Part 509 - Contractor Qualifications

Subpart 509.1 - Responsible Prospective Contractors

509.105 Procedures.

509.105-1 Obtaining information.

509.105-2 Determinations and documentation.

Subpart 509.3 - First Article Testing and Approval

509.302 General.

509.306 Solicitation requirements.

Subpart 509.4 - Debarment, Suspension, and Ineligibility

509.401 Applicability.

509.403 Definitions.

509.405 Effect of listing.

509.405-1 Continuation of current contracts.

509.405-2 Restrictions on subcontracting.

509.406 Debarment.

509.406-1 General.

509.406-3 Procedures.

509.407 Suspension.

509.407-1 General.

509.407-3 Procedures.

Subpart 509.5 - Organizational and Consultant Conflicts of Interest

509.503 Waiver.

Parent topic: General Services Administration Acquisition Manual

Subpart 509.1 - Responsible Prospective Contractors

509.105 Procedures.
509.105-1 Obtaining information.

FAR 9.105-1 lists a number of sources of information that a contracting officer may utilize before

making a determination of responsibility. The contracting officer may request information directly

from a prospective contractor using GSA Form 527, Contractor's Qualifications and Financial

Information, but only after exhausting other available sources of information.

509.105-2 Determinations and documentation.

(a) The contracting officer shall provide written notification to a prospective contractor determined

not responsible. Include the basis for the determination. Notification provides the prospective

contractor with the opportunity to correct any problem for future solicitations.

(b) Due to the potential for de facto debarment, the contracting officer shall avoid making repeated

determinations of nonresponsibility based on the same past performance information.

(c) To provide for timely consideration of the need to institute action to debar a contractor, the

contracting officer shall submit a copy of each nonresponsibility determination, other than those

based on capacity or financial capability, to the Suspension and Debarment Official in the Office of

Acquisition Policy.

Subpart 509.3 - First Article Testing and Approval

509.302 General.

(a) If first article testing and approval is required, GSA usually requires that the contractor perform

testing and that the first article:

(1) Be produced at the same facility where production quantities will be produced; and

(2) Serve as the manufacturing standard.

(b) Coordinate the need for first article testing and approval with the Contract Operations

Management Division (FXCC), which will provide the information to complete the clauses at FAR

52.209-3 or 52.209-4.

509.306 Solicitation requirements.

The clauses at FAR 52.209-3 and 52.209-4 do not cover all the solicitation requirements described in

FAR 9.306. If a solicitation contains a testing and approval requirement, the contracting officer must

address the requirements in FAR 9.306(d) and (f) through (j) in the solicitation’s Section H, special

contract requirements.
Subpart 509.4 - Debarment, Suspension, and Ineligibility

509.401 Applicability.

This subpart applies to all the following:

(a) Acquisitions of personal property, nonpersonal services, construction, and space in buildings.

(b) Acquisition of transportation services (Federal Management Regulation (FMR) Parts 102-117

and 102-118 (41 CFR parts 102-117 and 102-118)).

(c) Contracts for disposal of personal property (FMR Parts 102-36 through 102-38 (41 CFR parts

102-36 through 102-38)).

(d) Covered transactions as defined by 41 CFR 105-68.

509.403 Definitions.

“Fact-finding official,” means the Suspension and Debarment Official or a designee.

“Notice” means a letter sent by certified mail, return receipt requested, to the last known address of

a party, its counsel, or agent for service of process. In the case of a business, such notice may be

sent to any partner, principal officer, director, owner or co-owner, or joint venturer. If no return

receipt is received within 10 calendar days of mailing, receipt will then be presumed.

509.405 Effect of listing.

509.405-1 Continuation of current contracts.

(a) When a contractor appears as a current exclusion in the System for Award Management (SAM),

consider terminating a contract under any of the following circumstances:

(1) Any circumstances giving rise to the debarment or suspension also constitute a default in the

contractor’s performance of the contract.

(2) The contractor presents a significant risk to the Government in completing the contract.

(3) The conduct that provides the cause of the suspension, proposed debarment, or debarment

involved a GSA contract.

(b) Before terminating a contract when a contractor appears as a current exclusion in the SAM,

consider the following factors:

(1) Seriousness of the cause for debarment or suspension.

(2) Extent of contract performance.

(3) Potential costs of termination and reprocurement.
(4) Need for or urgency of the requirement, contract coverage, and the impact of delay for

reprocurement.

(5) Availability of other safeguards to protect the Government’s interest until completion of the

contract.

(6) Availability of alternate competitive sources to meet the requirement (e.g., other multiple award

contracts, readily available commercial products and commercial services).

(c) The responsibilities of the agency head under FAR 9.405-1 are delegated to the Senior

Procurement Executive.

509.405-2 Restrictions on subcontracting.

The responsibilities of the agency head under FAR 9.405-2(a) are delegated to the Senior

Procurement Executive.

509.406 Debarment.

509.406-1 General.

The Suspension and Debarment Official is the designee under FAR 9.406-1(c).

509.406-3 Procedures.

(a) Investigation and referral.

(1) Refer to the Suspension and Debarment Official matters involving serious contract improprieties

or performance deficiencies. Performance deficiencies that continue over a period of time or apply

to more than one contract may warrant debarment consideration.

