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 Federal Retirement Thrift Investment Board

5 January 2023

TO: FRTIB Personnel, Contractors, and Subcontractors

FROM: Mark Chranowski

Senior Procurement Executive

SUBJECT: FRTIB Suspension and Debarment Program

Purpose:

This memorandum informs acquisition staff and current and potential contractors (or 

subcontractors) of the Agency’s policy on suspension and debarment of contractors (or 

subcontractors) from contracting with FRTIB.

Scope:

The process set forth in this memorandum applies to contractors submitting offers to provide 

services or entering into contracts to provide services to FRTIB.

Responsibilities:

Responsibilities of the Office of General Counsel and the Agency’s acquisition staff, 

including Contracting Officers/Specialists, Program Office personnel, and 

Contracting Officer’s Representatives (CORs) in implementing this program are 

included below in sections.

A. Authority

• Executive Order 12689—Debarment and Suspension, August 15, 1989;

• Public Law 103-355, Section 2455 (31 U.S.C. § 6101);

• Executive Order 12549—Debarment and Suspension, February 18, 1986; and

• Federal Acquisition Regulation (FAR) Subpart 9.4—Debarment, Suspension, and 

Ineligibility (48 C.F.R. §§ 9.4, et seq).

B. Definitions
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1) Adequate Evidence – information sufficient to support the reasonable belief that a 

particular act or omission has occurred

2) Affiliated Business Entity – company that is under the control of the contractor, is in 

control of the contractor, or is under common control with the contractor

3) Civil Judgment – judgment of a civil offense or liability by any court of competent 

jurisdiction in the United States

4) Company – any corporation, firm, partnership, society, joint venture, business trust, 

association, consortium, or similar organization

5) Conflict of Interest – a situation in which: 

i. A contractor; any management officials or affiliated business entities of a 

contractor; or any employees, agents, or subcontractors of a contractor who 

will perform services under a proposed or existing contract with the FRTIB:

1. Has one or more personal, business, or financial interests or 

relationships that would cause a reasonable individual with knowledge 

of the relevant facts to question the integrity or impartiality of those 

who are or will be acting under a proposed or existing FRTIB contract,

2. Is an adverse party to the FRTIB, 

3. Has ever been suspended, disbarred, or debarred from contracting 

with a federal entity or has ever had a contract with FRTIB rescinded 

or terminated prior to the contract's completion and which rescission 

or termination involved issues of conflicts of interest or ethical 

responsibilities; or

4. Any other f acts exist that the FRTIB, in its sole discretion, determines 

may, through performance of a proposed or existing FRTIB contract, 

provide a contractor with an unfair competitive advantage that favors 

the interests of the contractor or any person with whom the contractor 

has or is likely to have a personal or business relationship.

6) Contractor – person or company that has submitted an offer to perform services for 

the FRTIB or has a contractual arrangement with the FRTIB to perform services. For 

purposes of this part, contractor also includes:

i. A contractor's affiliated business entities, key employees, and management 

officials of the contractor;

ii. Any subcontractor performing services for FRTIB and the management 

officials and key employees of such subcontractors; and

iii. Any entity or organization seeking to perform services for FRTIB.

7) Contracts – agreement(s) between FRTIB and a contractor, including, but not limited 

to, agreements identified as "task orders," for a contractor to provide services to 

FRTIB. Contracts also means contracts between a contractor and its subcontractor

8) Senior Procurement Executive (SPE) – the Suspension and Debarment Official is the 

SPE. The SPE shall act as the official responsible for rendering suspension and 

debarment decisions under this part. In addition to taking suspension and/or 

debarment action under this part, the SPE has authority to terminate debarment and 
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suspension proceedings. As used in this part, SPE includes any official designated 

by the SPE to act on the SPE's behalf.

C. Suspension & Debarment Process

Information concerning the possible existence of any cause for suspension or exclusion 

shall be reported to the SPE.

