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[Federal Register Volume 77, Number 29 (Monday, February 13, 2012)]
[Notices]
[Pages 7579-7581]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-3307]

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GOVERNMENT ACCOUNTABILITY OFFICE

Debarment, Suspension, and Ineligibility of Contractors

AGENCY: Government Accountability Office.

ACTION: Policy statement.

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SUMMARY: On September 30, 2011, the Government Accountability Office 
(GAO) provided notice of its proposed policy to adopt the policies and 
procedures contained in the Federal Acquisition Regulation (FAR) 
regarding the debarment, suspension, and ineligibility of government 
contractors. Comments on GAO's policy were due on or before November 
14, 2011. GAO received two comments. Both comments expressed support 
for GAO's efforts to adopt policies and procedures regarding the 
debarment, suspension, and ineligibility of government contractors. 
Neither comment suggested any changes to GAO's policy statement. GAO is 
adopting, with minor changes, the policy statement published in the 
Federal Register on September 30, as set forth below.
    As a legislative branch agency, GAO is not subject to the 
requirements of the FAR. However, it is GAO's general policy to follow 
the FAR, as appropriate and applicable. Mandatory application of the 
FAR is not to be inferred from

[[Page 7580]]

GAO's adoption of this policy. Further, GAO's procurement rules are not 
contained in the Code of Federal Regulations, but instead are contained 
in an internal GAO document referred to as ``Government Accountability 
Office Procurement Guidelines'' (hereinafter, GAO's Procurement Order). 
As such, GAO's policy regarding debarment and suspension will be added 
as a chapter to GAO's Procurement Order.

DATES: This policy is effective February 13, 2012.

ADDRESSES: Questions concerning this policy can be addressed to 
Government Accountability Office, Office of the General Counsel, Attn: 
Legal Services, Room 7838, 441 G Street NW., Washington, DC 20548.

FOR FURTHER INFORMATION CONTACT: John A. Bielec, Assistant General 
Counsel, 202-512-2846 or email, [email protected].

