
fundamental fairness.

\(a\) For suspension actions, a Federal agency uses the procedures in
this subpart and Subpart G of this part.

\(b\) For debarment actions, a Federal agency uses the procedures in
this subpart and Subpart H of this part.

**§180.615 How does a Federal agency notify a person of a suspension or
debarment action?**

\(a\) The suspending or debarring official sends a written notice to the
last known street address, facsimile number, or e‑mail address of‑‑

\(1\) You or your identified counsel; or

\(2\) Your agent for service of process, or any of your partners,
officers, directors, owners, or joint venturers.

\(b\) The notice is effective if sent to any of these persons.

**§180.620 Do Federal agencies coordinate suspension and debarment
actions?**

Yes, when more than one Federal agency has an interest in a suspension
or debarment, the agencies may consider designating one agency as the
lead agency for making the decision. Agencies are encouraged to
establish methods and procedures for coordinating their suspension and
debarment actions.

**§180.625 What is the scope of a suspension or debarment?**

If you are suspended or debarred, the suspension or debarment is
effective as follows:

\(a\) Your suspension or debarment constitutes suspension or debarment
of all of your divisions and other organizational elements from all
covered transactions, unless the suspension or debarment decision is
limited‑‑

\(1\) By its terms to one or more specifically identified individuals,
divisions, or other organizational elements; or

\(2\) To specific types of transactions.

\(b\) Any affiliate of a participant may be included in a suspension or
debarment action if the suspending or debarring official‑‑

\(1\) Officially names the affiliate in the notice; and

\(2\) Gives the affiliate an opportunity to contest the action.

**§180.630 May a Federal agency impute the conduct of one person to
another?**

For purposes of actions taken under this part, a Federal agency may
impute conduct as follows:

\(a\) [Conduct imputed from an individual to an
organization]{.underline}. A Federal agency may impute the fraudulent,
criminal, or other improper conduct of any officer, director,
shareholder, partner, employee, or other individual associated with an
organization, to that organization when the improper conduct occurred in
connection with the individual\'s performance of duties for or on behalf
of that organization, or with the organization's knowledge, approval or
acquiescence. The organization's acceptance of the benefits derived from
the conduct is evidence of knowledge, approval or acquiescence.

\(b\) [Conduct imputed from an organization to an individual, or between
individuals]{.underline}. A Federal agency may impute the fraudulent,
criminal, or other improper conduct of any organization to an
individual, or from one individual to another individual, if the
individual to whom the improper conduct is imputed either participated
in, had knowledge of, or reason to know of the improper conduct.

\(c\) [Conduct imputed from one organization to another
organization]{.underline}. A Federal agency may impute the fraudulent,
criminal, or other improper conduct of one organization to another
organization when the improper conduct occurred in connection with a
partnership, joint venture, joint application, association or similar
arrangement, or when the organization to whom the improper conduct is
imputed has the power to direct, manage, control or influence the
activities of the organization responsible for the improper conduct.
Acceptance of the benefits derived from the conduct is evidence of
knowledge, approval or acquiescence.

**§180.635 May a Federal agency settle a debarment or suspension
action?**

Yes, a Federal agency may settle a debarment or suspension action at any
time if it is in the best interest of the Federal Government.

**§180.640 May a settlement include a voluntary exclusion?**

Yes, if a Federal agency enters into a settlement with you in which you
agree to be excluded, it is called a voluntary exclusion and has
governmentwide effect.

**§180.645 Do other Federal agencies know if an agency agrees to a
voluntary exclusion?**

\(a\) Yes, the Federal agency agreeing to the voluntary exclusion enters
information about it into the EPLS.

\(b\) Also, any agency or person may contact the Federal agency that
agreed to the voluntary exclusion to find out the details of the
voluntary exclusion.

**Subpart G-- Suspension**

**§180.700 When may the suspending official issue a suspension?**

Suspension is a serious action. Using the procedures of this subpart and
Subpart F of this part, the suspending official may impose suspension
only when that official determines that‑‑

\(a\) There exists an indictment for, or other adequate evidence to
suspect, an offense listed under §180.800(a), or

\(b\) There exists adequate evidence to suspect any other cause for
debarment listed under §180.800(b) through (d); and

\(c\) Immediate action is necessary to protect the public interest.