1) Notices

i. Notice of proposal to debar. A notice of proposed debarment shall be issued 

by the SPE advising the contractor and any specifically named affiliates: 

• That debarment is being considered; 

• Of the reasons for the proposed debarment in terms sufficient to 

put the contractor on notice of the conduct or transaction(s) upon 

which it is based; 

• Of the cause(s) relied upon for proposing debarment; 

• That, within 30 days after receipt of the notice, the contractor may 

submit, in person, in writing, or through a representative, 

information and argument in opposition to the proposed 

debarment, including any additional specific information that 

raises a genuine dispute over the material facts; 

• Of the FRTIB’s procedures governing debarment decision-making 

(i.e., a copy of the Suspension and Debarment Program); 

• Of the effect of the issuance of the notice of proposed debarment; 

and 

• Of the potential effect of an actual debarment. 

ii. Notice of suspension. When a contractor and any specifically named affiliates 

are suspended, they shall be immediately advised: 

• That they have been suspended and that the suspension is based on 

an indictment or other adequate evidence that the contractor has 

committed irregularities: 

o Of a serious nature in business dealings with the Government, 

or 

o Seriously reflecting on the propriety of further Government 

dealings with the contractor—any such irregularities shall be 

described in terms sufficient to place the contractor on notice 

without disclosing the Government’s evidence; 

• That the suspension is for a temporary period pending the completion 

of an investigation and such legal proceedings as may ensue;

o Of the cause(s) relied upon for imposing suspension; 

o Of the effect of the suspension; 

o That, within 30 days after receipt of the notice, the contractor 

may submit, in person, in writing, or through a representative, 

information and argument in opposition to the suspension, 

including any additional specific information that raises a 

genuine dispute over the material facts; and 
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• That additional proceedings to determine disputed material f acts will 

be conducted unless: 

o The action is based on an indictment; or 

o A determination is made by the SPE that the substantial 

interests of the Government in pending or contemplated legal 

proceedings based on the same facts as the suspension 

would be prejudiced. 

iii. Service of notices. Notices will be sent to the contractor by first class mail, 

postage prepaid. For purposes of compliance with this section, notice shall be 

considered to have been received by the contractor if the notice is properly 

mailed to the last known address of such contractor. Whenever practical, a

copy of the notice will also be transmitted to the contractor by email. In the 

event the notice is not sent by facsimile, a copy will be sent by an overnight 

delivery service such as Express Mail or a commercial equivalent

2) Responses

The contractor will have 15 days from the date of the notice within which to respond. 

The response shall be in writing and may include information and argument in 

opposition to the proposed debarment and/or suspension, including any additional 

specific information pertaining to the possible causes for debarment; and information 

and argument in mitigation of the proposed period of debarment. 

The response may request a meeting with an FRTIB official identified in the notice to 

permit the contractor to discuss issues of fact or law relating to the suspension 

and/or proposed debarment or to otherwise resolve the pending matters. 

Any such meetings between a contractor and FRTIB shall take such form as FRTIB 

deems appropriate. 

In cases of suspensions, no meeting will be held where the SPE determines that a 

substantial interests of the Government would be prejudiced by such a meeting and 

a suspension is based on the same facts as pending or contemplated legal 

proceedings. 

Failure to respond to the notice shall be deemed an admission of the existence of the 

cause(s) for suspension and/or debarment set forth in the notice and an acceptance 

of the period of suspension/debarment proposed therein. In such circumstances, 

FRTIB may proceed to a final decision without further proceedings. 

Where a contractor has received more than one notice, FRTIB may consolidate the 

pending proceedings, including the scheduling of any meetings. 

The SPE shall investigate and compile an administrative record, to the extent he/she 

deems necessary.

3) SPE Debarment Decisions
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If the SPE decides to impose debarment, the contractor and any affiliates involved 

shall be given prompt notice by certified mail, return receipt requested: 

• Referring to the notice of proposed debarment; 

• Specifying the reasons for debarment; 

• Stating the period of debarment, including effective dates; and 

• Advising that the debarment is effective throughout the executive branch of 

the Government unless the head of an agency or a designee makes the 

statement called for by FAR 9.406-1(c). 

If debarment is not imposed, the debarring official shall promptly notify the contractor 

and any affiliates involved, by certified mail, return receipt requested. 

SPE suspension decisions. Prompt written notice of suspension shall be sent to the 

contractor and any affiliates involved, by certified mail, return receipt requested.

D. Scope and Causes of Debarment

1) Scope

The SPE may debar a contractor from the FRTIB contracting program for any of the 

causes set forth in this memorandum. 

