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CHAPTER 2-110

DEBARMENT AND SUSPENSION

2-110-00 What is debarment and suspension?

2-110-10 Why are people or entities debarred?

2-110-20 What is the System for Award Management (SAM) ?

2-110-30 What will we do to ensure that applicants are eligible?

2-110-40 What is your responsibility as a recipient?

2-110-50 How will we process debarments and suspensions?

2-110-00 What is debarment and suspension?

A. Debarment is an action taken by a Federal agency to exclude a person from participating

in Federal procurement or non-procurement transactions.

1. A Federal grant or cooperative agreement is considered a non-procurement

transaction.

2. A primary transaction is between us, the Office of Surface Mining Reclamation

and Enforcement (OSMRE), and you, the recipient of our assistance agreement.

Lower tier transactions are between you and any other entity, including all your

contracts and subgrants. A person who is debarred cannot participate in either

primary or lower tier transactions.

B. Suspension is a Federal action which temporarily halts operations under an assistance 

agreement because of a problem. Suspension allows time for corrective action by the 

recipient or the Federal agency’s decision to terminate the agreement.

2-110-10 Why are people or entities debarred?

A Federal agency may debar a person or entity for any of the following reasons.

A. A conviction or civil judgment for fraud, criminal offenses, violation of antitrust statutes,

embezzlement, theft, forgery, bribery, falsification of records, false claims, obstruction of

justice or other offenses that indicate a lack of business integrity or honesty.

B. A serious violation of a public agreement that affects the integrity of an agency program,

such as a willful failure to perform, history of substantial non-compliance, or willful

violation of statutory or regulatory provisions.

C. Any other cause of so serious or compelling a nature that it affects the participant’s

present responsibility, including knowingly doing business with an excluded person, or

failure to pay a substantial debt owed to a Federal agency, or violation of the Drug-Free

Workplace Act.
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2-110-20 What is the System for Award Management (SAM) ?

The System for Award Management (SAM) is the Official U.S Government system that 

consolidated several independent systems that are used in procurement and financial assistance 

for evaluating the financial worthiness of a contractor or recipient. SAM is a widely available 

source of the most current information about persons who are excluded or disqualified from 

transactions with the Federal government. Federal agencies and recipients may use the SAM. 

The General Services Administration (GSA) maintains the system.

2-110-30 What will we do to ensure that applicants are eligible?

A. OSMRE will not award financial assistance to applicants that are debarred or suspended 

or otherwise excluded from or ineligible for Federal financial assistance. 

B. Our awarding office must check SAM to determine whether a participant or principal is 

excluded before the authorized official approves any grant or cooperative agreement.

2-110-40 What is your responsibility as a recipient?

A. As a recipient, you must determine whether any of your own principals are excluded or 

disqualified. You must also determine if another person or persons at the next lower tier 

with whom you intend to do business is excluded or disqualified. You can make this 

determination in the following ways: 

1. Check SAM.

2. Add a clause or condition to the transaction agreement with that person.

B. You must inform the authorized official at our awarding office if at any time you learn 

that any certifications you may have included in your original application package were 

incorrect when submitted or have since become incorrect.

2-110-50 How will we process debarments and suspensions?

A. We will initiate action when we have adequate evidence to suspect that one of the causes 

for debarment or suspension has occurred. For example, an indictment is sufficient 

grounds for initiating a suspension.

B. We will use the following process to initiate debarment or suspension actions.

1. The awarding office must investigate and document information concerning the 

existence of a cause for debarment. The awarding office must forward its 

findings and recommendations to the AD-PS.
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2. The AD-PS will review the information and determine if the recommended action 

is appropriate. The AD-PS will forward the information to the Interior 

Department Office of Acquisition and Property Management for action.

3. The DOI Debarring/Suspending Official will process the debarment action as 

appropriate. See 2 CFR 180 for more information.