SUPPLEMENTARY INFORMATION: Under GAO's policy, GAO will follow FAR 
Subpart 9.4. GAO's Procurement Order, GAO Order 0625.1, states that it 
is GAO's policy to follow the FAR and GAO has long-maintained 
procedures, consistent with FAR Subpart 9.4, that ensure that it 
contracts only with those entities and individuals (hereinafter, 
contractors) who are responsible. However, GAO's Procurement Order does 
not explicitly reference the debarment and suspension procedures 
contained in FAR Subpart 9.4. To make clear that FAR Subpart 9.4 
applies, GAO will amend its Procurement Order to formally and 
explicitly adopt FAR Subpart 9.4.
    Except as provided in FAR Subpart 9.4, GAO will not solicit offers 
from, award contracts to, or consent to subcontracts with, contractors 
who are listed on the Excluded Parties List System (EPLS), which is 
maintained by the General Services Administration. Further, if GAO 
debars, proposes for debarment, or suspends a contractor, GAO will, 
consistent with FAR Subpart 9.4, list that contractor in the EPLS. 
Given that GAO is a legislative branch agency, the listing of a 
contractor in the EPLS by GAO will have mandatory effect only as to 
GAO. Consistent with FAR 9.405-1, GAO may continue an existing contract 
with a contractor who is later debarred, proposed for debarment, or 
suspended.
    Consistent with the definitions of ``debarring official'' and 
``suspending official'' contained at FAR 9.403, the Comptroller 
General, as the head of GAO, will serve as the debarring official and 
suspending official (hereinafter, debarment/suspension official). The 
Comptroller General may designate another GAO official to serve as the 
debarment/suspension official. The Comptroller General will also be 
responsible for deciding whether to solicit offers from, award 
contracts to, or consent to subcontracts with contractors who have been 
debarred, suspended, or proposed for debarment, and whether to 
terminate a current contract or subcontract in existence at the time 
the contractor was debarred, suspended, or proposed for debarment.
    GAO's Acquisition Management office (AM), which is responsible for 
the majority of GAO's contracting activities, will be the GAO unit with 
primary responsibility for investigating and referring potential 
debarment and suspension actions to the debarment/suspension official 
for his or her consideration. GAO's procurement activities are largely 
centralized in AM, which is staffed by contracting officers and other 
acquisition professionals. As such, AM staff has the required technical 
knowledge to handle debarment and suspension referrals and is in the 
best position to learn of matters that may warrant debarment and/or 
suspension. Moreover, AM is the first point of contact for Contracting 
Officers' Representatives, who have direct knowledge of any problems 
with contractor performance. Thus, individuals--including GAO employees 
and members of the public--who believe that there may be grounds to 
debar or suspend a contractor should contact AM and provide them with 
all relevant information. Whenever AM learns of information that 
indicates there may be grounds for debarring or suspending a 
contractor, AM will gather appropriate information and refer the matter 
to the debarment/suspension official. All such referrals will include a 
recommendation by the Director of AM as to a proposed course of action. 
Likewise, AM will have responsibility for recommending to the 
Comptroller General whether or not to continue current contracts with, 
solicit offers from, award contracts to, or consent to subcontracts 
with a contractor who is debarred, suspended, or proposed for 
debarment.
    Given its central role in GAO's procurement process, AM, in 
consultation with GAO's Office of General Counsel, will also be 
responsible for establishing written procedures that address the key 
aspects of GAO's debarment/suspension program.
    Accordingly, the Government Accountability Office has adopted the 
following policy and will incorporate it into GAO's Procurement Order:
    GAO will follow the policies and procedures contained at FAR 
Subpart 9.4--Debarment, Suspension, and Ineligibility. GAO will not 
solicit offers from, award contracts to, or consent to subcontracts 
with contractors who are listed on the Excluded Parties List System 
(EPLS), except as otherwise provided for in FAR Subpart 9.4. GAO will 
report to the EPLS any contractor GAO debars, suspends, or proposes for 
debarment. Such action will have mandatory application only to GAO. 
Notwithstanding the debarment, suspension, or proposed debarment of a 
contractor, GAO may continue contracts or subcontracts in existence at 
the time the contractor was debarred, suspended, or proposed for 
debarment, unless the Comptroller General (CG) directs otherwise.
    The CG or a designee will serve as the debarring official and 
suspending official (debarment/suspension official). The CG will also 
decide whether to solicit offers from, award contracts to, or consent 
to subcontracts with contractors who have been debarred, suspended, or 
proposed for debarment and whether to terminate a current contract or 
subcontract in existence at the time the contractor was debarred, 
suspended, or proposed for debarment.
    Acquisition Management (AM) will have primary responsibility for 
investigating and referring potential debarment/suspension actions to 
the debarment/suspension official for consideration. As such, any 
person who believes that there may be grounds to debar or suspend a 
person or entity from contracting with GAO should contact AM and 
provide them with all relevant information. AM will also have 
responsibility for recommending to the CG whether or not to continue 
current contracts with, solicit offers from, award contracts to, or 
consent to subcontracts with a contractor who is debarred, suspended, 
or proposed for debarment.
    In consultation with the Office of General Counsel, AM will 
establish and maintain written procedures for:
    (1) The prompt reporting, investigation, and referral to the 
debarment/suspension official of matters appropriate for that 
official's consideration. All debarment/suspension referrals shall 
include a recommendation by the Director of AM as to a proposed course 
of action;
    (2) The debarment decisionmaking process, which shall afford the 
contractor (and any specifically named affiliates) an opportunity to 
submit, in person, in writing, or through a representative, information 
and argument in opposition to the proposed debarment;

[[Page 7581]]

    (3) The suspension decisionmaking process, which shall afford the 
contractor (and any specifically named affiliates) an opportunity, 
following the imposition of suspension, to submit, in person, in 
writing, or through a representative, information and argument in 
opposition to the suspension;
    (4) Recommending to the CG whether or not to solicit offers from, 
award contracts to, or consent to subcontracts with a contractor who is 
debarred, suspended, or proposed for debarment; and
    (5) Recommending to the CG whether or not to continue current 
contracts with a contractor or subcontractor who is debarred, 
suspended, or proposed for debarment.
    OGC will review for legal sufficiency:
    (1) Referrals by AM to the debarment/suspension official;
    (2) Recommendations by AM to the CG that GAO solicit offers from, 
award contracts to, or consent to subcontracts with a contractor who is 
debarred, suspended, or proposed for debarment;
    (3) Recommendations by AM to the CG to terminate a current contract 
because a contractor or subcontractor was subsequently debarred, 
suspended, or proposed for debarment; and
    (4) Notices of proposed debarment, notices of suspension, or any 
other communication to a contractor regarding that contractor's 
potential or actual suspension or debarment.

Lynn H. Gibson,
General Counsel, U.S. Government Accountability Office.
[FR Doc. 2012-3307 Filed 2-10-12; 8:45 am]
BILLING CODE 1610-02-P
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