Debarment is a serious action to be imposed when there exists a preponderance of 

the evidence that one or more of the causes applies to a contractor. Contractors 

debarred from FRTIB contracting programs are prohibited from entering into any new 

contracts with FRTIB for the duration of the period of debarment as determined 

pursuant to this part. FRTIB shall not solicit offers from, award contracts to extend or 

modify existing contracts, award task orders under existing contracts, or consent to 

subcontracts with such contractors. Debarred contractors are also prohibited from 

conducting business with FRTIB as agents or representatives of other contractors. 

Except when one or more of the established mandatory bars to contracting are 

shown to exist, the existence of a cause for debarment does not necessarily require 

that the contractor be debarred; the seriousness of the contractor's acts or omissions 

and any mitigating or aggravating circumstances shall be considered in making any 

debarment decision.

2) Causes

• FRTIB may debar a contractor upon a finding that:

• The contractor has been convicted of any felony; 

• The contractor has demonstrated a pattern or practice of deflation; 

• The contractor has failed to disclose a material fact to FRTIB; 

• The contractor has failed to disclose any material adverse change in the 

representations and certifications provided to FRTIB; 
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• The contractor is debarred from participating in other federal programs; 

• The contractor has been convicted of, or subject to a civil judgment for: 

o Commission of fraud or a criminal offense in connection with obtaining, 

attempting to obtain, or performing a public or private agreement or 

transaction, or conspiracy to do the same; 

o Violation of federal or state antitrust statutes, including those proscribing 

price fixing between competitors, allocation of customers between 

competitors, and bid rigging, or conspiracy to do the same; 

o Commission of embezzlement, theft, forgery, bribery, falsification or 

destruction of records, making false statements, receiving stolen property, 

making false claims, obstruction of justice, or conspiracy to do the same; 

o Commission of any other offense indicating a breach of trust, dishonesty, 

or lack of integrity, or conspiracy to do the same; 

• The contractor's performance under previous contract(s) with FRTIB has 

resulted in: 

o The FRTIB declaring such contract(s) to be in default; or 

o The termination of such contract(s) for poor performance; or 

o A violation of the terms of a contract that would have resulted in a default 

or termination of the contract for poor performance if that violation had 

been discovered during the course of the contract; or 

• The contractor has engaged in any conduct: 

o Indicating a breach of trust, dishonesty, or lack of integrity that seriously 

and directly affects its ability to meet standards of present responsibility 

required of an FRTIB contractor; or 

o So serious or compelling in nature that it adversely affects the ability of a 

contractor to meet the minimum ethical standards required by these 

procedures. 

In assessing the adequacy of the evidence, the SPE will consider how much 

information is available, how credible it is given the circumstances, whether 

important allegations are corroborated and what inferences can reasonably be drawn 

as a result.

E. Scope and Causes of Suspension

1) Scope
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The SPE may suspend a contractor for any of the causes set forth in this 

memorandum. 

Suspension is an action to be imposed when there exists adequate evidence of one 

or more causes. This includes, but is not limited to, situations where immediate 

action is necessary to protect the integrity of the FRTIB contracting program and/or 

the security of FRTIB assets during the pendency of legal or investigative 

proceedings initiated by FRTIB, any federal agency or any law enforcement 

authority. 

The duration of any suspension action shall be for a temporary period pending the 

completion of an investigation and such other legal proceedings as may ensue. 

A suspension shall become effective immediately upon issuance of the Notice of 

Suspension. 

Contractors suspended from FRTIB contracting programs are prohibited from 

entering into any new contracts with FRTIB for the duration of the period of 

suspension. FRTIB shall not solicit offers from, award contracts to extend or modify 

existing contracts, award task orders under existing contracts, or consent to 

subcontracts with such contractors. Suspended contractors are also prohibited from 

conducting business with FRTIB as agents or representatives of other contractors.

2) Causes

Suspension may be imposed upon adequate evidence, for the following causes: 

• Of suspension by another federal agency; 

• That a cause for debarment may exist; 

• Of the commission of any other offense indicating a breach of trust, 

dishonesty, or lack of integrity that seriously and directly affects the minimum 

ethical standards required of an FRTIB contractor; or 

• Of any other cause so serious or compelling in nature that it adversely affects 

the ability of a contractor to meet the minimal ethical standards required by 

these procedures. 

Indictment for any offense described under “Causes for debarment” may be 

adequate evidence to suspend a contractor. 

