9.404 Exclusions in the System for Award Management
Source: FAR 9.404 on acquisition.gov
Agencies must promptly and accurately enter, update, and maintain exclusion records in SAM to prevent awards to debarred or ineligible entities.
Overview
FAR 9.404 outlines the requirements for managing and using exclusion records in the System for Award Management (SAM). The General Services Administration (GSA) operates SAM, which serves as the central repository for exclusion records, including debarments, suspensions, and other ineligibility actions. The regulation details the information that must be included in exclusion records, agency responsibilities for data entry and maintenance, and procedures to prevent contracting with excluded entities. Agencies must ensure timely and accurate updates to SAM, maintain internal records, and establish controls to avoid awarding contracts to excluded parties. The section also provides guidance on technical support and directs users to the SAM website.
Key Rules
- GSA Operation of SAM
- GSA manages SAM and provides technical support to agencies.
- Exclusion Record Content
- Exclusion records must include specific data such as names, addresses, cause, effect, termination date, and agency contact information.
- Agency Data Entry and Maintenance
- Agencies must assign responsible individuals, enter/update exclusion data promptly, and remove roles when staff change.
- Timeliness of Updates
- Exclusion information must be entered within 3 working days of action and updated within 5 working days of any changes.
- Internal Controls and Recordkeeping
- Agencies must maintain records and ensure procedures prevent contracting with excluded entities.
Responsibilities
- Contracting Officers: Must check SAM for exclusions before awarding contracts and avoid contracting with listed entities.
- Contractors: Must ensure they are not listed in SAM as excluded entities.
- Agencies: Must assign roles, maintain and update exclusion records, and establish procedures to prevent awards to excluded parties.
Practical Implications
- This section ensures government contracts are not awarded to entities that are debarred, suspended, or otherwise ineligible, protecting the integrity of federal procurement. Timely and accurate data entry in SAM is critical, and failure to comply can result in improper awards or administrative penalties. Agencies must have robust internal controls and clear assignment of responsibilities to maintain compliance.
(a) The General Services Administration (GSA)—
(1) Operates the web-based System for Award Management (SAM), which contains exclusion records; and
(2) Provides technical assistance to Federal agencies in the use of SAM.
(b) An exclusion record in SAM contains the—
(1) Names and addresses of the entities debarred, suspended, proposed for debarment, voluntarily excluded, declared ineligible, or excluded or disqualified under the nonprocurement common rule, with cross-references when more than one name is involved in a single action;
(2) Name of the agency or other authority taking the action;
(3) Cause for the action (see 9.406-2 and 9.407-2 for causes authorized under this subpart) or other statutory or regulatory authority;
(4) Effect of the action;
(5) Termination date for each listing;
(6) Unique Entity Identifier;
(7) Social Security Number (SSN), Employer Identification Number (EIN), or other Taxpayer Identification Number (TIN), if available; and
(8) Name and telephone number of the agency point of contact for the action.
(c) Each agency must—
(1) Identify the individual(s) responsible for entering and updating exclusions data in SAM and assign the appropriate roles;
(2) Remove the exclusion roles in SAM when the individual leaves the organization or changes functions;
(3) For each exclusion, including each voluntary exclusion, accomplished by the agency–
(i) Enter the information required by paragraph (b) of this section within 3 working days after the action becomes effective;
(ii) Determine whether it is legally permitted to enter the SSN, EIN, or other TIN, under agency authority to suspend or debar; and
(iii) Update the exclusion record in SAM, generally within 5 working days after modifying or rescinding an action;
(4) In accordance with internal retention procedures, maintain records relating to each debarment, suspension, proposed debarment, or voluntary exclusion taken or entered into by the agency;
(5) Establish procedures to ensure that the agency does not solicit offers from, award contracts to, or consent to subcontracts with contractors who have an active exclusion record in SAM, except as otherwise provided in this subpart;
(6) Direct inquiries concerning listed contractors and other entities to the agency or other authority that took the action; and
(7) Contact GSA for technical assistance with SAM, via the support e-mail address or on the technical support phone line.
(d) SAM is available via https://www.sam.gov" target="_blank">https://www.sam.gov.