Source: http://ecfr.io/Title-02/pt2.1.180
Timestamp: 2019-04-24 16:06:59+00:00

Document:
§180.5 What does this part do?
§180.10 How is this part organized?
§180.15 To whom does the guidance apply?
§180.20 What must a Federal agency do to implement these guidelines?
§180.25 What must a Federal agency address in its implementation of the guidance?
§180.30 Where does a Federal agency implement these guidelines?
§180.35 By when must a Federal agency implement these guidelines?
§180.40 How are these guidelines maintained?
§180.45 Do these guidelines cover persons who are disqualified, as well as those who are excluded from nonprocurement transactions?
§180.100 How are subparts A through I organized?
§180.105 How is this part written?
§180.110 Do terms in this part have special meanings?
§180.115 What do Subparts A through I of this part do?
§180.120 Do subparts A through I of this part apply to me?
§180.125 What is the purpose of the nonprocurement debarment and suspension system?
§180.130 How does an exclusion restrict a person's involvement in covered transactions?
§180.135 May a Federal agency grant an exception to let an excluded person participate in a covered transaction?
§180.140 Does an exclusion under the nonprocurement system affect a person's eligibility for Federal procurement contracts?
§180.145 Does an exclusion under the Federal procurement system affect a person's eligibility to participate in nonprocurement transactions?
§180.150 Against whom may a Federal agency take an exclusion action?
§180.155 How do I know if a person is excluded?
§180.200 What is a covered transaction?
§180.205 Why is it important if a particular transaction is a covered transaction?
§180.210 Which nonprocurement transactions are covered transactions?
§180.215 Which nonprocurement transactions are not covered transactions?
§180.220 Are any procurement contracts included as covered transactions?
§180.225 How do I know if a transaction in which I may participate is a covered transaction?
§180.300 What must I do before I enter into a covered transaction with another person at the next lower tier?
§180.305 May I enter into a covered transaction with an excluded or disqualified person?
§180.310 What must I do if a Federal agency excludes a person with whom I am already doing business in a covered transaction?
§180.315 May I use the services of an excluded person as a principal under a covered transaction?
§180.320 Must I verify that principals of my covered transactions are eligible to participate?
§180.325 What happens if I do business with an excluded person in a covered transaction?
§180.330 What requirements must I pass down to persons at lower tiers with whom I intend to do business?
§180.335 What information must I provide before entering into a covered transaction with a Federal agency?
§180.340 If I disclose unfavorable information required under §180.335, will I be prevented from participating in the transaction?
§180.345 What happens if I fail to disclose information required under §180.335?
§180.350 What must I do if I learn of information required under §180.335 after entering into a covered transaction with a Federal agency?
§180.355 What information must I provide to a higher tier participant before entering into a covered transaction with that participant?
§180.360 What happens if I fail to disclose information required under §180.355?
§180.365 What must I do if I learn of information required under §180.355 after entering into a covered transaction with a higher tier participant?
§180.400 May I enter into a transaction with an excluded or disqualified person?
§180.405 May I enter into a covered transaction with a participant if a principal of the transaction is excluded?
§180.410 May I approve a participant's use of the services of an excluded person?
§180.415 What must I do if a Federal agency excludes the participant or a principal after I enter into a covered transaction?
§180.420 May I approve a transaction with an excluded or disqualified person at a lower tier?
§180.425 When do I check to see if a person is excluded or disqualified?
§180.430 How do I check to see if a person is excluded or disqualified?
§180.435 What must I require of a primary tier participant?
§180.440 What action may I take if a primary tier participant knowingly does business with an excluded or disqualified person?
§180.445 What action may I take if a primary tier participant fails to disclose the information required under §180.335?
§180.450 What action may I take if a lower tier participant fails to disclose the information required under §180.355 to the next higher tier?
§180.500 What is the purpose of the System for Award Management Exclusions (SAM Exclusions)?
§180.505 Who uses SAM Exclusions?
§180.510 Who maintains SAM Exclusions?
§180.515 What specific information is in SAM Exclusions?
§180.520 Who places the information into SAM Exclusions?
