26.505 Suspension of payments, termination of contract, and debarment and suspension actions
Source: FAR 26.505 on acquisition.gov
Noncompliance with drug-free workplace requirements can result in payment suspension, contract termination, and debarment, with waivers allowed only in exceptional cases by the agency head.
Overview
FAR 26.505 outlines the procedures and consequences for contractors who fail to comply with drug-free workplace requirements. If there is adequate evidence of noncompliance, the contracting officer may suspend contract payments or terminate the contract for default. The section also requires referral to the agency's suspending and debarring official for potential suspension or debarment actions. The specific causes for these actions include failure to comply with the Drug-Free Workplace clause (FAR 52.226-7) or a pattern of employee drug convictions indicating a lack of good faith effort to maintain a drug-free environment. The agency head may waive these actions only in cases where not doing so would severely disrupt agency operations, and this waiver authority cannot be delegated.
Key Rules
- Suspension of Payments
- Contracting officers may suspend payments if there is written evidence of noncompliance with drug-free workplace requirements.
- Termination for Default
- Contracts may be terminated for default if noncompliance is confirmed in writing.
- Referral for Suspension/Debarment
- Cases must be referred to the agency's suspending and debarring official when action is taken.
- Waiver Authority
- Only the agency head can waive these actions, and only to prevent severe operational disruption.
Responsibilities
- Contracting Officers: Must document findings, suspend payments or terminate contracts as appropriate, and refer cases for suspension/debarment.
- Contractors: Must comply with drug-free workplace requirements and demonstrate good faith efforts to maintain compliance.
- Agencies: Must follow procedures for referrals and waivers, with the agency head holding sole waiver authority.
Practical Implications
- This section enforces strict compliance with drug-free workplace policies, providing clear consequences for violations.
- Contractors risk payment suspension, contract termination, and debarment for noncompliance.
- Agencies must ensure due process and proper documentation before taking action, and waivers are rare and tightly controlled.
(a) After determining in writing that adequate evidence to suspect any of the causes at paragraph (d) of this section exists, the contracting officer may suspend contract payments in accordance with the procedures at 32.503-6(a)(1).
(b) After determining in writing that any of the causes at paragraph (d) of this section exist, the contracting officer may terminate the contract for default.
(c) Upon initiating action under paragraph (a) or (b) of this section, the contracting officer shall refer the case to the agency suspending and debarring official, in accordance with agency procedures, pursuant to subpart 9.4.
(d) The specific causes for suspension of contract payments, termination of a contract for default, or suspension and debarment are-
(1) The contractor has failed to comply with the requirements of the clause at 52.226-7, Drug-Free Workplace; or
(2) The number of contractor employees convicted of violations of criminal drug statutes occurring in the workplace indicates that the contractor has failed to make a good faith effort to provide a drug-free workplace.
(e) A determination under this section to suspend contract payments, terminate a contract for default, or debar or suspend a contractor may be waived by the agency head for a particular contract, in accordance with agency procedures, only if such waiver is necessary to prevent a severe disruption of the agency operation to the detriment of the Federal Government or the general public (see subpart 9.4). The waiver authority of the agency head cannot be delegated.