Protecting the Government's Interest When Subcontracting With Contractors Debarred, Suspended, Proposed for Debarment, or Voluntarily Excluded
Contractors must not subcontract above the threshold with debarred or suspended parties unless justified and approved, and must flow down these requirements to applicable subcontractors.
Overview
FAR 52.209-6 requires contractors to avoid subcontracting with parties that are debarred, suspended, proposed for debarment, or voluntarily excluded from federal contracts, except under specific circumstances. The clause applies to subcontracts exceeding the threshold in FAR 9.405-2(b), except for those involving commercially available off-the-shelf (COTS) items. Its purpose is to protect the Government’s interests by ensuring that federal funds are not directed to entities that have been excluded from government contracting due to serious issues such as fraud or poor performance.
Key Rules
- Prohibition on Certain Subcontracts
- Contractors must not enter into subcontracts above the specified threshold with debarred, suspended, or excluded parties unless there is a compelling reason.
- Disclosure Requirement
- Prospective subcontractors (other than COTS providers) must disclose their exclusion status in writing before award.
- Notification to Contracting Officer
- If a contractor intends to subcontract with an excluded party, they must notify the Contracting Officer in writing, providing justification and risk mitigation steps.
- Flowdown Requirement
- The clause must be included in all applicable subcontracts above the threshold, except for COTS items.
Responsibilities
- Contracting Officers: Review and approve any proposed subcontracts with excluded parties and ensure compliance.
- Contractors: Screen subcontractors, obtain written disclosures, notify the Contracting Officer if using an excluded party, and flow down the clause as required.
- Agencies: Oversee contractor compliance and maintain exclusion lists in SAM.
Practical Implications
- This clause ensures that government funds are not spent on entities barred from federal work, reducing risk and promoting integrity. Contractors must have robust due diligence and documentation processes to avoid noncompliance, which can lead to contract termination or further exclusion.