Effect of listing
Contractors listed as debarred, suspended, or otherwise excluded in SAM are strictly prohibited from receiving federal contracts or subcontracts unless a compelling reason is documented by the agency head.
Overview
FAR 9.405 outlines the effects of being listed as debarred, suspended, proposed for debarment, or voluntarily excluded from federal contracting. Contractors with such status are generally prohibited from receiving contracts, subcontracts, or acting as agents, representatives, or individual sureties for government contracts. Agencies are not allowed to solicit offers from, award contracts to, or consent to subcontracts with these entities unless a compelling reason is documented by the agency head. The regulation also covers contractors declared ineligible under statutory or regulatory procedures, and those specifically barred under 22 U.S.C. 2593e. Contracting officers must check the System for Award Management (SAM) exclusion records both after bid opening and immediately before award to ensure compliance. Bids or proposals from listed contractors must be rejected unless a compelling reason is documented.
Key Rules
- Exclusion from Contracting
- Debarred, suspended, or otherwise excluded contractors cannot receive contracts or subcontracts, or act as agents or sureties, unless a compelling reason is documented.
- SAM Exclusion Records
- Contracting officers must check SAM for exclusion records after bid opening and before award.
- Handling Bids and Proposals
- Bids from listed contractors must be rejected unless a compelling reason is documented; proposals from listed contractors are not evaluated or discussed during ineligibility.
- Statutory and Regulatory Ineligibility
- Contractors ineligible by statute or regulation are excluded for the period specified by law.
- Special Statutory Bar (22 U.S.C. 2593e)
- Agencies cannot contract with entities barred under this statute.
Responsibilities
- Contracting Officers: Must check SAM exclusion records, reject bids/proposals from listed contractors, and document any compelling reasons for exceptions.
- Contractors: Must ensure they are not listed as excluded in SAM to be eligible for awards.
- Agencies: Must enforce exclusion rules and ensure compliance with statutory and regulatory ineligibility.
Practical Implications
- This section ensures that entities excluded for integrity or performance issues do not receive federal contracts or subcontracts.
- It requires diligent checking of exclusion records and documentation of any exceptions.
- Common pitfalls include failing to check SAM at required stages or improperly awarding contracts to excluded entities.