9.405 Effect of listing
Source: FAR 9.405 on acquisition.gov
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.
(a) Contractors debarred, suspended, proposed for debarment, or voluntarily excluded, are excluded from receiving contracts, and agencies shall not solicit offers from, award contracts to, or consent to subcontracts with these contractors, unless the agency head determines that there is a compelling reason for such action (see 9.405-1(a)(2), 9.405-2, 9.406-1(d), 9.407-1(d), and 26.505(e)). Contractors debarred, suspended, proposed for debarment, or voluntarily excluded, are also excluded from conducting business with the Government as agents or representatives of other contractors.
(b) Contractors and other entities that have an active exclusion record in SAM because they have been declared ineligible on the basis of statutory or other regulatory procedures are excluded from receiving contracts, and if applicable, subcontracts, under the conditions and for the period set forth in the statute or regulation. Agencies shall not solicit offers from, award contracts to, or consent to subcontracts with these contractors under those conditions and for that period.
(c) Agencies shall not enter into, renew, or extend contracts with contractors that have been declared ineligible pursuant to https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2593&num=0&edition=prelim" target="_blank">22 U.S.C. 2593e.
(d) Contractors debarred, suspended, proposed for debarment, or voluntarily excluded, are excluded from acting as individual sureties (see part 28).
(e)
(1) After the opening of bids or receipt of proposals or quotes, the contracting officer shall review the exclusion records in SAM.
(2) Bids received from any listed contractor in response to an invitation for bids shall be entered on the abstract of bids, and rejected unless the agency head determines in writing that there is a compelling reason to consider the bid.
(3) Proposals, quotations, or offers received from any listed contractor shall not be evaluated for award or included in the competitive range, nor shall discussions be conducted with a listed offeror during a period of ineligibility, unless the agency head determines, in writing, that there is a compelling reason to do so. If the period of ineligibility expires or is terminated prior to award, the contracting officer may, but is not required to, consider such proposals, quotations, or offers.
(4) Immediately prior to award, the contracting officer shall again review the exclusion records in SAM to ensure that no award is made to a listed contractor.