11. Are there other alternatives available in the 

suspension and debarment process?

There are other administrative alternatives available 

under this program. FEMA may issue a Letter of 

Concern, Request for Information, or enter into an 

Administrative Compliance Agreement.

• Letter of Concern (LOC) – A notice, sent by the 

FEMA Suspension and Debarment Official (SDO) to an 

entity, that a suspension or debarment action is being 

considered and affords the respondent the opportunity to

present information before a decision to suspend or debar 

is made. Sometimes followed by a request for 

information (RFI).

• RFI – Informal notice sent by FEMA’s SDO to the 

entity requesting additional information on a particular 

matter. This affords the entity an opportunity to present 

information to the SDO. A LOC usually precedes a RFI.

• Administrative Compliance Agreement – An 

agreement between the government and entity in lieu of 

suspension or debarment. Routinely, the agreement 

includes acceptance of responsibility for the conduct that 

gave rise to the agreement, a requirement for a code of 

ethics, a training program for all employees, an audit and 

internal control program, a compliance program, and a 

mechanism for reporting misconduct. Violation of the 

terms of an agreement provides an independent cause for 

debarment. See 2 CFR § 180.650.

12. When to report a suspected case of 

nonprocurement fraud, or nonprocurement 

integrity violations, or other misconduct?

Communication is a key step in fraud prevention. If you 

suspect fraud, waste, abuse, mismanagement of federal 

funds, or become aware of potentially suspicious activity 

FEMA encourages you to file a report immediately. 

13. How do you report a suspected case of 

nonprocurement fraud, or nonprocurement

integrity violation, or other misconduct for 

suspension and debarment consideration? 

You can: 

• Email: femas&d@fema.dhs.gov

• Call FEMA’s Office of Chief Security Officer (OCSO) 

tip line: 1-866-223-0814 or email: FEMA-OCSOTipline@fema.dhs.gov

• Online at the DHS Office of Inspector General (OIG) 

website: https://www.oig.dhs.gov/hotline or call the 

DHS OIG hotline at 1-800-323-8603

Notes:

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FEMA 

Suspension & 

Debarment

Frequently 

Asked Questions:

Nonprocurement Common Rule, 

2 Code of Federal Regulations Part 180

(2 CFR 180)
Frequently Asked Questions:

1.What is suspension and debarment? 

Suspension and debarment is an administrative tool used 

to protect the integrity of federal programs. It ensures 

federal programs conduct business only with responsible 

persons. See 2 CFR § 180.125. Suspension and 

debarment prevents companies and individuals from 

participating in government contracts, subcontracts, 

loans, grants and other assistance programs. See 2 CFR § 

180.130. 

2. What gives FEMA the authority?

FEMA’s nonprocurement suspension and debarment 

authority is established under the Department of 

Homeland Security’s (DHS) existing suspension and 

debarment program and is executed pursuant to the 

following:

• Executive Order 12549, Feb. 18, 1986 (51 FR 6370)

• 2 CFR § 180

• DHS Nonprocurement suspension and debarment rules, 

2 CFR § 3000

3. What is a nonprocurement transaction?

A nonprocurement transaction means any transaction 

regardless of type (except procurement contracts), 

including: grants, cooperative agreements, scholarships, 

fellowships, contracts of assistance, loans, loan 

guarantees, subsidies, insurance, payments for specified 

use, donation agreements, and any other nonprocurement 

transactions between a federal agency and a person. See 2

CFR § 180.200, 2 CFR § 180.210, and 2 CFR § 180.970.

4. Who can FEMA suspended or debar? 

Any individual, corporation, partnership, association, unit 

of government, or legal entity, however organized, may 

be suspended or debarred for commission of any offense 

demonstrating a lack of business integrity or business 

honesty that seriously and directly affects the 

respondent’s present responsibility. See 2 CFR § 

180.150.

5. How do suspensions and debarments differ?

• Suspensions may be based on indictments, 

information, or adequate evidence involving crimes, 

contract fraud, embezzlement, theft, forgery, bribery, 

poor performance, non-performance, or false statements. 

It is a temporary action which may last up to one year and 

is effective immediately. See 2 CFR § 180.605 and 2 

CFR § 180.705. 

• Debarments may be based on convictions, civil 

judgments, or fact based cases involving crimes, contract 

fraud, embezzlement, theft, forgery, bribery, poor 

performance, non-performance or false statements as well 

as other causes. The imposition of a debarment period is 

for a set period of time decided on a case by case basis. 

See 2 CFR § 180.605, 2 CFR § 180.800, and 2 CFR § 

180.845.

6. What is the effect if a company is suspended or 

debarred?

If a company is suspended or debarred, then it may not 

bid on or receive any federally funded contracts. It may 

also not receive any federal grants, cooperative 

agreements, scholarships, fellowships, contracts of 

assistance, loans, loan guarantees, subsidies, or insurance. 

See 2 CFR § 180.140, 2 CFR § 180.145, and 2 CFR § 

180.135.

7. What is the effect on a company if a principal 

is suspended or debarred?

If a principal of a company is suspended or debarred, then 

that company cannot receive federally funded contracts. 

See 2 CFR § 180.405. The company may also not 

receive federal grants, cooperative agreements, 

scholarships, fellowships, contracts of assistance, loans, 

loan guarantees, subsidies, or insurance. A principal is an 

officer, director, owner, partner, principal investigator, or 

other person with management or supervisory 

responsibility related to a covered transaction. See 2 CFR 

§ 180.995.

8. What is the effect on an individual if 

suspended or debarred? 

If an individual is suspended or debarred, then that 

individual may not receive federally funded contracts. 

The individual may also not receive federal grants, 

cooperative agreements, scholarships, fellowships, 

contracts of assistance, loans, loan guarantees, subsidies, 

or insurance. See 2 CFR § 180.140, and 2 CFR § 

180.145.

9. If a company or individual is suspended or 

debarred by FEMA does the exclusion apply 

to all federal government agencies and 

departments?

Yes. A suspension or debarment action by FEMA is 

effective throughout the Federal Executive Branch, if an 

entity or individual is suspended or debarred by FEMA 

they cannot do business with any of the other 

approximately 125 Federal Executive Branch agencies or 

departments. See 2 CFR § 180.140, and 2 CFR § 

180.145.

10. Is suspension or debarment a punishment?

No, suspension and debarment is not a punishment. 

Suspension and debarment actions are business decisions; 

they ensure that federal programs conduct business only 

with responsible persons. See 2 CFR § 180.125.

How to determine if an entity is 

suspended or debarred:

The names and addresses of all entities 

suspended or debarred are entered in the 

System for Award Management (SAM), an 

electronic database. See 2 CFR § 180.155, 2 

CFR § 180.500.

SAM Exclusions may be accessed at 

https://www.sam.gov (free registration 

required).