9.406-2
Causes for debarment
FAR 9.406-2 lists specific offenses and failures that can result in a contractor being debarred, emphasizing the importance of integrity, compliance, and disclosure in government contracting.
Overview
FAR 9.406-2 outlines the specific causes for which a contractor or subcontractor may be debarred from government contracting. Debarment is a serious administrative action that excludes a contractor from receiving government contracts and subcontracts for a specified period. The regulation details both mandatory and discretionary grounds for debarment, including criminal convictions, civil judgments, serious contract violations, tax delinquency, failure to disclose certain violations, and other offenses that impact a contractor’s business integrity or responsibility.
Key Rules
- Criminal Convictions and Civil Judgments
- Debarment may result from convictions or judgments involving fraud, criminal offenses, antitrust violations, embezzlement, bribery, tax evasion, or other crimes affecting government contracts.
- Serious Contract Violations
- Willful or repeated failure to perform contract terms, or violations of the Drug-Free Workplace Act, can justify debarment.
- False “Made in America” Labeling
- Intentionally mislabeling products as “Made in America” when they are not is a cause for debarment.
- Unfair Trade Practices and Tax Delinquency
- Engaging in unfair trade practices or having delinquent federal taxes exceeding $10,000 can lead to debarment.
- Failure to Disclose Violations
- Principals must disclose credible evidence of certain violations or overpayments; failure to do so is grounds for debarment.
- Immigration Law Noncompliance
- Noncompliance with employment provisions of the Immigration and Nationality Act, as determined by DHS or DOJ, is a cause for debarment.
- Other Serious Causes
- Any other cause that seriously affects present responsibility may also justify debarment.
Responsibilities
- Contracting Officers: Must review contractor conduct and refer potential debarment cases to the suspending and debarring official.
- Contractors: Must avoid prohibited conduct, maintain compliance with contract terms, disclose required violations, and ensure accurate certifications and labeling.
- Agencies: Oversee contractor performance, investigate allegations, and enforce debarment actions as necessary.
Practical Implications
- This section exists to protect the government from doing business with non-responsible contractors.
- Contractors must maintain high ethical standards and compliance to avoid debarment.
- Common pitfalls include failing to disclose violations, tax delinquency, or misrepresenting product origin.