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                            9.407-2 Causes for suspension.
        
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FAC Number: 2024-03 Effective Date: 02/23/2024
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Subpart9.09.19.29.39.49.59.69.7
Section9.4009.4019.4029.4039.4049.4059.4069.4079.4089.409
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9.407-2 Causes for suspension.9.407-2 Causes for suspension.       (a) The suspending official may suspend a contractor suspected, upon adequate evidence, of-                                                         (1) Commission of fraud or a criminal offense in connection with-                                                                           (i) Obtaining;                                                                              (ii) Attempting to obtain; or                                                                              (iii) Performing a public contract or subcontract.                                                                                                           (2) Violation of Federal or State antitrust statutes relating to the submission of offers;                                                            (3) Commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, violating Federal criminal tax laws, or receiving stolen property;                                                            (4) Violations of   41 U.S.C. chapter 81, Drug-Free Workplace, as indicated by-                                                                           (i) Failure to comply with the requirements of the clause at  52.223-6, Drug-Free Workplace; or                                                                              (ii) Such a number of contractor employees convicted of violations of criminal drug statutes occurring in the workplace as to indicate that the contractor has failed to make a good faith effort to provide a drug-free workplace (see  23.504);                                                                                                           (5) Intentionally affixing a label bearing a "Made in America" inscription (or any inscription having the same meaning) to a product sold in or shipped to the United States or its outlying areas, when the product was not made in the United States or its outlying areas (see Section 202 of the Defense Production Act (Public Law102-558));                                                            (6) Commission of an unfair trade practice as defined in  9.403 (see section 201 of the Defense Production Act (Pub.L.102-558));                                                            (7) Delinquent Federal taxes in an amount that exceeds $10;000. See the criteria at  9.406-2(b)(1)(v) for determination of when taxes are delinquent;                                                            (8) Knowing failure by a principal, until 3 years after final payment on any Government contract awarded to the contractor, to timely disclose to the Government, in connection with the award, performance, or closeout of the contract or a subcontract thereunder, credible evidence of-                                                                           (i) Violation of Federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations found in Title 18 of the United States Code;                                                                              (ii) Violation of the civil False Claims Act (31 U.S.C. 3729-3733); or                                                                              (iii) Significant overpayment(s) on the contract, other than overpayments resulting from contract financing payments as defined in  32.001; or                                                                                                           (9)                         Determination of a false certification under  52.209-13, Violation of Arms Control Treaties or Agreements-Certification.                                                            (10)                         Commission of any other offense indicating a lack of business integrity or business honesty that seriously and directly affects the present responsibility of a Government contractor or subcontractor.                                                                             (b) Indictment for any of the causes in paragraph (a) of this section constitutes adequate evidence for suspension.                                          (c) The suspending official may upon adequate evidence also suspend a contractor for any other cause of so serious or compelling a nature that it affects the present responsibility of a Government contractor or subcontractor.    **Parent topic:**  9.407 Suspension.
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