# Suspension and Debarment: What Small Businesses Should Know

GSA's Suspension & Debarment Division (S&D) processes suspension and debarment cases and provides direct support to GSA's Suspension & Debarment Official.

## Suspension and Debarment Webinar

***Disclaimer: The webinar recording and FAQs are not legal advice.***

                        - Webinar slide deck [PPTX - 188 KB]

## Frequently Asked Questions (FAQs)

### If a company is suspended or debarred, can they still be a subcontractor to a prime contractor that is not suspended or debarred? If so, what approvals does the prime contractor need to have to subcontract with that company?

There are limitations on an excluded contractor's ability to act as a subcontractor under a prime contract. Refer to FAR 9.405-2, "Restrictions on subcontracting".

### Where in the FAR can I find who can be disbarred?

Any person or organization that meets the FAR 9.403 definition of a "Contractor" can be suspended or debarred.

### Is there a working definition of "lack of business integrity or lack of business honesty"?

The FAR does not further define a "lack of business integrity or business honesty".

### What is antitrust violation?

"Violation of Federal or State antitrust statutes relating to the submission of offers" is a cause for suspension or debarment stated in FAR 9.4.

### My company was a subcontractor to a prime contractor that received a "cause letter." They were given a timeframe to correct their behavior, which they did. What would have happened to the contract (and its subcontractors) if the prime contractor had not fixed the problem?

FAR 9.4 suspension or debarment of a contractor does not require the Government to terminate the contractor's current contracts.

### Can you expand on False Claims act as cause for debarment? Does the False Claims Act have to be proven first?

FAR 9.4 lists a suspension or debarment cause for "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...Violation of the civil False Claims Act (31 U.S.C. 3729-3733)". This cause does not require the contractor's violation of the False Claims Act to be proven by a court judgment.

### Where do I find the contractor's name in SAM.gov?

To determine whether a contractor is excluded on SAM.gov, click "Entity Information", select "Exclusions" from the drop-down menu, enter the contractor's name, then click the search icon.

### If a contractor suspects a government agency employee of fraud, what steps do you recommend that the contractor take to address it?

A contractor may consider reporting Government agency employee misconduct to the agency's office of the inspector general.

### Does GSA use cure notices prior to a debar? In other words, what's the least path of resistance to trying to avoid debarment?

In appropriate situations, a Suspension & Debarment Official may issue a contractor a Request For Information or a Show Cause Letter. These actions do not exclude the contractor.

### Is being removed for no sales on the GSA Multiple Award Schedule, different than suspension and debarment?

The Government's cancellation of a GSA Multiple Award Schedule contract based on insufficient reported sales is a different process, under different authority, than suspension and debarment.

### What are the timelines around suspensions? Also, if debarred, does that mean you can no longer practice?

Generally, suspensions may last up to 12 months before court proceedings are initiated. Once court proceedings are initiated, the suspension may stay in effect until proceedings are concluded. Debarment of a contractor is a Governmentwide exclusion from Federal contracts and grants.

### How do we confirm that persons or business we are considering doing business with are on the up and up and do not have convictions or have been disbarred?

You can determine whether a contractor is excluded by searching the contractor's name at SAM.gov. Click "Entity Information", select "Exclusions" from the drop-down menu, enter the contractor's name, then click the search icon.

### On average, how many companies are suspended and/or debarred each year?

In recent years, the numbers of Government suspensions and debarments of individuals and companies have been in the thousands. The Interagency Suspension & Debarment Committee reports this data annually. These reports are posted at: www.acquisition.gov/isdc-reporting.

### Does debarment follow the "C-suite" executive-level managers in a company, not just the named company?

FAR 9.403 defines a "Contractor". Any person or organization that meets that definition can be suspended or debarred. A Suspension & Debarment Official will decide whether debarment of any individuals or companies is necessary on a case-by-case basis.

### Does the Department of Labor report to the debarment board?

Yes, the Department of Labor does have suspension and debarment authority.

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