General
Suspension is a serious, government-wide action taken to protect the government's interests when there is adequate evidence of contractor misconduct, and contractors must act promptly to address any causes for suspension.
Overview
FAR 9.407-1 outlines the general principles and procedures for suspending contractors from government contracting. Suspension is a protective, interim measure taken by the government when there is adequate evidence of misconduct or other causes listed in FAR 9.407-2, and immediate action is deemed necessary to protect the government's interests. The suspending and debarring official has broad discretion in determining the need for suspension and must consider the seriousness of the contractor's actions, as well as any mitigating or aggravating factors. Suspension typically applies to all divisions and affiliates of the contractor unless specifically limited, and is effective government-wide unless an agency head provides a written exception. The regulation also addresses the coordination of suspensions under both the FAR and the Federal Management Regulation (FMR) for acquisition contracts and the purchase of federal personal property.
Key Rules
- Authority to Suspend
- The suspending and debarring official may suspend a contractor in the public interest for causes listed in FAR 9.407-2, following procedures in FAR 9.407-3.
- Basis and Scope of Suspension
- Suspension is based on adequate evidence and is intended to protect the government's interests pending investigation or legal proceedings. It can apply to all divisions and affiliates unless limited.
- Consideration of Factors
- Officials must weigh the seriousness of the contractor's conduct and may consider remedial, mitigating, or aggravating factors. Contractors must present evidence of remedial actions if aware of a cause for suspension.
- Government-wide Effect
- Suspension is effective across the executive branch unless an agency head provides a written justification for continued dealings.
- Dual Suspension Authority
- If the official has authority under both FAR and FMR, suspensions should be coordinated and clearly indicated in the notice.
Responsibilities
- Contracting Officers: Must recognize and enforce suspensions, and ensure no awards are made to suspended contractors.
- Contractors: Must promptly present evidence of remedial or mitigating factors if aware of a suspension cause, and comply with suspension terms.
- Agencies: Must assess evidence, notify affected parties, and ensure suspensions are properly documented and communicated government-wide.
Practical Implications
- This section ensures the government can act quickly to protect its interests when contractor misconduct is suspected. Contractors must be proactive in addressing potential causes for suspension and understand that suspension can have broad, immediate impacts across all business units and affiliates. Failure to respond or remediate can result in loss of eligibility for all federal contracts and property purchases.