Subpart 409.4 - Debarment, Suspension and

Ineligibility

Parent topic: PART 409 - CONTRACTOR QUALIFICATIONS

409.403 Definitions.

Debarring official. Pursuant to the Secretary's delegations of authority in 7 CFR 2.24, the Senior

Procurement Executive (SPE) is designated as the debarring official (Department Debarring Officer)

with the following exceptions:

(a) For commodity contracts awarded on behalf of the Commodity Credit Corporation (CCC), the

Executive Vice President, CCC, or his designee is designated as the debarring official pursuant to 7

CFR part 1407.

(b) For contracts awarded under the School Lunch and Surplus Removal Programs (42 U.S.C. 1755

and 7 U.S.C. 612c), the Department Debarring Officer has delegated debarring authority to the

Agricultural Marketing Service (AMS).

409.404 List of parties excluded from Federal procurement

and nonprocurement programs.

The Department Debarring Officer is USDA's single point of contact with GSA for debarment and

suspension actions taken under this subpart. The debarring official for AMS shall notify the

Department Debarring Officer of each debarment and suspension action by promptly submitting a

copy of the debarment or suspension notice and any later changes to the debarment or suspension

status. The Department Debarring Officer will forward a copy of each notice to GSA for inclusion in

the Government-wide list.

409.405 Effect of listing.

Compelling reasons are considered to be present where failure to contract with the debarred or

suspended contractor would seriously harm the agency's programs and prevent accomplishment of

mission requirements. The SPE is authorized to make the determinations under FAR 9.405. Requests

for such determinations shall be submitted through the head of the contracting activity (HCA) to the

SPE.

409.405-1 Continuation of current contracts.

The HCA is authorized to make the determinations under FAR 9.405-1.
409.405-2 Restrictions on subcontracting.

The HCA is authorized to approve subcontracts with debarred or suspended subcontractors under

FAR 9.405-2.

409.406 Debarment.

409.406-3 Procedures.

(a) Investigation and referral. When a contracting officer becomes aware of possible irregularities or

any information which may be sufficient cause for debarment, the case shall be immediately referred

through the HCA to the debarring official. The case must be accompanied by a complete statement

of the facts (including a copy of any criminal indictments, if applicable) along with a

recommendation for action. Where the statement of facts indicates the irregularities to be possible

criminal offenses, or for any other reason further investigation is considered necessary, the matter

shall be referred to the HCA who should consult with the Office of Inspector General to determine if

further investigation is required prior to referring to the debarring official.

(b) Decision-making process. If, after reviewing the recommendations and consulting with the Office

of Inspector General and Office of the General Counsel, as appropriate, the debarring official

determines debarment is justified, the debarring official shall initiate the proposed debarment in

accordance with FAR 9.406-3(c) and notify the HCA of the action taken.

(c) Fact-finding proceeding. For actions listed under FAR 9.406-3(b)(2), the contractor shall be given

the opportunity to appear at an informal hearing. The hearing should be held at a location and time

that is convenient to the parties concerned, if at all possible. The contractor and any specifically

named affiliates may be represented by counsel or any duly authorized representative. Witnesses

may be called by either party. The proceedings shall be conducted expeditiously and in such a

manner that each party will have an opportunity to present all information considered pertinent to

the proposed debarment. The contractor shall be provided a copy of a transcript of the proceedings

under the conditions established in FAR 9.406-3(b)(2)(ii).

409.407 Suspension.

409.407-3 Procedures.

(a) Investigation and referral. When a contracting officer becomes aware of possible irregularities or

any information which may be sufficient cause for suspension, the case shall be immediately

referred through the HCA to the debarring official. The case must be accompanied by a complete

statement of the facts along with a recommendation for action. Where the statement of facts

indicates the irregularities to be possible criminal offenses, or for any other reason further

investigation is considered necessary, the matter shall be referred to the HCA who should consult

with the Office of Inspector General to determine if further investigation is required prior to

referring it to the debarring official.
(b) Decision-making process. If, after reviewing the recommendations and consulting with the Office

of Inspector General and Office of the General Counsel, as appropriate, the debarring official

determines suspension is justified, the debarring official shall initiate the proposed suspension in

accordance with FAR 9.407-3(c) and notify the HCA of the action taken.

(c) Fact-finding proceedings. For actions listed under FAR 9.407-3(b)(2), the contractor shall be

given the opportunity to appear at an informal hearing, similar in nature to the hearing for

debarments as discussed in 409.406-3(c).