**§180.705 What does the suspending official consider in issuing a
suspension?**

\(a\) In determining the adequacy of the evidence to support the
suspension, the suspending official considers how much information is
available, how credible it is given the circumstances, whether or not
important allegations are corroborated, and what inferences can
reasonably be drawn as a result. During this assessment, the suspending
official may examine the basic documents, including grants, cooperative
agreements, loan authorizations, contracts, and other relevant
documents.

\(b\) An indictment, conviction, civil judgment, or other official
findings by Federal, State, or local bodies that determine factual
and/or legal matters, constitutes adequate evidence for purposes of
suspension actions.

\(c\) In deciding whether immediate action is needed to protect the
public interest, the suspending official has wide discretion. For
example, the suspending official may infer the necessity for immediate
action to protect the public interest either from the nature of the
circumstances giving rise to a cause for suspension or from potential
business relationships or involvement with a program of the Federal
Government.

**§180.710 When does a suspension take effect?**

A suspension is effective when the suspending official signs the
decision to suspend.

**§180.715 What notice does the suspending official give me if I am
suspended?**

After deciding to suspend you, the suspending official promptly sends
you a Notice of Suspension advising you‑‑

\(a\) That you have been suspended;

\(b\) That your suspension is based on‑‑

\(1\) An indictment;

\(2\) A conviction;

\(3\) Other adequate evidence that you have committed irregularities
which seriously reflect on the propriety of further Federal Government
dealings with you; or

\(4\) Conduct of another person that has been imputed to you, or your
affiliation with a suspended or debarred person;

\(c\) Of any other irregularities in terms sufficient to put you on
notice without disclosing the Federal Government\'s evidence;

\(d\) Of the cause(s) upon which the suspending official relied under
§180.700 for imposing suspension;

\(e\) That your suspension is for a temporary period pending the
completion of an investigation or resulting legal or debarment
proceedings;

\(f\) Of the applicable provisions of this subpart, Subpart F of this
part, and any other agency procedures governing suspension decision
making; and

\(g\) Of the governmentwide effect of your suspension from procurement
and nonprocurement programs and activities.

**§180.720 How may I contest a suspension?**

If you as a respondent wish to contest a suspension, you or your
representative must provide the suspending official with information in
opposition to the suspension. You may do this orally or in writing, but
any information provided orally that you consider important must also be
submitted in writing for the official record.

**§180.725 How much time do I have to contest a suspension?**

\(a\) As a respondent you or your representative must either send, or
make arrangements to appear and present, the information and argument to
the suspending official within 30 days after you receive the Notice of
Suspension.

\(b\) The Federal agency taking the action considers the notice to be
received by you‑‑

\(1\) When delivered, if the agency mails the notice to the last known
street address, or five days after the agency sends it if the letter is
undeliverable;

\(2\) When sent, if the agency sends the notice by facsimile or five
days after the agency sends it if the facsimile is undeliverable; or

\(3\) When delivered, if the agency sends the notice by e-mail or five
days after the agency sends it if the e-mail is undeliverable.

**§180.730 What information must I provide to the suspending official if
I contest the suspension?**

\(a\) In addition to any information and argument in opposition, as a
respondent your submission to the suspending official must identify‑‑

\(1\) Specific facts that contradict the statements contained in the
Notice of Suspension. A general denial is insufficient to raise a
genuine dispute over facts material to the suspension;

\(2\) All existing, proposed, or prior exclusions under regulations
implementing Executive Order 12549 and all similar actions taken by
Federal, state, or local agencies, including administrative agreements
that affect only those agencies;

\(3\) All criminal and civil proceedings not included in the Notice of
Suspension that grew out of facts relevant to the cause(s) stated in the
notice; and

\(4\) All of your affiliates.

\(b\) If you fail to disclose this information, or provide false
information, the Federal agency taking the action may seek further
criminal, civil or administrative action against you, as appropriate.

**§180.735 Under what conditions do I get an additional opportunity to
challenge the facts on which the suspension is based?**

\(a\) You as a respondent will not have an additional opportunity to
challenge the facts if the suspending official determines that‑‑

\(1\) Your suspension is based upon an indictment, conviction, civil
judgment, or other finding by a Federal, State, or local body for which
an opportunity to contest the facts was provided;

\(2\) Your presentation in opposition contains only general denials to
information contained in the Notice of Suspension;

\(3\) The issues raised in your presentation in opposition to the
suspension are not factual in nature, or are not material to the
suspending official\'s initial decision to suspend, or the official\'s
decision whether to continue the suspension; or

\(4\) On the basis of advice from the Department of Justice, an office
of the United States Attorney, a State attorney general\'s office, or a
State or local prosecutor\'s office, that substantial interests of the
government in pending or contemplated legal proceedings based on the
same facts as the suspension would be prejudiced by conducting
fact-finding.

