Defense Procurement Fraud Debarment Clearinghouse.


MENU TITLE: Defense Procurement Fact Sheet
Series: BJA
Published: November 1995
3 pages
5,651 bytes

Bureau of Justice Assistance Fact Sheet

Defense Procurement Fraud Debarment Clearinghouse

The Defense Procurement Fraud Debarment
Clearinghouse, operated by the Bureau of Justice
Assistance (BJA) of the Office of Justice Programs,
U.S. Department of Justice, was established by
Section 815, Subsection 10 of the National Defense
Authorization Act for fiscal year (FY) 1993 (Public
Law 102-484, United States Code, Section 2408(c)).
This provision required the U.S. Attorney General
to establish a single point of contact for
contractors or subcontractors of the U.S.
Department of Defense (DOD) to promptly confirm
whether potential employees have been convicted for
defense contract-related fraud or other felony. The
Clearinghouse serves as this point of contact.

DOD contractors and subcontractors must verify such
information because individuals who have been
convicted of fraud or any other felony arising out
of a contract with DOD are prohibited from
contracting with DOD under the National Defense
Authorization Act of 1989 (Public Law 100-456).
Section 831 of the Act, now codified at Title 10,
Section 2408(a) of the United States Code,
prohibits these individuals from engaging in the
following activities:

o Working in a management or supervisory capacity
on any defense contract, or any first-tier
subcontract of a defense contract.

o Serving on the board of directors of any defense
contractor, or any subcontractor awarded a contract
directly by a defense contractor.

o Serving as a consultant to any defense
contractor, or any subcontractor awarded a contract
directly by a defense contractor.

o Involvement in any other way, as determined under
regulations prescribed by the Secretary of Defense,
with a defense contract or first-tier subcontract
of a defense contract.

Provisions of the Law

In applying the provisions of the law, DOD
interprets its terms as follows: 

o Conviction of fraud or any other felony means any
conviction for fraud or felony in violation of
Federal or State criminal statutes, whether the
conviction was entered on a verdict or a plea
(including a plea of nolo contendere), for which a
sentence has been imposed. 

o Arising out of a contract with DOD means in
connection with attempting to obtain, obtaining, or
performing a contract or first-tier subcontract of
any agency, department, or component of DOD.

The provisions of the Act apply to individuals
convicted on or after September 30, 1988.
Prohibitions to contract with DOD apply for a
5-year period, beginning with the date of
conviction. The Secretary of Defense has the
authority to waive that restriction in the interest
of national security. If a defense contractor or
subcontractor knowingly employs a person under
prohibition or allows such a person to serve on the
board of directors, the contractor or subcontractor
is subject to a criminal penalty up to $500,000. 

How the Clearinghouse Obtains and Manages
Information

Defense-related fraud and felony cases are tried in
Federal court and prosecuted by a United States
Attorney. U.S. Attorneys' Offices submit copies of
sentencing orders for all defendants convicted of
defense-related fraud or felony in their districts
to the Defense Procurement Fraud Debarment
Clearinghouse on a quarterly basis. BJA maintains a
list of persons who have been disqualified from
contracting with DOD based on these sentencing
orders.

Clearinghouse Services

The Clearinghouse responds to inquires from Federal
agencies, DOD contractors, and first-tier
subcontractors as required for determination of
employment or contract eligibility purposes. The
Clearinghouse also forwards pertinent information
to the U.S. General Services Administration (GSA),
where the information is coded to identify the
specific category of Federal exclusion, which is
included in the GSA publication titled Lists of
Parties Excluded From Federal Procurement or
Nonprocurement Programs, more commonly known as the
Debarment List. The exclusion is categorized
according to the specific cause (i.e., the statute
violated and the treatment or exclusion).

Clearinghouse staff are accessible Monday through
Friday from 8 a.m. to 5 p.m. eastern standard time
at 1-202-616-3507. At other times, calls are
received by an answering machine. 

The Debarment List is available on written request
from GSA, Office of Acquisition Policy, 18th and F
Streets NW, Washington, D.C. 20405 or by telephone
at 1-202-501-4873. Electronic access to the
Debarment List is available free of charge 24 hours
a day, 7 days a week. Users must have an
asynchronous terminal compatible with the American
Standard for Communication and Information
Interchange (ASCII) and equipped with
communications software and a modem or coupler
capable of communicating at 300 to 1,200 baud.
While access to the system is free, users will
incur normal toll charges for the call. Electronic
access is available by calling 1-816-823-1775.

For Further Information

For additional information about the Defense
Procurement Fraud Debarment Clearinghouse, contact:

Defense Procurement Fraud Debarment Clearinghouse
Bureau of Justice Assistance
633 Indiana Avenue NW.
Washington, DC 20531
Tel: 1-202-616-3507

For additional information about the Debarment
List, contact:
Office of Acquisition Policy 
General Services Administration
441 Fourth Street NW., Room 4040
Washington, DC 20405 
Tel: 1-202-501-4873