§180.525 Whom do I ask if I have questions about a person in SAM Exclusions?
§180.530 Where can I find SAM Exclusions?
§180.600 How do suspension and debarment actions start?
§180.605 How does suspension differ from debarment?
§180.610 What procedures does a Federal agency use in suspension and debarment actions?
§180.615 How does a Federal agency notify a person of a suspension or debarment action?
§180.620 Do Federal agencies coordinate suspension and debarment actions?
§180.625 What is the scope of a suspension or debarment?
§180.630 May a Federal agency impute the conduct of one person to another?
§180.635 May a Federal agency settle a debarment or suspension action?
§180.640 May a settlement include a voluntary exclusion?
§180.645 Do other Federal agencies know if an agency agrees to a voluntary exclusion?
§180.650 May an administrative agreement be the result of a settlement?
§180.655 How will other Federal awarding agencies know about an administrative agreement that is the result of a settlement?
§180.660 Will administrative agreement information about me in the designated integrity and performance system accessible through SAM be corrected or updated?
§180.700 When may the suspending official issue a suspension?
§180.705 What does the suspending official consider in issuing a suspension?
§180.710 When does a suspension take effect?
§180.715 What notice does the suspending official give me if I am suspended?
§180.720 How may I contest a suspension?
§180.725 How much time do I have to contest a suspension?
§180.730 What information must I provide to the suspending official if I contest the suspension?
§180.735 Under what conditions do I get an additional opportunity to challenge the facts on which the suspension is based?
§180.740 Are suspension proceedings formal?
§180.745 How is fact-finding conducted?
§180.750 What does the suspending official consider in deciding whether to continue or terminate my suspension?
§180.755 When will I know whether the suspension is continued or terminated?
§180.760 How long may my suspension last?
§180.800 What are the causes for debarment?
§180.805 What notice does the debarring official give me if I am proposed for debarment?
§180.810 When does a debarment take effect?
§180.815 How may I contest a proposed debarment?
§180.820 How much time do I have to contest a proposed debarment?
§180.825 What information must I provide to the debarring official if I contest the proposed debarment?
§180.830 Under what conditions do I get an additional opportunity to challenge the facts on which the proposed debarment is based?
§180.835 Are debarment proceedings formal?
§180.840 How is fact-finding conducted?
§180.845 What does the debarring official consider in deciding whether to debar me?
§180.850 What is the standard of proof in a debarment action?
§180.855 Who has the burden of proof in a debarment action?
§180.860 What factors may influence the debarring official's decision?
§180.865 How long may my debarment last?
§180.870 When do I know if the debarring official debars me?
§180.875 May I ask the debarring official to reconsider a decision to debar me?
§180.880 What factors may influence the debarring official during reconsideration?
§180.885 May the debarring official extend a debarment?
§180.945 System for Award Management Exclusions (SAM Exclusions).
§180.990 Preponderance of the evidence.
§180.1020 Voluntary exclusion or voluntarily excluded.
Authority: Pub. L. 109-282; 31 U.S.C. 6102, Sec. 2455, Pub. L. 103-355, 108 Stat. 3327; E.O. 12549, 3 CFR, 1986 Comp., p. 189; E.O. 12689, 3 CFR, 1989 Comp., p. 235.
Source: 70 FR 51865, Aug. 31, 2005, unless otherwise noted.
Editorial Note: Nomenclature changes to part 180 appear at 79 FR 75879, Dec. 19, 2014.
This part provides Office of Management and Budget (OMB) guidance for Federal agencies on the governmentwide debarment and suspension system for nonprocurement programs and activities.
This part is organized in two segments.
(a) Sections 180.5 through 180.45 contain general policy direction for Federal agencies' use of the standards in subparts A through I of this part.
(4) Related policies and procedures to ensure the effectiveness of those actions.
The guidance provides OMB guidance only to Federal agencies. Publication of the guidance in the CFR does not change its nature—it is guidance and not regulation. Federal agencies' implementation of the guidance governs the rights and responsibilities of other persons affected by the nonprocurement debarment and suspension system.