\(b\) You will have an opportunity to challenge the facts if the
suspending official determines that‑‑

\(1\) The conditions in paragraph (a) of this section do not exist; and

\(2\) Your presentation in opposition raises a genuine dispute over
facts material to the suspension.

\(c\) If you have an opportunity to challenge disputed material facts
under this section, the suspending official or designee must conduct
additional proceedings to resolve those facts.

**§180.740 Are suspension proceedings formal?**

\(a\) Suspension proceedings are conducted in a fair and informal
manner. The suspending official may use flexible procedures to allow you
to present matters in opposition. In so doing, the suspending official
is not required to follow formal rules of evidence or procedure in
creating an official record upon which the official will base a final
suspension decision.

\(b\) You as a respondent or your representative must submit any
documentary evidence you want the suspending official to consider.

**§180.745 How is fact-finding conducted?**

\(a\) If fact-finding is conducted‑‑

\(1\) You may present witnesses and other evidence, and confront any
witness presented; and

\(2\) The fact-finder must prepare written findings of fact for the
record.

\(b\) A transcribed record of fact-finding proceedings must be made,
unless you as a respondent and the Federal agency agree to waive it in
advance. If you want a copy of the transcribed record, you may purchase
it.

**§180.750 What does the suspending official consider in deciding
whether to continue or terminate my suspension?**

\(a\) The suspending official bases the decision on all information
contained in the official record. The record includes‑‑

\(1\) All information in support of the suspending official\'s initial
decision to suspend you;

\(2\) Any further information and argument presented in support of, or
opposition to, the suspension; and

\(3\) Any transcribed record of fact-finding proceedings.

\(b\) The suspending official may refer disputed material facts to
another official for findings of fact. The suspending official may
reject any resulting findings, in whole or in part, only after
specifically determining them to be arbitrary, capricious, or clearly
erroneous.

**§180.755 When will I know whether the suspension is continued or
terminated?**

The suspending official must make a written decision whether to
continue, modify, or terminate your suspension within 45 days of closing
the official record. The official record closes upon the suspending
official's receipt of final submissions, information and findings of
fact, if any. The suspending official may extend that period for good
cause.

**§180.760 How long may my suspension last?**

\(a\) If legal or debarment proceedings are initiated at the time of, or
during your suspension, the suspension may continue until the conclusion
of those proceedings. However, if proceedings are not initiated, a
suspension may not exceed 12 months.

\(b\) The suspending official may extend the 12 month limit under
paragraph (a) of this section for an additional 6 months if an office of
a U.S. Assistant Attorney General, U.S. Attorney, or other responsible
prosecuting official requests an extension in writing. In no event may a
suspension exceed 18 months without initiating proceedings under
paragraph (a) of this section.

\(c\) The suspending official must notify the appropriate officials
under paragraph (b) of this section of an impending termination of a
suspension at least 30 days before the 12 month period expires to allow
the officials an opportunity to request an extension.

**Subpart H-- Debarment**

**§180.800 What are the causes for debarment?**

A Federal agency may debar a person for‑‑

\(a\) Conviction of or civil judgment for‑‑

\(1\) Commission of fraud or a criminal offense in connection with
obtaining, attempting to obtain, or performing a public or private
agreement or transaction;

\(2\) Violation of Federal or State antitrust statutes, including those
proscribing price fixing between competitors, allocation of customers
between competitors, and bid rigging;

\(3\) Commission of embezzlement, theft, forgery, bribery, falsification
or destruction of records, making false statements, tax evasion,
receiving stolen property, making false claims, or obstruction of
justice; or

\(4\) Commission of any other offense indicating a lack of business
integrity or business honesty that seriously and directly affects your
present responsibility;

\(b\) Violation of the terms of a public agreement or transaction so
serious as to affect the integrity of an agency program, such as‑‑

\(1\) A willful failure to perform in accordance with the terms of one
or more public agreements or transactions;

\(2\) A history of failure to perform or of unsatisfactory performance
of one or more public agreements or transactions; or

\(3\) A willful violation of a statutory or regulatory provision or
requirement applicable to a public agreement or transaction;

\(c\) Any of the following causes:

