Suspension and Debarment in Government Contract Law

Being suspended from working on a government contract places a company or individuals under temporary disqualification from contracting with the government for up to 18 months. Debarment entails the exclusion from contracting with the government for a fixed period of time for up to three years. Whether a contractor is suspended or debarred is left to thediscretion of the procuring agency in accordance with F.A.R. 9.402. The following are possible reasons for suspension or debarment of a contractor:
(1) violation of civil or criminal statute severe enough to call for this action
(2) a serious violation of and willful failure to perform in accordance with the terms of a government contract

A contractor's suspension or debarment from one government agency carries with it the inability to compete for or solicit any government contracts from a federal agency. A list of contractors who have been suspended or debarred is compiled by the GSA and circulated throughout all federal agencies in order that these contractors may not be awarded any government contracts. This restriction is also applied to soliciting work as subcontractors under a government prime contract vehicle. A contractor's existing government prime or subcontracts are not effected by suspension or debarment.

In order to minimize the damage caused by such actions by the federal government, legal representation is imperative. Debarments and suspensions are extremely serious actions. An agency's decision to suspend or debar a contractor may be appealed, depending upon thecircumstances surrounding the suspension or debarment.



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