As required by Section 3 of E.O. 12549, each Federal agency with nonprocurement programs and activities covered by subparts A through I of the guidance must issue regulations consistent with those subparts.
(a) Must establish policies and procedures for that agency's nonprocurement debarment and suspension programs and activities that are consistent with the guidance. When adopted by a Federal agency, the provisions of the guidance have regulatory effect for that agency's programs and activities.
(1) Identify either the Federal agency head or the title of the designated official who is authorized to grant exceptions under §180.135 to let an excluded person participate in a covered transaction.
(2) State whether the agency includes as covered transactions an additional tier of contracts awarded under covered nonprocurement transactions, as permitted under §180.220(c).
(3) Identify the method(s) an agency official may use, when entering into a covered transaction with a primary tier participant, to communicate to the participant the requirements described in §180.435. Examples of methods are an award term that requires compliance as a condition of the award; an assurance of compliance obtained at time of application; or a certification.
(4) State whether the Federal agency specifies a particular method that participants must use to communicate compliance requirements to lower-tier participants, as described in §180.330(a). If there is a specified method, the regulation needs to require agency officials, when entering into covered transactions with primary tier participants, to communicate that requirement.
(1) Identify any specific types of transactions that the Federal agency includes as “nonprocurement transactions” in addition to the examples provided in §180.970.
(2) Identify any types of nonprocurement transactions that the Federal agency exempts from coverage under these guidelines, as authorized under §180.215(g)(2).
(3) Identify specific examples of types of individuals who would be “principals” under the Federal agency's nonprocurement programs and transactions, in addition to the types of individuals described at §180.995.
(4) Specify the Federal agency's procedures, if any, by which a respondent may appeal a suspension or debarment decision.
(5) Identify by title the officials designated by the Federal agency head as debarring officials under §180.930 or suspending officials under §180.1010.
(6) Include a subpart covering disqualifications, as authorized in §180.45.
(7) Include any provisions authorized by OMB.
Each Federal agency that participates in the governmentwide nonprocurement debarment and suspension system must issue a regulation implementing these guidelines within its chapter in subtitle B of this title of the Code of Federal Regulations.
Federal agencies must submit proposed regulations to the OMB for review within nine months of the issuance of these guidelines and issue final regulations within eighteen months of these guidelines.
The Interagency Committee on Debarment and Suspension established by section 4 of E.O. 12549 recommends to the OMB any needed revisions to the guidelines in this part. The OMB publishes proposed changes to the guidelines in the Federal Register for public comment, considers comments with the help of the Interagency Committee on Debarment and Suspension, and issues the final guidelines.
(3) Process that a Federal agency uses to disqualify a person. Unlike exclusion under subparts A through I of this part, disqualification is frequently not a discretionary action that a Federal agency takes, and may include special procedures.
A general information about Subparts A through I of this part.
B the types of transactions that are covered by the Governmentwide nonprocurement suspension and debarment system.
D the responsibilities of Federal agency officials who are authorized to enter into covered transactions.
(1) a participant or principal in a nonprocurement transaction A, B, C and I.
(4) a suspending official A, B, E, F, G and I.
(5) a debarring official A, B, D, F, H and I.
(6) an Federal agency official authorized to enter into a covered transaction A, B, D, E and I.
(b) Pronouns used within this part, such as “I” and “you,” change from subpart to subpart depending on the audience being addressed.
(c) The “Covered Transactions” diagram in the appendix to this part shows the levels or “tiers” at which a Federal agency may enforce an exclusion.
Subparts A through I of this part provide for reciprocal exclusion of persons who have been excluded under the Federal Acquisition Regulation, and provide for the consolidated listing of all persons who are excluded, or disqualified by statute, executive order or other legal authority.
(d) Federal agency official who is authorized to enter into covered transactions with non-Federal parties.
(b) Act as a principal of a person participating in one of those covered transactions.
(a) A Federal agency head or designee may grant an exception permitting an excluded person to participate in a particular covered transaction. If the agency head or designee grants an exception, the exception must be in writing and state the reason(s) for deviating from the governmentwide policy in Executive Order 12549.