\(1\) A nonprocurement debarment by any Federal agency taken before
October 1, 1988, or a procurement debarment by any Federal agency taken
pursuant to 48 CFR part 9, subpart 9.4, before August 25, 1995;

\(2\) Knowingly doing business with an ineligible person, except as
permitted under §180.135;

\(3\) Failure to pay a single substantial debt, or a number of
outstanding debts (including disallowed costs and overpayments, but not
including sums owed the Federal Government under the Internal Revenue
Code) owed to any Federal agency or instrumentality, provided the debt
is uncontested by the debtor or, if contested, provided that the
debtor\'s legal and administrative remedies have been exhausted;

\(4\) Violation of a material provision of a voluntary exclusion
agreement entered into under §180.640 or of any settlement of a
debarment or suspension action; or

\(5\) Violation of the provisions of the Drug-Free Workplace Act of 1988
(41 U.S.C. 701); or

\(d\) Any other cause of so serious or compelling a nature that it
affects your present responsibility.

**§180.805 What notice does the debarring official give me if I am
proposed for debarment?**

After consideration of the causes in §180.800, if the debarring official
proposes to debar you, the official sends you a Notice of Proposed
Debarment, pursuant to §180.615, advising you‑‑

\(a\) That the debarring official is considering debarring you;

\(b\) Of the reasons for proposing to debar you in terms sufficient to
put you on notice of the conduct or transactions upon which the proposed
debarment is based;

\(c\) Of the cause(s) under §180.800 upon which the debarring official
relied for proposing your debarment;

\(d\) Of the applicable provisions of this subpart, Subpart F of this
part, and any other agency procedures governing debarment; and

\(e\) Of the governmentwide effect of a debarment from procurement and
nonprocurement programs and activities.

**§180.810 When does a debarment take effect?**

Unlike suspension, a debarment is not effective until the debarring
official issues a decision. The debarring official does not issue a
decision until the respondent has had an opportunity to contest the
proposed debarment.

**§180.815 How may I contest a proposed debarment?**

If you as a respondent wish to contest a proposed debarment, you or your
representative must provide the debarring official with information in
opposition to the proposed debarment. You may do this orally or in
writing, but any information provided orally that you consider important
must also be submitted in writing for the official record.

**§180.820 How much time do I have to contest a proposed debarment?**

\(a\) As a respondent you or your representative must either send, or
make arrangements to appear and present, the information and argument to
the debarring official within 30 days after you receive the Notice of
Proposed Debarment.

\(b\) The Federal agency taking the action considers the Notice of
Proposed Debarment to be received by you‑‑

\(1\) When delivered, if the agency mails the notice to the last known
street address, or five days after the agency sends it if the letter is
undeliverable;

\(2\) When sent, if the agency sends the notice by facsimile or five
days after the agency sends it if the facsimile is undeliverable; or

\(3\) When delivered, if the agency sends the notice by e-mail or five
days after the agency sends it if the e-mail is undeliverable.

**§180.825 What information must I provide to the debarring official if
I contest the proposed debarment?**

\(a\) In addition to any information and argument in opposition, as a
respondent your submission to the debarring official must identify‑‑

\(1\) Specific facts that contradict the statements contained in the
Notice of Proposed Debarment. Include any information about any of the
factors listed in §180.860. A general denial is insufficient to raise a
genuine dispute over facts material to the debarment;

\(2\) All existing, proposed, or prior exclusions under regulations
implementing Executive Order 12549 and all similar actions taken by
Federal, State, or local agencies, including administrative agreements
that affect only those agencies;

\(3\) All criminal and civil proceedings not included in the Notice of
Proposed Debarment that grew out of facts relevant to the cause(s)
stated in the notice; and

\(4\) All of your affiliates.

\(b\) If you fail to disclose this information, or provide false
information, the Federal agency taking the action may seek further
criminal, civil or administrative action against you, as appropriate.

**§180.830 Under what conditions do I get an additional opportunity to
challenge the facts on which the proposed debarment is based?**

\(a\) You as a respondent will not have an additional opportunity to
challenge the facts if the debarring official determines that‑‑

\(1\) Your debarment is based upon a conviction or civil judgment;

\(2\) Your presentation in opposition contains only general denials to
information contained in the Notice of Proposed Debarment; or

\(3\) The issues raised in your presentation in opposition to the
proposed debarment are not factual in nature, or are not material to the
debarring official\'s decision whether to debar.