In assessing the adequacy of the evidence, the SPE will consider how much 

information is available, how credible it is given the circumstances, whether or not 

important allegations are corroborated and what inferences can reasonably be drawn 

as a result.

F. Imputation of Causes
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Where there is cause to suspend and/or debar any affiliated business entity of the 

contractor, that conduct may be imputed to the contractor if the conduct occurred in 

connection with the affiliated business entity's performance of duties for or on behalf of the 

contractor, or with the contractor's knowledge, approval, or acquiescence. The contractor's 

acceptance of the benefits derived from the conduct shall be evidence of such knowledge, 

approval, or acquiescence. 

Where there is cause to suspend and/or debar any contractor, that conduct may be imputed 

to any affiliated business entity, key employee, or management official of a contractor who 

participated in, knew of or had reason to know of the contractor's conduct. 

Where there is cause to suspend and/or debar a key employee or management official of a 

contractor, that cause may be imputed to the contractor if the conduct occurred in 

connection with the key employee or management official's performance of duties for or on 

behalf of the contractor, or with the contractor's knowledge, approval, or acquiescence. The 

contractor's acceptance of the benefits derived from the conduct shall be evidence of such 

knowledge, approval, or acquiescence. 

Where there is cause to suspend and/or debar one contractor participating in a joint venture 

or similar arrangement, that cause may be imputed to other participating contractors if the 

conduct occurred for or on behalf of the joint venture or similar arrangement, or with the 

knowledge, approval, or acquiescence of these contractors. Acceptance of the benefits 

derived from the conduct shall be evidence of such knowledge, approval, or acquiescence. 

Where there is cause to suspend and/or debar a subcontractor, that cause may be imputed 

to the contractor for which the subcontractor performed services, if the conduct occurred for 

or on behalf of the contractor and with the contractor's knowledge, approval, or 

acquiescence. Acceptance of the benefits derived from the conduct shall be evidence of 

such knowledge, approval, or acquiescence.

G. Additional Proceedings as to Disputed Material Facts

In actions not based upon a conviction or civil judgment, if the SPE finds that the 

contractor's submission raises a genuine dispute over facts material to the proposed 

suspension and/or debarment, the contractor shall be afforded an opportunity to appear at 

77 K St. NE, Suite 1000 (with counsel, if desired), submit documentary evidence, present 

witnesses, and confront any witnesses FRTIB presents. 

The SPE may refer disputed material facts to another official for analysis and 

recommendation. 

If requested, a transcribed record of any additional proceedings shall be made available at 

cost to the contractor.

H. SPE Decision-making

Standard of proof: 
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• A debarment must be based on a finding that the cause(s) for debarment is 

established by a preponderance of the evidence in the administrative record of the 

case; and 

• A suspension must be based on a finding that the cause(s) for suspension is 

established by adequate evidence in the administrative record of the case. 

The administrative record consists of the portion of any information, reports, documents or 

other evidence identified and relied upon in the Notice of proposal to debar, the Notice of 

Suspension and/or supplemental notices, if any, together with any material portions of the 

contractor's response. When additional proceedings are necessary to determine disputed 

material facts, the SPE shall base the decision on the disputed material facts, together with 

any information and argument submitted by the contractor and any other information in the 

administrative record. 

In actions based upon a conviction, judgment, a final enforcement action by a federal 

financial institution regulatory agency, or in which all f acts and circumstances material to the 

debarment action have been finally adjudicated in another forum, the SPE may debar a 

contractor without regard to the guidelines set out in these procedures. Any such decisions 

will be subject to the review and reconsideration provisions. 

Notice of decisions. Contractors shall be given prompt notice of the SPE's decision. If the 

SPE suspends a contractor or imposes a period of debarment, the decision shall: 

Set forth the cause(s) for suspension and/or debarment included in the Notice that were 

found by adequate evidence (for suspensions) or a preponderance of the evidence (for 

debarments) with reference to the administrative record support for that finding; 

• Set forth the effect of the debarment action and the effective dates of that action; and 

• Refer the contractor to its procedural rights of review and reconsideration. 

If the SPE decides that a period of debarment or suspensions is not warranted, the notice of 

proposed debarment may be withdrawn, or the proceeding may be otherwise terminated. A 

decision to terminate a debarment proceeding may include the imposition of appropriate 

conditions on the contractor in their future dealings with FRTIB.