(b) An exception granted by one Federal agency for an excluded person does not extend to the covered transactions of another Federal agency.
If any Federal agency excludes a person under Executive Order 12549 or Executive Order 12689, on or after August 25, 1995, the excluded person is also ineligible for Federal procurement transactions under the FAR. Therefore, an exclusion under this part has reciprocal effect in Federal procurement transactions.
If any Federal agency excludes a person under the FAR on or after August 25, 1995, the excluded person is also ineligible to participate in Federal agencies' nonprocurement covered transactions. Therefore, an exclusion under the FAR has reciprocal effect in Federal nonprocurement transactions.
Given a cause that justifies an exclusion under this part, a Federal agency may exclude any person who has been, is, or may reasonably be expected to be a participant or principal in a covered transaction.
Check the Governmentwide System for Award Management Exclusions (SAM Exclusions) to determine whether a person is excluded. The General Services Administration (GSA) maintains the SAM Exclusions and makes it available, as detailed in Subpart E of this part. When a Federal agency takes an action to exclude a person under the nonprocurement or procurement debarment and suspension system, the agency enters the information about the excluded person into the SAM Exclusions.
The importance of whether a transaction is a covered transaction depends upon who you are.
(2) A Federal agency official obtains an exception from the agency head or designee to allow you to be involved in the transaction, as permitted under §180.135.
All nonprocurement transactions, as defined in §180.970, are covered transactions unless listed in the exemptions under §180.215.
(d) A transaction that a Federal agency needs to respond to a national or agency-recognized emergency or disaster.
(e) A permit, license, certificate or similar instrument issued as a means to regulate public health, safety or the environment, unless a Federal agency specifically designates it to be a covered transaction.
(2) A Federal agency's regulation exempts it from coverage under this part.
(h) Notwithstanding paragraph (a) of this section, covered transactions must include non-procurement and procurement transactions involving entities engaged in activity that contributed to or is a significant factor in a country's non-compliance with its obligations under arms control, nonproliferation or disarmament agreements or commitments with the United States. Federal awarding agencies and primary tier non-procurement recipients must not award, renew, or extend a non-procurement transaction or procurement transaction, regardless of amount or tier, with any entity listed in the System for Award Management Exclusions List on the basis of involvement in activities that violate arms control, nonproliferation or disarmament agreements or commitments with the United States, pursuant to section 1290 of the National Defense Authorization Act for Fiscal Year 2017, unless the head of a Federal agency grants an exception pursuant to 2 CFR 180.135 with the concurrence of the OMB Director.
(1) The contract is awarded by a participant in a nonprocurement transaction that is covered under §180.210, and the amount of the contract is expected to equal or exceed $25,000.
(2) The contract requires the consent of an official of a Federal agency. In that case, the contract, regardless of the amount, always is a covered transaction, and it does not matter who awarded it. For example, it could be a subcontract awarded by a contractor at a tier below a nonprocurement transaction, as shown in the appendix to this part.
(2) The value of the subcontract is expected to equal or exceed $25,000.
As a participant in a transaction, you will know that it is a covered transaction because the Federal agency regulations governing the transaction, the appropriate Federal agency official or participant at the next higher tier who enters into the transaction with you, will tell you that you must comply with applicable portions of this part.
(a) You as a participant may not enter into a covered transaction with an excluded person, unless the Federal agency responsible for the transaction grants an exception under §180.135.
(b) You may not renew or extend covered transactions (other than no-cost time extensions) with any excluded person, unless the Federal agency responsible for the transaction grants an exception under §180.135.
(b) You may not begin to use the services of an excluded person as a principal under a covered transaction unless the Federal agency responsible for the transaction grants an exception under §180.135.
Yes, you as a participant are responsible for determining whether any of your principals of your covered transactions is excluded or disqualified from participating in the transaction.
You may decide the method and frequency by which you do so. You may, but you are not required to, check SAM Exclusions.
If as a participant you knowingly do business with an excluded person, the Federal agency responsible for your transaction may disallow costs, annul or terminate the transaction, issue a stop work order, debar or suspend you, or take other remedies as appropriate.