\(b\) You will have an additional opportunity to challenge the facts if
the debarring official determines that‑‑

\(1\) The conditions in paragraph (a) of this section do not exist; and

\(2\) Your presentation in opposition raises a genuine dispute over
facts material to the proposed debarment.

\(c\) If you have an opportunity to challenge disputed material facts
under this section, the debarring official or designee must conduct
additional proceedings to resolve those facts.

**§180.835 Are debarment proceedings formal?**

\(a\) Debarment proceedings are conducted in a fair and informal manner.
The debarring official may use flexible procedures to allow you as a
respondent to present matters in opposition. In so doing, the debarring
official is not required to follow formal rules of evidence or procedure
in creating an official record upon which the official will base the
decision whether to debar.

\(b\) You or your representative must submit any documentary evidence
you want the debarring official to consider.

**§180.840 How is fact-finding conducted?**

\(a\) If fact-finding is conducted‑‑

\(1\) You may present witnesses and other evidence, and confront any
witness presented; and

\(2\) The fact-finder must prepare written findings of fact for the
record.

\(b\) A transcribed record of fact-finding proceedings must be made,
unless you as a respondent and the Federal agency agree to waive it in
advance. If you want a copy of the transcribed record, you may purchase
it.

**§180.845 What does the debarring official consider in deciding whether
to debar me?**

\(a\) The debarring official may debar you for any of the causes in
§180.800. However, the official need not debar you even if a cause for
debarment exists. The official may consider the seriousness of your acts
or omissions and the mitigating or aggravating factors set forth at
§180.860.

\(b\) The debarring official bases the decision on all information
contained in the official record. The record includes‑‑

\(1\) All information in support of the debarring official\'s proposed
debarment;

\(2\) Any further information and argument presented in support of, or
in opposition to, the proposed debarment; and

\(3\) Any transcribed record of fact-finding proceedings.

\(c\) The debarring official may refer disputed material facts to
another official for findings of fact. The debarring official may reject
any resultant findings, in whole or in part, only after specifically
determining them to be arbitrary, capricious, or clearly erroneous.

**§180.850 What is the standard of proof in a debarment action?**

\(a\) In any debarment action, the Federal agency must establish the
cause for debarment by a preponderance of the evidence.

\(b\) If the proposed debarment is based upon a conviction or civil
judgment, the standard of proof is met.

**§180.855 Who has the burden of proof in a debarment action?**

\(a\) The Federal agency has the burden to prove that a cause for
debarment exists.

\(b\) Once a cause for debarment is established, you as a respondent
have the burden of demonstrating to the satisfaction of the debarring
official that you are presently responsible and that debarment is not
necessary.

**§180.860 What factors may influence the debarring official\'s
decision?**

This section lists the mitigating and aggravating factors that the
debarring official may consider in determining whether to debar you and
the length of your debarment period. The debarring official may consider
other factors if appropriate in light of the circumstances of a
particular case. The existence or nonexistence of any factor, such as
one of those set forth in this section, is not necessarily determinative
of your present responsibility. In making a debarment decision, the
debarring official may consider the following factors:

\(a\) The actual or potential harm or impact that results or may result
from the wrongdoing.

\(b\) The frequency of incidents and/or duration of the wrongdoing.

\(c\) Whether there is a pattern or prior history of wrongdoing. For
example, if you have been found by another Federal agency or a State
agency to have engaged in wrongdoing similar to that found in the
debarment action, the existence of this fact may be used by the
debarring official in determining that you have a pattern or prior
history of wrongdoing.

\(d\) Whether you are or have been excluded or disqualified by an agency
of the Federal Government or have not been allowed to participate in
State or local contracts or assistance agreements on a basis of conduct
similar to one or more of the causes for debarment specified in this
part.

\(e\) Whether you have entered into an administrative agreement with a
Federal agency or a State or local government that is not governmentwide
but is based on conduct similar to one or more of the causes for
debarment specified in this part.

\(f\) Whether and to what extent you planned, initiated, or carried out
the wrongdoing.

\(g\) Whether you have accepted responsibility for the wrongdoing and
recognize the seriousness of the misconduct that led to the cause for
debarment.

\(h\) Whether you have paid or agreed to pay all criminal, civil and
administrative liabilities for the improper activity, including any
investigative or administrative costs incurred by the government, and
have made or agreed to make full restitution.