(2) Refer possible criminal or fraudulent activities to the Office of the Inspector General (OIG). See 5

CFR 6701.107, Reporting Waste, Fraud, Abuse, and Corruption. If, after investigation, the OIG

believes a cause for debarment exists, it will refer the matter to the Suspension and Debarment

Official for consideration of debarment action.

(b) Reports. Include in referrals to the Suspension and Debarment Official a report that contains at

least the following:

(1) The recommendation and supporting rationale.

(2) A list of parties to be considered for possible debarment, including the contractor, principals,

and affiliates. Include last known home and business addresses, zip codes, and unique entity

identifiers.

(3) A statement of facts.
(4) Copies of documentary evidence and a list of witnesses. Include addresses and telephone

numbers. Determine their availability to appear at a fact-finding proceeding and identify the subject

matter of their testimony.

(5) GSA’s acquisition history with the contractor. Include recent experience, copies of the pertinent

contracts, and an explanation of impact debarment would have on GSA programs. OIG referrals do

not require this explanation; the Suspension and Debarment Official will obtain the information

directly from the contracting activity(s).

(6) A list of any known active or potential criminal investigations, criminal or civil proceedings, or

administrative claims before the Board of Contract Appeals.

(c) Review. The Suspension and Debarment Official will review the report, and after coordinating

with assigned legal counsel—

(1) Initiate debarment action;

(2) Decline debarment action.;

(3) Request additional information; or

(4) Refer the matter to the OIG for further investigation and development of a case file.

(d) Decision making process.

(1) The Suspension and Debarment Official will provide:

(i) Notice of declinations, proposed debarments, and decisions to the referring activity.

(ii) Notice of proposed debarment to each party being considered for debarment.

(iii) Decision notices to each party after considering information in the administrative record and

information and argument submitted by the affected party or parties.

(2) A party proposed for debarment:

(i) Has 30 calendar days after receipt of the notice to respond to the Suspension and Debarment

Official or the debarment becomes final.

(ii) May request and receive a copy of the administrative record that was the basis for the proposed

debarment. If information is withheld, the party will be notified and provided the reason.

(iii) May request the opportunity to present information and argument in person to the Suspension

and Debarment Official. The Suspension and Debarment Official will schedule an oral presentation

within 20calendar days of receipt of the request, unless a longer period of time is requested by the

party. An oral presentation is informal and a transcript usually is not made. The party may

supplement the oral presentation with written information and arguments.

(iv) May identify to the Suspension and Debarment Official material facts in dispute and the bases.

For an action other than one based on a conviction or civil judgment, a party may request review

and a written finding by a fact-finding official.

(3) Following a review of the record and, if needed, a presentation by the contractor in opposition to
the proposed action, the Suspension and Debarment Official will determine whether there is a

genuine dispute of material fact. If so, the Suspension and Debarment Official will initiate the factfinding process. The fact-finding official will:

(i) Establish a date for a fact-finding proceeding, normally to be held within 45 days of the

determination of who will function as the fact-finding official.

(ii) Grant extensions for good cause.

(iii) Provide notice of the scheduled hearing.

(iv) Provide the parties with a schedule for exchange of documents and witness lists.

(v) Develop an official transcript of the fact-finding proceeding.

(vi) Provide the Government’s representative and the contractor with an opportunity to present

evidence relevant to the facts at issue. The contractor may appear in person or through a

representative.

(vii) Conduct hearings under rules consistent with FAR 9.406-3 pertaining to fact finding. Neither

the Federal Rules of Evidence nor the Federal Rules of Civil Procedure govern fact finding. Hearsay

evidence may be presented and will be given appropriate weight by the fact-finding official.

(viii) Provide for witness testimony. Witnesses may testify in person. Witnesses are subject to cross

examination.

(ix) Prepare written findings of fact based on a preponderance of the evidence and submit them to

both the Suspension and Debarment Official and the contractor within 20 calendar days following

the conclusion of the fact-finding proceeding.

509.407 Suspension.

509.407-1 General.

The Suspension and Debarment Official is the designee under FAR 9.407-1(d).

509.407-3 Procedures.

(a) General. The procedures in 509.406-3 apply to suspension actions except as noted in paragraph

(b) of this section.

(b) Fact-finding.

(1) Fact-finding will not be conducted in an action:

(i) Based on an indictment.

(ii) When the Suspension and Debarment Official finds no genuine dispute of material facts.
(2) If the action is not based on an indictment, the Suspension and Debarment Official must

coordinate with the Department of Justice or state prosecutorial authority through OIG. Based on

the advice received, the Suspension and Debarment Official will determine if fact-finding would

impair substantial interests of the Federal or state Government. In an action not based on an

indictment, a suspended party may:

(i) Identify to the Suspension and Debarment Official material facts in dispute and the bases.

(ii) Request review and a written finding by a fact-finding official to resolve genuine disputes of

material fact. For procedures involving a genuine dispute of material fact, see 509.406-3(d)(3).

Subpart 509.5 - Organizational and Consultant Conflicts of

Interest

509.503 Waiver.

The Senior Procurement Executive is the designee under FAR 9.503.