(a) Comply with this subpart as a condition of participation in the transaction. You may do so using any method(s), unless the regulation of the Federal agency responsible for the transaction requires you to use specific methods.
As a primary tier participant, your disclosure of unfavorable information about yourself or a principal under §180.335 will not necessarily cause a Federal agency to deny your participation in the covered transaction. The agency will consider the information when it determines whether to enter into the covered transaction. The agency will also consider any additional information or explanation that you elect to submit with the disclosed information.
(b) Due to changed circumstances, you or any of the principals for the transaction now meet any of the criteria in §180.335.
If a Federal agency later determines that you failed to tell the person at the higher tier that you were excluded or disqualified at the time you entered into the covered transaction with that person, the agency may pursue any available remedies, including suspension and debarment.
(b) Due to changed circumstances, you or any of the principals for the transaction now meet any of the criteria in §180.355.
(a) You as a Federal agency official may not enter into a covered transaction with an excluded person unless you obtain an exception under §180.135.
As a Federal agency official, you may not enter into a covered transaction with a participant if you know that a principal of the transaction is excluded, unless you obtain an exception under §180.135.
After entering into a covered transaction with a participant, you as a Federal agency official may not approve a participant's use of an excluded person as a principal under that transaction, unless you obtain an exception under §180.135.
(b) You may not renew or extend covered transactions (other than no-cost time extensions) with any excluded person, or under which an excluded person is a principal, unless you obtain an exception under §180.135.
(d) Approve a principal in connection with a lower tier transaction if your agency's approval of the principal is required.
(a) You as a Federal agency official must check SAM Exclusions when you take any action listed in §180.425.
(b) You must review information that a participant gives you, as required by §180.335, about its status or the status of the principals of a transaction.
If a participant knowingly does business with an excluded or disqualified person, you as a Federal agency official may refer the matter for suspension and debarment consideration. You may also disallow costs, annul or terminate the transaction, issue a stop work order, or take any other appropriate remedy.
If you as a Federal agency official determine that a lower tier participant failed to disclose information, as required by §180.355, at the time it entered into a covered transaction with a participant at the next higher tier, you may pursue any remedies available to you, including the initiation of a suspension or debarment action.
SAM Exclusions is a widely available source of the most current information about persons who are excluded or disqualified from covered transactions.
(a) Federal agency officials use SAM Exclusions to determine whether to enter into a transaction with a person, as required under §180.430.
(c) Sam Exclusions are available to the general public.
The General Services Administration (GSA) maintains SAM Exclusions. When a Federal agency takes an action to exclude a person under the nonprocurement or procurement debarment and suspension system, the agency enters the information about the excluded person into SAM Exclusions.
(7) The unique entity identifier approved by the GSA, of the excluded or disqualified person, if available.
(b)(1) The database for SAM Exclusions includes a field for the Taxpayer Identification Number (TIN) (the social security number (SSN) for an individual) of an excluded or disqualified person.
If you have questions about a listed person in SAM Exclusions, ask the point of contact for the Federal agency that placed the person's name into SAM Exclusions. You may find the agency point of contact from SAM Exclusions.
You may access SAM Exclusions through the Internet, currently at https://www.sam.gov.
When Federal agency officials receive information from any source concerning a cause for suspension or debarment, they will promptly report it and the agency will investigate. The officials refer the question of whether to suspend or debar you to their suspending or debarring official for consideration, if appropriate.
(a) Imposes suspension as a temporary status of in eligibility for procurement and nonprocurement transactions, pending completion of an investigation or legal proceedings Imposes debarment for a specified period as a final determination that a person is not presently responsible.
In deciding whether to suspend or debar you, a Federal agency handles the actions as informally as practicable, consistent with principles of fundamental fairness.
(a) For suspension actions, a Federal agency uses the procedures in this subpart and subpart G of this part.
(b) For debarment actions, a Federal agency uses the procedures in this subpart and subpart H of this part.