\(i\) Whether you have cooperated fully with the government agencies
during the investigation and any court or administrative action. In
determining the extent of cooperation, the debarring official may
consider when the cooperation began and whether you disclosed all
pertinent information known to you.

\(j\) Whether the wrongdoing was pervasive within your organization.

\(k\) The kind of positions held by the individuals involved in the
wrongdoing.

\(l\) Whether your organization took appropriate corrective action or
remedial measures, such as establishing ethics training and implementing
programs to prevent recurrence.

\(m\) Whether your principals tolerated the offense.

\(n\) Whether you brought the activity cited as a basis for the
debarment to the attention of the appropriate government agency in a
timely manner.

\(o\) Whether you have fully investigated the circumstances surrounding
the cause for debarment and, if so, made the result of the investigation
available to the debarring official.

\(p\) Whether you had effective standards of conduct and internal
control systems in place at the time the questioned conduct occurred.

\(q\) Whether you have taken appropriate disciplinary action against the
individuals responsible for the activity which constitutes the cause for
debarment.

\(r\) Whether you have had adequate time to eliminate the circumstances
within your organization that led to the cause for the debarment.

\(s\) Other factors that are appropriate to the circumstances of a
particular case.

**§180.865 How long may my debarment last?**

\(a\) If the debarring official decides to debar you, your period of
debarment will be based on the seriousness of the cause(s) upon which
your debarment is based. Generally, debarment should not exceed three
years. However, if circumstances warrant, the debarring official may
impose a longer period of debarment.

\(b\) In determining the period of debarment, the debarring official may
consider the factors in §180.860. If a suspension has preceded your
debarment, the debarring official must consider the time you were
suspended.

\(c\) If the debarment is for a violation of the provisions of the
Drug-Free Workplace Act of 1988, your period of debarment may not exceed
five years.

**§180.870 When do I know if the debarring official debars me?**

\(a\) The debarring official must make a written decision whether to
debar within 45 days of closing the official record. The official record
closes upon the debarring official's receipt of final submissions,
information and findings of fact, if any. The debarring official may
extend that period for good cause.

\(b\) The debarring official sends you written notice, pursuant to
§180.615 that the official decided, either‑‑

\(1\) Not to debar you; or

\(2\) To debar you. In this event, the notice:

\(i\) Refers to the Notice of Proposed Debarment;

\(ii\) Specifies the reasons for your debarment;

\(iii\) States the period of your debarment, including the effective
dates; and

\(iv\) Advises you that your debarment is effective for covered
transactions and contracts that are subject to the Federal Acquisition
Regulation (48 CFR chapter 1), throughout the executive branch of the
Federal Government unless an agency head or an authorized designee
grants an exception.

**§180.875 May I ask the debarring official to reconsider a decision to
debar me?**

Yes, as a debarred person you may ask the debarring official to
reconsider the debarment decision or to reduce the time period or scope
of the debarment. However, you must put your request in writing and
support it with documentation.

**§180.880 What factors may influence the debarring official during
reconsideration?**

The debarring official may reduce or terminate your debarment based on‑‑

\(a\) Newly discovered material evidence;

\(b\) A reversal of the conviction or civil judgment upon which your
debarment was based;

\(c\) A bona fide change in ownership or management;

\(d\) Elimination of other causes for which the debarment was imposed;
or

\(e\) Other reasons the debarring official finds appropriate.

**§180.885 May the debarring official extend a debarment?**

\(a\) Yes, the debarring official may extend a debarment for an
additional period, if that official determines that an extension is
necessary to protect the public interest.

\(b\) However, the debarring official may not extend a debarment solely
on the basis of the facts and circumstances upon which the initial
debarment action was based.

\(c\) If the debarring official decides that a debarment for an
additional period is necessary, the debarring official must follow the
applicable procedures in this subpart, and Subpart F of this part, to
extend the debarment.

**Subpart I-- Definitions**

**§180.900 Adequate evidence.**

[Adequate evidence]{.underline} means information sufficient to support
the reasonable belief that a particular act or omission has occurred.

**§180.905 Affiliate.**

Persons are [affiliates]{.underline} of each other if, directly or
indirectly, either one controls or has the power to control the other or
a third person controls or has the power to control both. The ways a
Federal agency may determine control include, but are not limited to‑‑

\(a\) Interlocking management or ownership;

\(b\) Identity of interests among family members;

\(c\) Shared facilities and equipment;

\(d\) Common use of employees; or

\(e\) A business entity which has been organized following the exclusion
of a person which has the same or similar management, ownership, or
principal employees as the excluded person.