I. Duration of Suspensions and Debarment

1) Suspension Duration

Suspensions shall be for a temporary period pending the completion of an 

investigation or other legal or debarment proceedings. 

If legal or administrative proceedings are not initiated within 12 months after the date 

of the suspension notice, the suspension shall be terminated unless an extension is 

requested in writing. In such cases, the suspension may be extended for an 

additional six months. In no event may a suspension be imposed for more than 18 

months, unless legal or administrative proceedings have been initiated within that 

period. 
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FRTIB shall notify the Department of Justice of an impending termination of a 

suspension at least 30 days before the 12-month period expires to give the 

Department of Justice an opportunity to request an extension. 

The time limitations f or suspension in this section may be waived by the affected 

contractor.

2) Debarment Duration

Debarments shall be for a period commensurate with the seriousness of the cause(s) 

after due consideration of mitigating evidence presented by the contractor. 

If a suspension precedes a debarment, the suspension period shall be considered in 

determining the debarment period. 

Debarment for cause generally should not exceed three years, but where 

circumstances warrant, a longer period of debarment may be imposed. 

The SPE may extend an existing debarment for an additional period if the SPE 

determines that an extension is necessary to protect the integrity of FRTIB 

contracting program and the public interest. However, a debarment may not be 

extended solely based on the facts and circumstances upon which the initial 

debarment action was based. If debarment for an additional period is determined to 

be necessary, the procedures of FAR 9.406-3 shall be followed to extend the 

debarment.

J. Abrogation of Contracts

FRTIB may, in its discretion, rescind or terminate any contract, for cause, in existence at the 

time a contractor is suspended or disbarred. 

Any contract not rescinded or terminated shall continue in force in accordance with the 

terms thereof. 

The right to rescind or terminate a contract in existence is cumulative and in addition to any 

other remedies or rights FRTIB may have under the terms of the contract, at law, or 

otherwise.

K. Exceptions to Suspensions and Debarments

Exceptions to the effects of suspensions and debarments may be available in unique 

circumstances, where there are compelling reasons to utilize a particular contractor for a 

specific task. Requests for such exceptions may be submitted only by the FRTIB program 

office requesting the contract services. 

In the case of the modification or extension of an existing contract, the SPE may except 

such a contracting action from the effects of suspension and/or debarment upon a 

determination, in writing, that a compelling reason exists f or utilization of the contractor in 

the particular instance. The SPE's authority under this section shall not be delegated to any 

lower official. 
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In the case of new contracts, the Ethics Committee may except a particular new contract 

from the effects of suspension and/or debarment upon a determination in writing that a 

compelling reason exists f or utilization of the contractor in the particular instance.

L. Review and Reconsideration of SPE Decisions

1) Review

A suspended and/or disbarred contractor may appeal the suspension/debarment 

decision to the Ethics Committee. 

To avail itself of the right to appeal, a suspended and/or disbarred contractor must 

file a written notice of intent to appeal within 5 days of the SPE's decision. 

The appeal shall be filed in writing within 30 days of receipt of the decision. 

The Ethics Committee, at its discretion and after determining that it is in the best 

interests of FRTIB, may stay the effect of the suspension and/or debarment pending 

conclusion of its review of the matter.

2) Reconsideration

A suspended and/or disbarred contractor may submit a request to the SPE to 

reconsider the suspension and/or debarment decision, reduce the period of 

debarment or terminate the suspension and/or debarment. 

Such requests shall be in writing and supported by documentation that the requested 

action is justified by: 

• Reversal of the conviction or civil judgment upon which the suspension 

and/or debarment was based; 

• Newly discovered material evidence; 

• Bona fide change in ownership or management; 

• Elimination of other causes for which the suspension and/or debarment was 

imposed; or 

• Other reasons the SPE deems appropriate. 

A request for reconsideration based on the reversal of the conviction or civil 

judgment may be filed at any time. 

Requests for reconsideration based on other grounds may only be filed during the 

period commencing 60 days after the SPE's decision imposing the suspension 

and/or debarment. Only one such request may be filed in any twelve-month period. 
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The SPE's decision on a request for reconsideration is subject to the review 

procedure set forth in paragraph (1) of this section (L).

Approval

Name: ___________________________

 Mark Chranowski

Title: Senior Procurement Executive