(a) Conduct imputed from an individual to an organization. A Federal agency may impute the fraudulent, criminal, or other improper conduct of any officer, director, shareholder, partner, employee, or other individual associated with an organization, to that organization when the improper conduct occurred in connection with the individual's performance of duties for or on behalf of that organization, or with the organization's knowledge, approval or acquiescence. The organization's acceptance of the benefits derived from the conduct is evidence of knowledge, approval or acquiescence.
(b) Conduct imputed from an organization to an individual, or between individuals. A Federal agency may impute the fraudulent, criminal, or other improper conduct of any organization to an individual, or from one individual to another individual, if the individual to whom the improper conduct is imputed either participated in, had knowledge of, or reason to know of the improper conduct.
(c) Conduct imputed from one organization to another organization. A Federal agency may impute the fraudulent, criminal, or other improper conduct of one organization to another organization when the improper conduct occurred in connection with a partnership, joint venture, joint application, association or similar arrangement, or when the organization to whom the improper conduct is imputed has the power to direct, manage, control or influence the activities of the organization responsible for the improper conduct. Acceptance of the benefits derived from the conduct is evidence of knowledge, approval or acquiescence.
Yes, a Federal agency may settle a debarment or suspension action at any time if it is in the best interest of the Federal Government.
Yes, if a Federal agency enters into a settlement with you in which you agree to be excluded, it is called a voluntary exclusion and has governmentwide effect.
(a) Yes, the Federal agency agreeing to the voluntary exclusion enters information about it into SAM Exclusions.
(b) Also, any agency or person may contact the Federal agency that agreed to the voluntary exclusion to find out the details of the voluntary exclusion.
Yes, a Federal agency may enter into an administrative agreement with you as part of the settlement of a debarment or suspension action.
The suspending or debarring official who enters into an administrative agreement with you must report information about the agreement to the designated integrity and performance system within three business days after entering into the agreement. This information is required by section 872 of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (41 U.S.C. 2313).
(a) Must correct the information within three business days if he or she subsequently learns that any of the information is erroneous.
(b) Must correct in the designated integrity and performance system, within three business days, the ending date of the period during which the agreement is in effect, if the agreement is amended to extend that period.
(c) Must report to the designated integrity and performance system, within three business days, any other modification to the administrative agreement.
(d) Is strongly encouraged to amend the information in the designated integrity and performance system in a timely way to incorporate any update that he or she obtains that could be helpful to Federal awarding agencies who must use the system.
(a) As a respondent you or your representative must either send, or make arrangements to appear and present, the information and argument to the suspending official within 30 days after you receive the Notice of Suspension.
(3) When delivered, if the agency sends the notice by e-mail or five days after the agency sends it if the e-mail is undeliverable.
(b) If you fail to disclose this information, or provide false information, the Federal agency taking the action may seek further criminal, civil or administrative action against you, as appropriate.
(b) A transcribed record of fact-finding proceedings must be made, unless you as a respondent and the Federal agency agree to waive it in advance. If you want a copy of the transcribed record, you may purchase it.
Unlike suspension, a debarment is not effective until the debarring official issues a decision. The debarring official does not issue a decision until the respondent has had an opportunity to contest the proposed debarment.
(a) The debarring official may debar you for any of the causes in §180.800. However, the official need not debar you even if a cause for debarment exists. The official may consider the seriousness of your acts or omissions and the mitigating or aggravating factors set forth at §180.860.
(a) In any debarment action, the Federal agency must establish the cause for debarment by a preponderance of the evidence.
(a) The Federal agency has the burden to prove that a cause for debarment exists.
(b) In determining the period of debarment, the debarring official may consider the factors in §180.860. If a suspension has preceded your debarment, the debarring official must consider the time you were suspended.
Agent or representative means any person who acts on behalf of, or who is authorized to commit a participant in a covered transaction.
(b) An official designated by the agency head.
System for Award Management Exclusions (SAM Exclusions) means the list maintained and disseminated by the General Services Administration (GSA) containing the names and other information about persons who are ineligible.
Federal agency means any United States executive department, military department, defense agency or any other agency of the executive branch. Other agencies of the Federal Government are not considered “agencies” for the purposes of this part unless they issue regulations adopting the governmentwide Debarment and Suspension system under Executive Orders 12549 and 12689.

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