**§180.910 Agent or representative.**

[Agent or representative]{.underline} means any person who acts on
behalf of, or who is authorized to commit a participant in a covered
transaction.

**§180.915 Civil judgment.**

[Civil judgment]{.underline} means the disposition of a civil action by
any court of competent jurisdiction, whether by verdict, decision,
settlement, stipulation, other disposition which creates a civil
liability for the complained of wrongful acts, or a final determination
of liability under the Program Fraud Civil Remedies Act of 1988 (31
U.S.C. 3801-3812).

**§180.920 Conviction**.

[Conviction]{.underline} means‑‑

\(a\) A judgment or any other determination of guilt of a criminal
offense by any court of competent jurisdiction, whether entered upon a
verdict or plea, including a plea of nolo contendere; or

\(b\) Any other resolution that is the functional equivalent of a
judgment, including probation before judgment and deferred prosecution.
A disposition without the participation of the court is the functional
equivalent of a judgment only if it includes an admission of guilt.

**§180.925 Debarment.**

[Debarment]{.underline} means an action taken by a debarring official
under Subpart H of this part to exclude a person from participating in
covered transactions and transactions covered under the Federal
Acquisition Regulation (48 CFR chapter 1). A person so excluded is
debarred.

**§180.930 Debarring official.**

[Debarring official]{.underline} means an agency official who is
authorized to impose debarment. A debarring official is either‑‑

\(a\) The agency head; or

\(b\) An official designated by the agency head.

**§180.935 Disqualified**.

[Disqualified]{.underline} means that a person is prohibited from
participating in specified Federal procurement or nonprocurement
transactions as required under a statute, Executive order (other than
Executive Orders 12549 and 12689) or other authority. Examples of
disqualifications include persons prohibited under‑‑

\(a\) The Davis-Bacon Act (40 U.S.C. 276(a));

\(b\) The equal employment opportunity acts and Executive orders; or

\(c\) The Clean Air Act (42 U.S.C. 7606), Clean Water Act (33 U.S.C.
1368) and Executive Order 11738 (3 CFR, 1973 Comp., p. 799).

**§180.940 Excluded or exclusion.**

[Excluded or exclusion]{.underline} means‑‑

\(a\) That a person or commodity is 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;
voluntarily excluded; or

\(b\) The act of excluding a person.

**§180.945 Excluded Parties List System (EPLS).**

[Excluded Parties List System (EPLS)]{.underline} means the list
maintained and disseminated by the General Services Administration (GSA)
containing the names and other information about persons who are
ineligible.

**§180.950 Federal agency.**

[Federal agency]{.underline} means any United States executive
department, military department, defense agency or any other agency of
the executive branch. Other agencies of the Federal government are not
considered "agencies" for the purposes of this part unless they issue
regulations adopting the governmentwide Debarment and Suspension system
under Executive Orders 12549 and 12689.

**§180.955 Indictment.**

[Indictment]{.underline} means an indictment for a criminal offense. A
presentment, information, or other filing by a competent authority
charging a criminal offense shall be given the same effect as an
indictment.

**§180.960 Ineligible or ineligibility.**

[Ineligible or ineligibility]{.underline} means that a person or
commodity is prohibited from covered transactions because of an
exclusion or disqualification.

**§180.965 Legal proceedings.**

[Legal proceedings]{.underline} means any criminal proceeding or any
civil judicial proceeding, including a proceeding under the Program
Fraud Civil Remedies Act (31 U.S.C. 3801-3812), to which the Federal
Government or a State or local government or quasi-governmental
authority is a party. The term also includes appeals from those
proceedings.

**§180.970 Nonprocurement transaction.**

\(a\) [Nonprocurement transaction]{.underline} means any transaction,
regardless of type (except procurement contracts), including, but not
limited to the following:

\(1\) Grants.

\(2\) Cooperative agreements.

\(3\) Scholarships.

\(4\) Fellowships.

\(5\) Contracts of assistance.

\(6\) Loans.

\(7\) Loan guarantees.

\(8\) Subsidies.

\(9\) Insurances.

\(10\) Payments for specified uses.

\(11\) Donation agreements.

\(b\) A nonprocurement transaction at any tier does not require the
transfer of Federal funds.

**§180.975 Notice.**

[Notice]{.underline} means a written communication served in person,
sent by certified mail or its equivalent, or sent electronically by
e-mail or facsimile. (See §180. 615.)

**§180.980 Participant.**

[Participant]{.underline} means any person who submits a proposal for or
who enters into a covered transaction, including an agent or
representative of a participant.

**§180.985 Person.**

[Person]{.underline} means any individual, corporation, partnership,
association, unit of government, or legal entity, however organized.

**§180.990 Preponderance of the evidence.**

[Preponderance of the evidence]{.underline} means proof by information
that, compared with information opposing it, leads to the conclusion
that the fact at issue is more probably true than not.

**§180.995 Principal.**

[Principal]{.underline} means‑‑

\(a\) An officer, director, owner, partner, principal investigator, or
other person within a participant with management or supervisory
responsibilities related to a covered transaction; or

\(b\) A consultant or other person, whether or not employed by the
participant or paid with Federal funds, who‑‑

\(1\) Is in a position to handle Federal funds;

\(2\) Is in a position to influence or control the use of those funds;
or,

\(3\) Occupies a technical or professional position capable of
substantially influencing the development or outcome of an activity
required to perform the covered transaction.

**§180.1000 Respondent.**

[Respondent]{.underline} means a person against whom an agency has
initiated a debarment or suspension action.

**§180.1005 State.**

\(a\) [State]{.underline} means‑‑

\(1\) Any of the states of the United States;

\(2\) The District of Columbia;

\(3\) The Commonwealth of Puerto Rico;

\(4\) Any territory or possession of the United States; or

\(5\) Any agency or instrumentality of a state.

\(b\) For purposes of this part, [State]{.underline} does not include
institutions of higher education, hospitals, or units of local
government.

**§180.1010 Suspending official.**

\(a\) [Suspending official]{.underline} means an agency official who is
authorized to impose suspension. The suspending official is either:

\(1\) The agency head; or

\(2\) An official designated by the agency head.

**§180.1015 Suspension.**

[Suspension]{.underline} is an action taken by a suspending official
under subpart G of this part that immediately prohibits a person from
participating in covered transactions and transactions covered under the
Federal Acquisition Regulation (48 CFR chapter 1) for a temporary
period, pending completion of an agency investigation and any judicial
or administrative proceedings that may ensue. A person so excluded is
suspended.

**§180.1020 Voluntary exclusion or voluntarily excluded.**

\(a\) [Voluntary exclusion]{.underline} means a person\'s agreement to
be excluded under the terms of a settlement between the person and one
or more agencies. Voluntary exclusion must have governmentwide effect.

\(b\) [Voluntarily excluded]{.underline} means the status of a person
who has agreed to a voluntary exclusion.

**Appendix to Part 180\_\_\_-- Covered Transactions**

**COVERED TRANSACTIONS**

**PART 215-\[AMENDED\]**

2\. The authority citation for part 215 continues to read as follows:

> **Authority**: 31 U.S.C. 503; 31 U.S.C. 1111; 41 U.S.C. 405;
> Reorganization Plan No. 2 of 1970; E.O. 11541, 35 FR 10737, 3 CFR,
> 1966--1970, p. 939.

3\. Section 215.13 is revised to read as follows:

**§ 215.13 Debarment and suspension.**

Federal awarding agencies and recipients shall comply with Federal
agency regulations implementing E.O.s 12549 and 12689, "Debarment and
Suspension." Under those regulations, certain parties who are debarred,
suspended or otherwise excluded may not be participants or principals in
Federal assistance awards and subawards, and in certain contracts under
those awards and subawards.

4\. Paragraph 8 of Appendix A to part 215 is revised to read as follows:

**Appendix A to Part 215 -- Contract Provisions**

**\* \* \* \* \***

8\. Debarment and Suspension (E.O.s 12549 and 12689) - A contract award
with an amount expected to equal or exceed \$25,000 and certain other
contract awards (see 2 CFR 180.220) shall not be made to parties listed
on the government‑wide Excluded Parties List System, in accordance with
the OMB guidelines at 2 CFR part 180 that implement E.O.s 12549 (3 CFR,
1986 Comp., p. 189) and 12689 (3 CFR, 1989 Comp., p. 235), "Debarment
and Suspension." The Excluded Parties List System contains the names of
parties debarred, suspended, or otherwise excluded by agencies, as well
as parties declared ineligible under statutory or regulatory authority
other than E.O. 12549.